Recently, investing in student accommodation has become more popular, thanks to the high demand for student properties among students and the increasing rate of studying abroad. The number of students, worldwide, is exceeding the number of available student accommodation options in the student housing market. As the student housing market is getting bigger and more competitive, you might be tempted to join the party. Student property investments are the most popular type of investment in the real estate market as it has several guaranteed benefits. If you are wondering whether to invest in a student property or not, we are here to help you figure it out. Here are some reasons why you should consider investing in a student property.
The student lets market has become a growth market around the globe. As education is essential to each and every child, students, as well as their parents, tend to seek to study abroad more and more these days, hoping for high-quality education and hopefully a better future. Therefore, the student accommodation business has become more popular and the demand for student housing options increased. This happened on a very quick scale and the student accommodation business gained the attention of every clever investor in the market.
Student properties tend to be cheaper to buy than any other type of property due to several reasons, including the location of the property. Most of the investment options for student accommodation are sold off-plan to the investor, meaning, the whole unit can be offered at a lower price than the property’s actual cost after its construction. Also, the properties tend to be part of a cluster, which makes them usually cheaper than other properties.
The students are the perfect type of tenants for various reasons, including that they often pay a higher rent than other types of tenants, like families. Landlords of student properties can make greater earnings than other landlords of other types of properties. A single property could be rented to several tenants as separate rooms within a unit. Also, students tend to rent for short periods, as long as the semester or the academic year lasts. Consequently, the rental contract or rent itself will vary with each and every semester or rental period as the prices generally increase.
If you manage to pick a student property within a student city that has a couple of well-reputed universities or colleges, then you are guaranteed to have regular tenants. University cities tend to have a steady demand for student housing options which will put your student accommodation in a constant rental state and give your property fewer possibilities to remain unoccupied. And sure enough, a fresh intake of scholars yearly means more and more potential tenants for you.
You can buy a whole property or a large house and transform it into student accommodation and rent it to numerous students per year or across semesters. This investment can have great success potential if you manage to pick a student accommodation in a suitable location within a student city and make flexible leases for your tenants, among other elements to consider. Nevertheless, investors need to be careful with the location or area they buy their properties in, as some areas have become like student ghettos. This may put a limit on the student housing market in other areas of the city. If you want to know more about the business, you can look for some other ways to advance in the student housing market.