Location, Location, Location for Student Landlords
The number one consideration for cash conscious student landlords is location – something so important you have to say the words three times!
Opening a student house in multiple occupation (HMO) in the right location is the first step to making a handsome profit from your investment.
So how do you choose the right place?
It’s not as easy as it sounds with more than 150 universities and specialist higher education colleges dotted around the country.
One good idea is to follow the money. By that, look at where the corporate investors like Unite and UPP are going, because they have teams of experts researching the market.
Their criteria for a good student investment property is simple –
- Choose a place with plenty of students. That may sound obvious but some university cities are not overflowing with tenants. Not many student landlords could make a living off Writtle College, Chelmsford, Essex, which has a meagre 915 students. London is the main student centre – taking in 21% of the total UK student population at 48 different colleges and universities. That’s a tidy 460,000 students and a number that easily exceeds the level of beds supplied in halls of residence. Even Unite, the UK’s biggest private student landlord, only has 44,000 beds nationwide.
- Choose a place with more than one college – Aligning your student landlord fortunes with one seat of learning may work in the short term, but if that institution changes policy or opens new halls that soak up the available tenants, then your fortunes fluctuate as well.
- Choose a place close to a transport hub that services more than one college or university. Make yourself convenient – if you are close to a bus and rail station, you’re also likely to be close to shops and other amenities as well.
That’s three reasons why location, location, location is important to student landlords – and three good reasons your student shared house should turn a profit.
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Knight Frank's Property Report 2014: an insight into the value of Student Property.