There are slight signs of recovery in the buy to let market and it could just be the right time for you to consider specialising in accommodation for students.
Students can make good tenants for a variety of reasons. One of the obvious reasons is that with a sharing situation you can expect a greater yield from a property. A three-bedroom house may accommodate as many as four students and, this is said in the most pleasant way, students are not as fussy as professional tenants. You may find that students will use a lounge or dining room as a bedroom which increases potential revenue.
They will often put up with slightly outdated decorations and will not be as demandingly design conscious as many people. Having said that the standards of accommodation in student halls are often excellent so don’t be too complacent!
Another advantage can be advance rental. Students, or more usually their parents, will often pay rental for the whole of a term in advance. Obviously this gives great cash flow to a landlord and means that mortgage and other payments can be scheduled to maximum benefit.
You will have more options about the area in which you choose to buy a property if student letting is to be your aim. Students often want to live in area shunned by other tenants because the fast food and convenience facilities they need are close at hand. Students will also want to be among their friends and colleagues and there are community benefits here for landlords who can exchange ideas and often obtain block discounts from local tradesmen.
As property values stagnate or fall rental values traditionally rise and demand increases. The student market could well be for you. Remember, these are academically minded people and if you look after them they will invariably look after you and your business should prosper.