Student accommodation 'offers higher rental yields' for landlords
News Category: Industry News
Published: 12-May-2008
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Student accommodation represents a good investment opportunity for buy-to-let landlords, offering high rental yields and strong tenant demand.
That is according to an article published recently in the Telegraph, which advised landlords not to put off by "prejudiced" perceptions of students as messy tenants.
Citing figures from buy-to-let mortgage lender Paragon, the newspaper revealed that average rental yields from student accommodation are around eight per cent, due to the fact that there could be a greater number of tenants per property.
Niall McTurk, a landlord and student letting agent, explained to the Telegraph: "The big benefit of letting to students is the higher rent levels. This is mainly because, as long as there is a kitchen, a bathroom and a living room, every other room can be a bedroom.
"In York, a three-bedroom semi with two reception rooms wouldlet to a family for 795 pounds a month, but let it to four students and you might achieve 70 pounds a week from each."
He added that the student rental market does not have any "void periods" as tenancies typically last a year.
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