Students are the Best Tenants!!

The Telegraph has just reported that students make the best tenants. Some of us may find this surprising. After all, surely they are prone to irresponsible behaviour, house parties, lower hygiene standards and break-ins. Well, I guess those small inconveniences are worth it when the rental yields are so much higher. Also, it is generally the parent that guarantees the rent payment so shortfalls and delays are less likely.

Image and Source Information: GVA Research Report, Who Owns Student Housing?

In general, student rentals start at no less than £100 per week. In London, this of course increases to £178 per week. And with university applications on the increase (3.1% in 2013) these figures are only expected to grow.

But how does one look into purchasing or renovating a property for student let purposes? Importantly, Dawson & Associates reminds you that a House in Multiple Occupancy (HMO) license is required. It means that the property is intended for the residence of 3 or more people who are not from the same household. In some cases, even if the house is small or you intend to home less than 3 people, you may still need this license.

Although obtaining the license should be a fairly straightforward matter, there are restrictions and conditions that must be adhered to. Dawson & Associates recommend professional advice on these matters if you are to save time and expense. With a professional eye, it is easy to see whether a property is suitable… AND whether it is likely to provide good return on your investment.

If you get it wrong, not only will rentals be harder to come by but the fines can be up to £20,000 so a little planning from the start is very worthwhile.

Having been in the property business since 1970, Dawson Surveyors’ services are not only knowledgeable and reliable but also very conclusive. It is essential that any property project is undertaken considering all building, conversion, legal and financial aspects. We offer free initial advice that will help you to decide whether to take a potential property investment any further.

For more information, please feel free to contact usdirectly.