Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Saturday, October 19, 2013

Student tenants deliver highest returns

One of the most consistent trends observed in the Property Hawk Mortgages Property Investor Profile has been the excellent rental yields achieved from student accommodation, which are considerably higher than the average. In Q3, the average rental yield from a student tenant was 7.50% (compared with a 6.06% overall average).

It is surprising therefore that such a small percentage of applications processed by Property Hawk Mortgages have been for properties rented out to students. In Q3 only nine out of 425 applications sampled were for student properties, representing just 2% (families represented 62% and professionals 33%).

This is a segment of the private rented sector that could really provide an excellent opportunity for landlords, especially as the demand for student accommodation is likely to remain strong with the number of people currently entering higher education.

It may be that landlords have some reservations about renting to students, perhaps thinking they might be unreliable payers or give cause to higher property maintenance. However, recent research by the National Landlord’s Association has shown that students are in fact the most reliable

Tenants; just 38% of student landlords experienced arrears in the last year compared with 59% of those letting to blue collar workers, 40% letting to families and 71% letting to benefit recipients.

Other benefits of renting to students are that they don’t require state-of-the-art accommodation; they sometimes pay a term in advance and they tend to share accommodation in groups, thus increasing overall rental income.



Tel: 01494 894639

Your home may be repossessed if you do not keep up repayments on your mortgages.  
The Financial Services Authority does not regulate some forms of mortgage.

Bookmark and Share

1 comment:

Moira Landlord lancashire said...

Don't assume students are unsophisticated, we let our property with a University scheme and they insist on good standards for furniture etc.They also want a high speed continuous broadband service .
Students now prefer ensuites which the new hall accommodation offers + high security which one house alone can't offer.

Returns are good but the costs are high too!!