Property investors are constantly reviewing the different types of investment available in the property market and so many are already aware of the potential student property investment opportunities have. If however you are a new investor, this article offers a detailed overview of the benefits of investing in student accommodation.

The Market for Student Accommodation

Each year, tens of thousands of young people leave home and head for university or college, often in a completely new area of the country. Even after the introduction of tuition fees, the number of young people taking up further education has seen continued growth. These homegrown student numbers have been further bolstered by the large number of international students coming to the UK to study.

Student Property Investment

This is all good news for the property investor and it makes student property investment projects one of the most attractive types of accommodation to invest in. The benefits of student rentals of other markets include:

  • Student housing generally has a high occupancy rate with a ready market of new tenants keen to find suitable accommodation near to their place of study each year. This ensures your rental income remains strong.
  • A student HMO property will generally achieve a higher rental return than a family property covering your costs and outgoings more effectively.
  • The volume of students generally outweighs the number of on campus places available and second and third year students often prefer to move away from the on campus locations.

Types of Student Accommodation

Student accommodation comes in many different shapes and sizes and includes houses, apartments, pods, private halls of residence and now even luxury flats. HMOs with multiple tenants in single houses are one of the most common alongside Halls of Residence.

HMO properties that are occupied by multiple student tenants, have rents charged on a per student per week basis, and Mistoria typically achieve between £95 and £115 pppw rentals on 3 to 6 bedroom properties. A quick calculation shows you this is an excellent monthly rental return.

Location is critical for students as they do not want to have long journeys to and from their University, so having an excellent location also helps with your rental income alongside the quality of the accommodation.

Best Locations for Student Property

We have chosen the North West and in particular Liverpool, Salford and Bolton as excellent areas for student property investment as they have a strong demand, the region has a strong pull for students due to the nightlife and other activities available in these city regions and to allow for a reasonable capital growth in the property value itself as you are not having to pay high London prices.

We have several hundred successful HMO properties in the North West of the UK and can help you identify the best opportunities in the region.

Standards for Student Accommodation

Many students today have high expectations and are prepared to pay increased rents for good quality accommodation and that is why we have chosen to redevelop to a good standard. Take a look at our Homes under the Hammer appearances and you can see exactly what we do and how we achieve an outstanding end product.

We cover everything a student needs, from shared dining and cooking facilities through to individual rooms finished to a great specification.

Landlords who own Student Property

There is a large amount of legislation and regulation surrounding both the initial design of an HMO property but also in finding and managing tenants to ensure you keep a steady rental income. Mistoria Group handle the whole process from identifying the property, through to managing all of the paperwork and licenses right up to managing the tenants and handling payments.

This is why we like to think of our clients as Armchair Investors, we do all of the legwork for you.

What to Consider when Buying Student Property

Student property investment is no different to any other form of investment in that you should always research thoroughly before you buy.

Look in depth at the area you are thinking of investing in and who you are going to partner with. You can of course do it all yourself but there is a lot of time and effort required, especially if you do not know the area well.

Conclusion

Investing in student property has a lot of benefits for the careful investor. Choosing the right location where there is a strong year on year demand protects your income. Choosing the right partner will help you avoid the pitfalls.

We would love to hear from you if you are thinking about taking your first steps or if you are an existing investor looking to move into the North West market.