Below is a list of benefits and risks you will need to consider. Remember that it’s essential to know everything there is about student property before you purchase any development. Student accommodation can seem like the perfect investment, and with the recent changes, it is slowly becoming a top investment opportunity. However, sometimes it’s about an investment suits you and your lifestyle.
Benefits
The growing demand for student accommodation comes from the rising population. A recent study by UCAS found that there was an 0.2% increase in university applicants between 2016 and 2017. These student numbers have continued to rise and are expected to increase for the foreseeable future. RW Invest is an expert property investment company who recommend looking at demand before investing in a property. Both cities such as Liverpool and Manchester are highly in demand due to recent regeneration. Plus, the universities within these cities are quickly climbing the league tables.
While it’s not always the case, most of the time, students will either have parents paying their accommodation or be using their student loan. This means that payments will be affordable and prompt. As an investor and potential landlord, one of the hardest aspects of the job is collecting rent except when a property is a student. This is another reason why so many investors prefer student builds.
In reality, students tend to be less demanding than older tenants, which mean they’re more willing to accept a problem that may occur. For example, if a tap is leaking in the bathroom, working professionals would want this fixed immediately. Whereas, students may leave it for several months before asking for it to be fixed. Sometimes, they may leave the problem entirely, which means you don’t have to deal with them.
Risks
Unfortunately, students tend to change their living arrangements more regularly and sometimes drop out of their course at university. This may mean you’re left with no tenant for the rest of the academic year, or you must struggle to find another one. This uncertainty isn’t for every investor, but if you’re willing to take the risk, it may be worth it.
Although students tend to complain less about issues and errors, they are more likely to cause damage to property. This can often leave landlords with huge repair bills and redecoration costs. However, this is only a possibility. The student life is painted as a party, but not all students are like this. It’s mostly advised as a landlord to meet prospective student tenants before agreeing to a contract just to gage what they’re going to be like in your property. Doing so will mean you aren’t risking your property getting damaged.