Becoming a property investor is an excellent way to make money and capital gains. Many of the world’s most successful millionaires have used property as their starting point to opulence, and you can do the same if you choose the right investments.
One of the best plans of property investment is in student accommodations. There are numerous benefits over traditional properties: they are seldom empty, they generate a guaranteed source of revenue, and it can be simple to find another tenant. As with any type of investment, there are a few words of warning to keep in mind.
The Reasons Behind Student Accommodations
Universities are evolving quickly and college enrolment is at its highest. There are even waiting lists for acceptance. On-campus housing is at an all-time high, and it paves the way for an off-campus housing boom. Investors are reaping the rewards of this growing market by seizing available rental properties. A home that’s for sale near the campus is sure to be snatched up immediately.
The Importance of Location
Location is just as important to student accommodations as it is to traditional forms of property. You can charge a sizeable rent the closer a property is to campus. However, the further that property is away from the university, the less you will be able to charge for rent. The ideal location is across the street from campus because students will pay a considerable amount of money to walk a short distance to class. If you’re unable to obtain a close property, you should try to locate a facility that is within close proximity to the campus via walking or biking. A property that is over a few miles from school should only be chosen as a final resort.
Amenities Are Crucial
To make your property stand out from all the rest, you will need to add a few great selling points like free Internet service, a dishwasher or laundry facilities on the premises. Students are very social and a kitchen or lounge would be advantageous amenities for a property.
Individual apartments and houses bring in more money than shared residences. A multiple residency that rents out rooms and has a shared common area may have a larger number of occupants, but the rent per room is typically lower.
If you are thinking about renting out your property to multiple individuals at one time, you may want to contemplate signing a separate lease with each occupant. This will cover your interests and bind each person to the property. If one of the tenants fails to pay their rent, you will at least have the other occupants bound to the terms of the lease.
Even if you’re property is full, you are still going to want to advertise your property. This will help you to have a waiting list of people handy in case an occupant moves out. Your property will never be empty, and you can have someone waiting in the wings and ready to move in immediately.
Lastly, be careful when selecting your investment property. There’s nothing more rewarding then sitting back and watching your investment grow.
If you are selling or letting a house then try an online estate agent.