Student buy-to-let is a great opportunity for many investors to expand their portfolio. With low entry points and high rental yields, there are plenty of reasons why the student investment market is currently thriving.
One of the main advantages of investing in Purpose-Built Student Accommodation (PBSA) is the fact that, unlike university-run halls, private rooms can be rented for 51 weeks of the year, as opposed to exclusively during term time.
University halls which are only rented by students during term time are often open to the public during the popular summer months as a cheap bed & breakfast alternative and offer the university an extra source of funds during void periods. However as the owner of a privately owned and full managed student buy-to-let you have the opportunity to enjoy a full 51 weeks of rental as rooms are often offered to students on a full term basis should they wish.
Statistics from Fortis Student Living highlight that a significant and increasing number of students choose to rent their room over the summer period, with over a third of students renting their room for longer period than the traditional 44 week contract.
Marketing Manager Sarah Marsh explains some of the reasons why students might choose to rent their room over term break, which include working over the summer period in their university city, the cost (as cheaper rates are often applied for the 51 week contracts), summer courses which are popular with international students, and wishing to stay with their friends who are also staying over summer.
In addition the fact that the rooms are often rented for the full year benefits landlords in that their tenant’s rental agreements are not dissimilar to that of the traditional buy-to-let Assured Shorthold Tenancy agreements found in the normal residential market.
Investors in the managed student sector can rest easy knowing that their property is being kept in good condition, and there is minimal wear and tear as tenancy agreements set out clear terms and conditions – for many students that opt into yearly rental of a fully functional studio the property becomes their home, and in turn is treated as such.
Boutique PBSA also encourages a high year on year return rate as students enjoy the option of living in a self-contained property which provides a real taste of independent adult living as well as the perks of living in shared accommodation, such as communal gyms, cinema rooms and social events.
Student Podshop has a number of buy-to-let investment options available, all run by trusted and proven management agents. Enquire today to speak to one of our consultants about current opportunities.