Is Letting To Students A Good Property Investment
There are many different markets open to you if you want to get into property investment, some more suitable than others.
Depending on the kind of property you buy, you could look to rent to single people, professional couples or maybe even families. Even then there are different types of rent – social housing, temporary accommodation, long-term rents, or somewhere for a family to live while their home is repaired or while they are moving house.
One area that isn’t often explored is renting to students. You can understand why – after all, who wants to put their life savings into a property investment only to see it wrecked by some drunken frolics from over excited teenagers (but still have the property tax bill afterwards)?
So yes there are downsides to it. But there are benefits as well, including the chance to make more money, and get it out of your property investment more quickly.
Here are five good things followed by five bad things about relying on students for rental income.
1) You can get more people in a house: Your three bedroomed house will attract more income each month if you rent it to three people, compared to a couple or small family. You could even turn a lounge into a fourth bedroom. There’s also less risk to your property investment from a tenant pulling out at short notice or not paying the rent on time, as you are spreading the risk across a greater number of people.
2) They will pay rent in advance: Especially if the Bank of Mum and Dad is paying the rent! Parents may be keen to know the rent has been paid, so there is no temptation to drink it instead!
3) They will accept a lower level of property: Students are not looking to make a home. They need a base to study and party. So if you buy an out-of-date property and can’t afford to bring the d