Investing in property isn’t just a big decision; it is likely to be a lot of small choices. For some investors, location is everything, but there is much more to think about when buying a property. The type of student you wish to let to is crucial in making a profit, and you also need to choose the right standard of accommodation to appeal to this market.
It is understandable that many investors consider the student population to be of interest when it comes to buy-to-let. While there is a significant level of demand for rental property from people from all sorts of backgrounds and households, there is a consistency surrounding the rental market that offers landlords confidence.
More landlords are looking at the student letting market
It would also be fair to say that the perception of students is evolving. Some landlords would have avoided student letting in the past because of concerns over tenants keeping the property in good condition. While there are still many students living away from home for the first time, which can pose problems for the tenant and landlord, there is a growing awareness of the need to maintain property in excellent condition.
While there is a lot of criticism for social media, especially surrounding youngsters, many students know the importance of maintaining a good appearance and creating a positive impression with others. The cleanliness of their rental accommodation is an issue that more students are concerned about, which is positive news for landlords.
In a city like Coventry, with a notable student body, investors can purchase property in confidence. There is going to be a high level of demand for rental accommodation, which makes this a natural destination to consider investing in.
There are different types of student accommodation to consider
Of course, you will want to think about what kind of student accommodation is best to buy. An investor can choose from a purpose-built student accommodation, referred to as a PBSA or houses of multiple occupations, HMOs.
These are two good options to consider although landlords should be aware of regulatory changes regarding HMOs. Landlords are required to obtain a licence when the property is occupied by at least five people who hail from at least two separate households. Initial suggestions believe that 177,000 HMOs will be affected by this change in England alone. This change may cause some investors and landlords to focus on PBSA as opposed to managing the more complicated system surrounding HMOs.
Of course, there is a decision to be made when investing in a PBSA. Some landlords prefer the cluster flats while for others, studio apartments are more appropriate. It is possible for landlords to mix and match their portfolio, and those who are unsure of what option is best for them may consider this move for their initial foray into the Coventry student letting market.
However, no matter what level of experience you have in letting to students in Coventry, we are always happy to offer guidance and support. At Studentcircle lettings, we are Coventry student lettings accommodation specialists, so please get in touch to find out what your next move should be in the market.