How to invest in student housing
Arthur looks at how to invest in the student property market.
Investing in property is by no means a risk free enterprise. Student property, however, does provide reliable source of tenants because students continue to go to university even during an economic decline.
Selecting a property
According to the Independent, urpose built student accommodation is increasingly being preferred over the tradition of renting a house. While these are undoubtedly the more expensive option, PBSA’s offer a more reliable source of income since rents are typically charged on a per student basis.
PBSA yields are around 50% higher than that of residential housing and is currently strongly backed by the government due to housing shortages. Investments can be bought fully managed, making the job of the property owner much easier.
Location is of high importance when selecting a student property to invest in. Research by the Select Property Group found that students at Russell Group universities are willing to pay a lot more for accommodation in order to be closer to campus and local amenities.
The vast majority of students rely on walking, cycling or public transport. This means that a premium should be placed on being close to the university’s campus, rather than parking space.
Furthermore, focusing on quality is also important. Trends show that students moving towards high-quality, spacious accommodation more so than ever before, offering new opportunities for purpose built off-campus accommodation which is often more luxurious than university halls.
Invest in a Fund
There are less companies who choose to fund student property than other sectors however there are a few which are open to private investors.
GCP Student Living will invest in modern, purpose-built private student rental accommodation with a focus on accommodation in London.
Researching your financial options is important because investing in PBSA is seen as a business venture. Therefore, most mortgage lenders do not lend against this type of rental property.
Invest in a Developer
Private investors can gain direct exposure to companies that develop student housing. Unite Group is the largest student housing manager and developer in the UK and one of a handful of publicly listed student housing providers
As we all know, students are extremely tech friendly and such technology encourages them into communicating with you better; helping you manage all your student properties easily and effectively with minimum fuss and maximum efficiency.
Here at Arthur Online we offer that cloud based solution. We will provide you with an online platform that helps you maintain complete control over your student property portfolio. Everything is accessible in the same system, so you don’t have to retain separate records for tenancy agreements, rent payments, contractor visits etc. Your tenants can track any raised issues, through the free mobile apps we offer, while you can connect them to a suitable contractor which will hold their own free app.
With Arthur online, You will be at the centre of everything, connecting all the dots.
You can also request a demo from one of the members of our team and see the magic through their shared screens.
Follow our social media platforms to keep an eye out for Arthur’s blogs and all the announcements with the latest property news!
