If a landlord owns property in a university town then they have the choice to let the property to students or non-students. Students often have the reputation for partying and not looking after property. Yet is this the case with modern students?
Many major university towns such as Manchester are increasing their number of student places. These students are looking for quality accommodation and are willing to pay extra for accommodation that has added facilities such as wi-fi and cleaning services. Many overseas students come from wealthy families and want luxury accommodation which they will pay high rents for. Modern students may well be relied upon to pay the rent on time and respect the property in which they live.
Most students want to live in houses shared with several other students or in purpose-built flats that have communal areas such as kitchens and lounges.
Although students may not live in their residence all year, rental yields can be high. For example, in Manchester, landlords can achieve 8% rental yields for student accommodation, which can be higher yields than non-student accommodation.
Tenant turnover is generally higher than non-student tenants, so there is more administration work involved. University towns have letting agents that specialise in student accommodation who can find tenants for landlords. There are also agencies that will administer property from attracting tenants to preparing leases and collecting rent. Agencies can also arrange maintenance work.
Commercial mortgages are available to finance the purchase and conversion of houses to student accommodation.