The Pros And Cons Of Letting To Students
One of the decisions that you will need to make when deciding the type of property you want to buy to let out and where you would like to buy it, is what sort of tenants you prefer. Yes, it goes without saying that you want a tenant that is no trouble, keeps the property clean and tidy and always pays the rent on time. So, let’s have a look at where the student fits into this equation.
Advantages of letting to students
Well, there is certainly an ever-increasing supply of students as more and more decide to go to university. Of course, in their first year, many will choose halls of residence and some will continue to live at home with their parents but there are still significant numbers looking for private lettings.
Students are very forgiving when it comes to the standard of accommodation. They do not expect nor could they afford to live in a property that is beautifully decorated and fitted out with an expensive kitchen and white goods. Therefore, you can afford to just give it a lick of paint and put in a budget kitchen. The furnishings can be cheap and cheerful being fit for purpose. This enables you to keep your expenditure to a minimum.
You can usually get more students into a property than if it were a typical family of four as the lounge could be used to provide bedroom accommodation.
Disadvantages of student lets
Students are not the tidiest or most careful of people so you are more likely to have to keep your eye on what is going on at the property and be faced with minor repair and cleaning costs when they vacate for the summer holidays.
During the summer period, depending upon the terms of the rental agreement, your rental income may drop.
The value of the property is likely not to rise as much as an investment property let to other types of tenants.
It is not as easy to confirm a student’s credit worthiness as they are less likely to have a significant credit rating with the credit reference agencies.
So, we hope that the above is of some help in deciding if the student letting market is for you.