September 25, 2023
Why Investing in Private Student Accommodation Is Worth the Expense

Why Investing in Private Student Accommodation Is Worth the Expense

Despite the perils usually associated with investing in private student accommodations, the business is still in high demand. With over 4 billion in investments last year alone, it’s clear that many believe this is the way to go!  But whether investing is a good decision entirely depends on your objectives

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Issue 324 : Jan 2025

September 25, 2023

Why Investing in Private Student Accommodation Is Worth the Expense

Why Investing in Private Student Accommodation Is Worth the Expense

Despite the perils usually associated with investing in private student accommodations, the business is still in high demand. With over 4 billion in investments last year alone, it’s clear that many believe this is the way to go!  But whether investing is a good decision entirely depends on your objectives and requirements. However, we get to make a case for it.  Take a company like ASN Capital Student Living, for instance, and how it has steadily climbed the ladder in everything student accommodations. This only goes to show that there could be hope in the industry. Here are reasons why investing in private student accommodations is worth the expense:  Universities alone are not able to house all students as they no longer have the infrastructure in place to do so. This is a fact! As campuses admit thousands of students, it may become difficult to offer them all accommodations as there aren’t enough rooms available, especially for first year students. This is where private accommodation comes in! Students can partner with each other and rent a room to alleviate the costs. A campus operates on a rotational basis. If a few students go home for a break, others enroll, and vice versa. Having accommodations is a move that will generate finances year in and year out. Even better is that students will still attend school during a recession, making these accommodation units recession-proof.  Because private accommodation is a buy-to-let investment property, it will yield a higher net income than a traditional but-to-rent property. This primarily works well for houses in multiple locations.  Purpose-built accommodation serves the same purpose that student halls do. They come with sturdy areas, WiFi, standard rooms, and more. They are also strategically located near campus and are close to shopping areas, work opportunities, and local nightlife, making them attractive to students.  Custom-built student accommodation includes property management. While the university itself may provide it, you may choose to hire expert managers to oversee your property. It comes with an.   “on-ground” investment approach that’s both active and proactive.  There is nothing more disappointing than tenants who are constantly moving out of your property. But with students, it’s different. As it takes a couple of years to complete a degree, you can expect students to rent your apartments long-term. Investing in student accommodation means tenant consistency, one thing that many landlords may not have.  While it may be hard to follow up with students regarding rent, it’s best to retain their parents’ content information and career on payment terms directly. Every parent wants their child to live a comfortable campus life; thus, you can be rest assured that they’ll act as rent guarantors. In case of any mishaps, you can always reach out to them.  You don’t have to worry about a dwindling amount of rent. With student accommodations, the rent amount is consistent all across the UK. This doesn’t give one tenant the upper hand over the others. It means that students will pay a specific minimum for any accommodation unit that they choose.  Generally, students are less demanding than adults. They won’t need a lot of fancy fixtures and may be patient enough when it comes to repairs. This puts you at a significant advantage as a property owner as you can ensure them without worrying.  If you decide to let go of your property later on, you can sell it at a higher price than what you paid. You only need to wait a few years and scoop up the profits.  Summing Up Investments are not a one-size-fits-all solution. They are diverse, as they come in different shapes and sizes. However, when investing in student accommodation, you’ll be spoilt for choice.  The fact that property investment is associated with decent earnings makes it a significant financial choice that will yield results and give students what they are craving!  Also, this kind of property investment comes with a 0% Stamp Duty rate that represents significant savings compared to typical buy-to-let residential units. 

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