The United Kingdom is home to the some of the best and busiest universities in the world, and thousands of international students arrive in the UK every year to join one of the many prestigious universities to get their degree, bringing millions of pounds to the economy and presenting continuous cycles of investment opportunities. Student housing demands are high as a result of both domestic and international students requiring accommodation, presenting a huge amount of investment opportunities.
Although student property investment has a reputation for being one of the highest returning investments, it is also regarded as the investment opportunity that requires the most work. With such a large number of students coming through universities each year, student property landlords face many problems with such a high turnover of tenants.
Students are known to enjoy the odd drink or two, along with a party every once in a while! As a result of this, you might run into some social complaints from the local community whether it’s late night shenanigans or inappropriate behavior.
By investing in a property in a student area, such complaints are minimized because students populate the flats and houses in the area. If the property isn’t in a student area, then it is advised that the tenancy agreement contains rules about noise and conditions of living in the property. There must also be consequences for rule breakers.
The short-term nature of student tenancies, combined with the free spirit nature of the residents, often results in a more careless attitude towards the property. Whether it’s late nights fueled by alcohol and stumbling tenants or just a lessened feeling of responsibility, small damage is not uncommon in student lets.
A solution is to have a solid contract that holds all tenants responsible for any damage and also it is advised to charge a deposit which is equal to 1 month or more of the total rent per month and to hold this in a deposit protection scheme.
Late rent is always an issue when it comes to renting out properties, and students who may have difficult financial situations due to having to obtain student loans and pay high fees, may be a group that risk paying rent late. Estate agents and letting agents can handle late payments, taking the hassle away from landlords
Students of course, like to have fun. That is no secret at all. Students tend to make decisions that impact the immediate here and now and therefore can be rather unpredictable. It isn’t uncommon for students to suddenly drop out of university or to transfer, go traveling around the world or simply move properties. All of these situations represent some risk for those who are involved in student property investment so a joint tenancy contract is essential.
A joint tenancy is the best option, as this means that if a tenant leaves, any remaining tenants take on the financial burden. Finances are collective and continued payment is easier to obtain.