For a big reason, getting high yields the student accommodation letting means the landlord would gain extra benefits. Although the student accommodation has outperformed during the last financial year 2012 among the other property sectors and thus admired to be the best performing UK property investment in 2012 with increase in up to 5% rents as well as more than 10% annual average returns.
As mentioned above there is an increase of 5% in rents, all this has happened because of the increase in property values hence the students are over burdened by 5% increase in rents and they are paying more than £200 rent per week on an average basis in London as compared with the other cities and towns.
Although there has being a considerable increase in rents all over the UK as per increase in the property values but still the students belonging to the towns and cities outside London are less in trouble and paying less rents in between £125 to £150 depending upon the area they used to live.
Experts say that the student housing investment is dual favorable property investments to invest in those appeals them so much, the capacity and outspread of this type of sector along with the high rents more than any other property letting.
Student property is an ideal property investment sector which has a lot of potential and advantages. No matter what the property condition is, usually the older houses with a lot of rooms are preferred by the student property investors but the investors are bound to furnish the property to gain reputation because as good as the reputation of the landlord is more and more supply of future lets would be.
Secondly the landlords are free to fit a number of students as much as their property allows that clearly means they have an advantage of getting more and more rents other than that of the rents paid by professional tenants those do not wish to stay in a prison with a lot of people in a shared rooms or room boxes.
The landlords usually prefer to hire any letting agent and property management firm that not only advertise the vacancies for the tenants but also manages the property and collects rents from the tenants on their behalf. Letting agents provide all the legal consultation and documents along with the tenancy agreement usually consisting of the full period of student semester or less.
Having property in a congested area would not let the students to rid of or skip to because they are not highly concerned about the crowded areas but they prefers to bound with their proposed budget plans assigned for residence. They do not require a high cost luxurious room or house instead of catching up a cheap one.
My recent article “How many features a rental property must have” deals with so many points which encourage the investors to invest in such an attractive locality that helps their property to gain more worth. For example if your property is situated within one or half mile of an institution preferably university, your property would gain reputation and a good number of applications to let surprisingly and hence result in capital growth in all means, the raise in rents as well as the increase in property price.
In the end I must add something which is not as sweet as honey for the investors. Student properties also require an HMO (house in multiple occupations) license that refers to the rules and regulations set by some council to limit the number of student housing to a specific number to maintain the balance of family housing.
So the article cites the hot topics of the student housing investments which provide a definite number of success and rents to the landlords and maintain a handy inflow to their capital as well as portfolio.