Private landlords have long seen student accommodation as a wise investment. This isn’t surprising as an HMO in a popular student area has outstanding revenue potential. Multiple tenants in the same property mean multiple income streams.
But being a student landlord involves more than simply buying a property. You have to find the tenants to fill the rental every academic year. There's plenty of competition with other landlords and the extra licensing involved with being a student landlord can be a bit of a headache. But there's no doubt the effort can be rewarding.
However, to be a successful student landlord you do have to find the right rental. So, where are the best towns or cities if you're looking to invest in student property? We've chosen five locations you may want to consider.
This thriving Yorkshire city has a growing economy and boasts three universities. The city is home to the University of Leeds, Leeds Beckett and Leeds Trinity universities. This means there are over 23,000 students looking for digs every year. That's an awful lot of demand which needs servicing. Properties are excellent value and according to figures from Simple Landlord Insurance a student let in Leeds returns a yield of 4.17%.
Unsurprisingly, the capital is the largest university city in the UK, there are ten universities and dozens of colleges. Students from within the UK and around the world flock to London to study. All of which presents buy to let landlords with an investment opportunity. Of course, the cash outlay will be far higher than in other parts of the country, as you can expect to pay up to five times the price you'd pay for a comparable property in Leeds for example. Yet you could still expect a yield of 4.5%.
With the massive University of Birmingham, there is plenty of demand for student lets in England's second-largest city. When you take into account there are also three smaller universities in the city, it's obvious private landlords should be able to take advantage of a steady stream of potential tenants. A buy to let landlord could pick up a city-centre property for just under 200K, a yield of over 5% would be realistic.
A city which has seen a considerable rise in the local economy in recent years and is a vibrant and popular destination for students. Over 13,000 young people study in Bristol and with the city enjoying excellent public transport links, there are several popular student areas for landlords to choose from. The buzzing city centre and the more expensive Clifton are hugely popular, and landlords can expect a yield of almost 7% with terraced properties available for under £300,000.
The northern powerhouse offers exceptional investment opportunities for buy to let landlords. The prestigious University of Manchester along with the Metropolitan and Salford universities are a magnet for those looking for higher education. And with over 25,000 students in the city, the demand for quality accommodation is always high. This very student friendly city has many areas the savvy buy to let landlord can look for bargain properties. Chorlton, Didsbury and Fallowfield are just three of the most popular student areas, but there are many more. And with an expected yield of nearly 8.5%, Manchester is the place to be, not only for students but for buy to let landlords as well.
Student landlords can find tenants fast by listing their property with MakeUrMove the online letting platform bringing landlords and tenants together.