With the number of students attending university higher than ever, the demand for rooms and properties for rent by students has increased exponentially.
Why is the student property market in Nottingham good for investment?
The government’s move to lift the cap on the number of places a university can offer in the United Kingdom has led to a boost in the number of applicants, and as a result, an increase in the number of students looking for a home while they complete their studies.
There has also been a huge jump in the number of foreign students coming from outside the European Union, with numbers rising by 50% over the last decade. These students are seeking good value properties that they can share with other students and are willing to pay for convenient locations and space.
Students seeking affordable but satisfactory accommodation near to their University have created a unique opportunity for those looking to invest in property to rent out as a private landlord. With only about a third of all city accommodation being available to students in the UK, students are willing to put money into finding good accommodation.
Nottingham, in particular, provides an excellent market for getting involved in the student accommodation sector. With supply running low on places for students to live, landlords can take advantage of the growing need for student accommodation and make some serious money.
What investment options are there for student properties in Nottingham?
The student rental market in Nottingham provides a good opportunity for those looking to invest in houses and apartments that will make money consistently. Investors can purchase a home designed for student accommodation in a good location in Nottingham for around £170,000, renting out all four bedrooms on a house in multiple occupation, or HMO.
What should you consider before renting out a student property?
Investing in student property is a longer-term option, so potential landlords should be aware of this before putting their money into a property. However, the properties are unlikely to be left empty, as students – particularly students from overseas – need a home all year round. Rates for student properties are also higher than for a single family or individual renting a property.
Houses should be viewed before purchase, and considerations should be made for how a student will view the home. Does it have adequate communal areas? One of the key factors for a successful student property investment is location. Students are willing to walk a certain distance to their university, but properties closer to their centre of learning will be more desirable. Aim for a 30-minute walking distance if possible. Research the area to make sure it is in a safe location, as students will do their own research to find more stable areas.
The rent should be inclusive of all bills and have a steady and comprehensive broadband option. Students are more likely to select an easy rent payment, rather than having the hassle of sorting out the bills each month and splitting the fees multiple ways. Ensure that your rental price is fair – though students from overseas might be willing to pay a higher rent, UK students are more likely to go for good-value properties that provide the best package of price and location.
Do your research on HMO and property laws. Landlords should not be caught out with sub-par properties that are not designed for multiple occupations, as students are not likely to go for accommodation that is unsuitable for their needs or unsafe.
Taking the next steps
By bearing these factors in mind, renting out a student property in Nottingham is a worthwhile investment for those looking to make long-term financial gains. Consulting a property professional and using a reliable property agent is advisable for making the best investment possible in a student property.