The country might be stuck in a recession, but the rental market has never been so good. Because of this, investing in buy to let properties is a much better option than sticking your money in a savings account where it is unlikely to work very hard for you. So once you have made the decision to dip a toe in the property investment market, you need to decide which group of tenants you are hoping to attract.
Choose the Right Tenants – The main buy to let sectors are:
Social tenants
Young professionals
Families
Students
Each group of tenants has its pros and cons, but in general the student market is widely considered to be one of the most secure.
Great Reasons to Market Your Properties at Students.
Students typically pay their rent in advance, so cash flow is never going to be an issue. Students also have parents to help them out if they have money problems, so instead of worrying about tenants defaulting on their rent, you will find that student tenants are reliable payers.
Good quality rental accommodation in the most popular university towns is often much sought after, so you may even find you have a waiting list of students hoping to move into one of your properties.
The image of rowdy students is a misconception and the vast majority of students look after their accommodation for fear of losing their deposit should any damage occur. Student tenants are all but guaranteed and as long as you invest in good quality student accommodation in the right areas, you will have no problems finding new student tenants once your existing tenants move on to bigger and better things.
You will have fewer void periods when you market your properties at students. Void periods are something no landlord wants: an empty property is not earning money and soon becomes a target for squatters and vandals. Once a student is settled, they are unlikely to want to leave until the end of the academic year and even during the holidays.
Therefore students will pay rent just to keep their property until the new term starts.
Are there Different Types of Student Tenants?
Most investors find that property investment opportunities aimed at the high end of the student market offer a better return on investment than cheaper, more basic properties.
Target Foreign Students
Foreign students want top quality rental accommodation with every modern convenience and they are more than happy to pay for the privilege of luxurious self-contained bedroom/studies with designer en-suite bathrooms, flat screen TVs and a host of additional extras. This type of student accommodation is always in demand and with the numbers of foreign students increasing all the time, you are assured of a safe investment.
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
For more information, please call 0114 276 0462 or email us at sheffield@belvoirlettings.com
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