About The Book

Investing In Student Buy To Let
Ajay Ahuja

This book provides landlord advice, including finding and investing in student property as well as letting property.

Articles and Resources

Book Contents »

 

1. Introduction

2. Why Invest in the Student Market?

3. Finding the Right Property

4. Finding the Right Student Tenant

5. Tax

6. Security and Legal Issues

7. Lenders in the Student Rental Market

8. University Cities and Towns

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Finding the Right Property

 

What to look for when viewing a property

The first good thing is that the market will always be there! Secondly, if you play things right, you can achieve higher yields than if you were to let the house out as normal. For example, if I were to let out my three-bedroomed terraced house to a couple with two kids in the area of Withington/Didsbury in Manchester then my average gross income would be say £433 per contract month.

However, if I were to let it out to students, I could convert the bottom reception/lounge and rent it out as a house with four bedrooms. For an average rent of £50 per week, I would receive £866 per month – basically double\This increased yield can be achieved with the commitment and correct attitude required to attract the right student for the right property.

Do not believe the myth that a property is only worth buying if you could see yourself living there. The fact is you aren’t going to live there. What you should ask is whether students would live here.

Matching the right property with your target group is of crucial importance. The image of three or four undernourished and impoverished students, willing to live in a shoebox for three years, is a stereotype that has disappeared with the last decade.

This does not mean that every student would like a penthouse suite with a Jacuzzi; nor does it mean that the trusted old formula of a three-bedroomed house with a standard sofa, kitchen table, etc. would not be adequate.

What is important is asking yourself how a potential student buy-to-let purchase can be made as competitive as possible within its local setting. For example, if you know that the latest student developments offered by the university will have full access to hi-speed or broadband internet in every room, then you must provide at least the same.

The best way to find out the demand and suitability of property is to speak to both the university students’ union and the university student housing office. I have found that this way, from one perspective you’ll get ideas through the student representation and from the other, a more commercially focused response and suggestions.

When viewing a property check for:

Carpets You have a legal duty to provide floor coverings. If there are no carpets then you will have to pay for new ones.
Kitchen Is the kitchen big enough to accommodate a small dining table? This is attractive if there is only one reception room and it turns the kitchen into a kitchen diner.
Smallest bedroom If the smallest bedroom is smaller than 6ft 6ins in any direction then it is not a bedroom! You need to be able to get a bed in a bedroom hence this room can only be considered as a study or a baby’s room. You need to consider this when thinking about what type of tenant you are looking for – if you are looking for two professional people to share a two bedroomed flat then the second bedroom must be bigger than 6ft 6ins.
Bathroom Is there a fitted shower? A bathroom is a lot more desirable if there is a power shower. If there are two bathrooms then the property is very desirable, even if it is only a shower room.
Heating Is the heating system old? This can be costly to replace. If possible get it checked prior to purchase. It is your legal duty to provide heating and to issue a gas safety record.
Electrics Are the electric sockets old? This will tell you that at some point the whole electric system will require rewiring.
Service charges If it is a flat you will have to pay service charges. Ask the agent if they have any details of the service charges. Some places have exorbitant service charges that render the whole investment unprofitable. Avoid listed buildings as they have frequent redecoration policies that can be expensive.


If the property is in a reasonable condition then buy it. If demand is good there should be no problem letting it out as long as the property is in reasonable condition.