Insights for landlords in London about renting property to international students.
Being a landlord is not the easy gravy train that some people believe it to be. It’s not just about getting tenants and collecting the rent.
New laws and increased taxation resulting in ever-decreasing profits are driving some landlords to consider whether they still have a future in the buy-to-let business. However, other landlords are turning to a market that is proving to be very profitable: the student market.
For students, living in university halls is one option, and shared accommodation is another option, such as an HMO (House in multiple occupation). These types of property can provide lucrative rents to those landlords who are willing to make the changes required to transform a property into an HMO. Each bedroom can be rented separately, meaning they will receive multiple monthly rents.
There is an increasing number of overseas students looking for accommodation in London, and these students could be even more profitable for some landlords. Landlords who let to international – and UK – students can expect some of the best yields when compared to letting to other types of tenants.
The student market is one we encourage landlords to tap into, especially as this market is due to expand by close to 50% in the coming years.
In many aspects, overseas student requirements are the same as those from the UK, but there are some areas where international students’ needs are different.
As international students have no credit rating in the UK, they find it difficult to get access to utilities, broadband, and phone accounts. To help them overcome this, many landlords include the cost of these as part of the rent.
Newcomers to this country are used to different property arrangements, and students may have no idea of how UK terms and conditions work. They might need to have things explained, such as their rights and responsibilities as tenants, and may need extra support settling into the property.
However, landlords in central London should be aware of an even more lucrative section of the international student market.
This niche is the luxury student sector of the market. These students tend to be of Asian or Russian origin who come to the UK to study. They want to live in central London, and in a recognised location.
International students with more money to spend on accommodation might be looking for an apartment. So-called ‘luxury’ students tend to opt for new-build apartments in upmarket residential developments and can be happy to spend up to £5,000 a month for the right accommodation.
But for this money, they will demand accommodation of a very high standard. The entertainment systems should be top of the range, the furnishings stylish and of good quality, while free WiFi is a must. Some students will expect a cleaning service to be included in the price.
Students will pay more for accommodation that is close to a university. But unlike young professionals, most students will want to be in shared accommodation, living close to amenities and night-time entertainment. Central London has all these things, but you may need advice in finding the right property or apartment.
For more information regarding the requirements of international students contact us
at Plaza Estates.