Is it time to take a fresh look at students lets?

According to a recent report in Letting Agent Today, the student rental market is booming again. Yields have increased and, with pressure growing on supply across the PRS as a whole, demand for student flats and houses is riding high.

Paragon Bank's research, as quoted in the article, shows that student lets are currently out-performing other rentals. They have been delivering a mean gross yield in England of 6.15% to 6.6%.

Traditioannly it has been a sector mainly served by corporate student accommodation providers, especially in big towns and cities. Only 1 in 8 properties on the market is owned by buy to let investors.

Many landlords prefer to avoid this sector. Students have a reputation for being unreliable, annoying their neighbours and leaving the properties they rent in a mess at the end of their tenancy.

This is not always a reputation that they deserve. Landlords need to take up references and check upon guarantors. They are then more likely to find suitable tenants.

Paragon recommended that potential investors look beyond the best known university towns and cities due to the fact that smaller locations are likely to have more of the traditional type of student accommodation, such as shared houses, with lower property values and, subsequently, higher yields. It is, however, very important to remember that any property you let must be fully compliant with health and safety regulations and must meet all the same requirements that any other group of tenants will expect.

How PlanetRent can help

Our automated rental platform PlanetRent can help you to make sure that any new tenancy runs smoothly. It is suitable for all types of tenant, including students.

All tenant checks are carried out quickly and easily, sign-up is straightforward, and repairs and maintenance contracts are logged and dealt with efficiently.

It is pay-as-you-go and makes your tenants’ rental journey easy and painless.

If you are thinking of renting to students, why not check it out today.