How to Get into The Rental Market: A Primer for Those Looking to Take The Plunge
The increased cost of education in the UK has been a major factor influencing student choice and university applications. As a result, there has been a rise in demand for student accommodation and rental market. There are currently around 342,000 students living in rented accommodation in the UK. Almost 80% of all undergraduates live in private rented accommodation during their time at uni. Even though landlords and investors who want to take advantage of this demand have a good outlook, it’s still not easy to get into this market as a landlord. This article talks about some of the problems that come with investing in student properties and how you can get the best return on your next investment in this area.
The benefits of investing in student accommodation:
A new wave of students and a rising interest in higher education in the UK have resulted in a significant boost in demand for student accommodation. It’s forecasted that the number of students in the UK will increase by 9% by 2028. This is likely to make it easier for students to find places to rent shortly. Most students rent their housing, so landlords need to be aware of the risks and challenges that come with this market. Also, landlords need to be more aware of what the law says they have to do. There have been several technical changes to the law in this sector in recent years. For example, in 2017, the law around deposits was significantly overhauled. Because of this, landlords have more responsibilities, but tenants also need to be more aware.
Key challenges for landlords in the UK student accommodation market:
While the rental market for student accommodation has many positive aspects, it also comes with several challenges. One of the biggest issues for landlords is the transient nature of students. The UK student population is highly mobile, with students coming and going regularly. This can create issues around consistent rental payments from students. The fact that students are not in a position to commit to long-term rental agreements can make it tricky for landlords to manage their properties’ cash flow. The need for more maintenance and repairs is another problem that comes with the student rental market. This is because students often cause more wear and tear on their living spaces than other tenants. The need for more maintenance and repair work can put a strain on landlords’ finances.
Expert tips for landlords looking to invest in student accommodation
As a landlord looking to capitalize on the growing demand for student accommodation, there are several things that you can do to increase the likelihood of a successful venture.
Here are a few tips to consider.
Choose the right location:
Students are likely to favor living in areas close to their universities. When deciding where to put your properties, try to choose places near university campuses. This is likely to increase the demand for your properties.
Improve the condition of your properties:
To get the most out of your rental rates, you need to make sure your properties are in good shape. This means following the right repair and maintenance schedule.
Choose the right tenants:
Make sure that you choose the right tenants for your properties. This means carrying out thorough tenant screening and choosing tenants who are likely to pay their rent on time and look after your properties.
Offer rent-assured insurance:
You can also make your business more likely to succeed by giving your tenants rent-assured insurance. This insurance covers tenants against changes in their income that could result in missed rental payments.
Investing in student accommodation isn’t easy. However, it’s an attractive sector for those with a long-term view. In the UK, there are more and more students who need to rent a place to live. As the number of college and university students keeps going up, so will the need for student housing. In the UK, there are more and more students who need to rent a place to live. And as more and more people go to college or university, the demand for student housing will also rise. Since most students rent their homes, landlords need to be aware of the risks and challenges that come with this market. There have been several technical changes to the law in this sector in recent years, which have created greater obligations for landlords, but also a need for increased awareness among tenants.