Is The Student Rental Market Dead!?
Estimated Read Time: 4 minutes
Editor: Shaun Callacher
Renting to students has been a very attractive investment to landlords over the years, for the following reasons:
- Higher rental income compared to letting a property out to a single family or person.
- Rent paid upfront to the landlord, often compensated by the tenant’s student loan.
- 1 month void (or less) on a whole property within a 12 month period.
- Tenancy agreements signed 6+ months in advance of move in day (Students often sign up for a property in January knowing they won’t be moving into the property until the following September).
The list could go on. But one thing is for sure: I think we can all agree, renting to students can be a very attractive investment.
However, after recently reading a post from the BBC entitled: ‘Top Universities To Offer Full Degrees Online In 5 Years’
In light of this information, with the ever changing world of technology and growth of online based courses, could there be a major decline in the number of students choosing to live within close proximity to the university?
If a student could live and study anywhere in the world, would they choose to live in cold and dull England? Or, would they decide to ‘live it up’ somewhere else. Somewhere, where they can get to sip Pina Colada on a beach in the evenings, and by day, study on their portable laptop? – I know which one I would rather do!
Add to the fact, the amount of large investors creating purpose built student accommodation in major university cities. It could become very difficult to compete.
So for this reason, I personally think we could see a decline in the student rental market for private landlords over the coming years, but only time will tell...
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