Even though there has been an overall increased demand for student housing the world over, the UK has shown some exceptional statistics, especially in terms of yields. Warwick has especially been affected quite positively by this change in dynamics and it is no wonder that investors are flocking the county to find out how they can be a part of the surge.
At 82 miles away from London, Warwick is quite a distance from the capital, not that this is a bad thing. Investors are gradually moving into areas that are a distance away from the capital to take advantage of untapped opportunities. The student population in Warwick is also growing steadily, making this city a choice location for student housing investments.
What Students Need
Let’s face it; students do not need much when it comes to accommodation. Ordinarily, all they require is a space big enough for a bed, desk, bathroom and toilet facilities and perhaps shared common rooms like kitchen, living room and dining area.
Other factors that you want to keep in mind include security, proximity to amenities and social hangouts as well as the condition of the units. As much as students prefer cheaper housing, they do not go for dilapidated houses that are falling apart. Ensuring that your building is well maintained and serviced as required will assure you tenants all year round.
What You Need To Know About Student Housing
As a prospective investor, there are facts and figures which you will be looking out for before you make the plunge and invest. These facts and figures guide your decision making process and gives you a general feel of what you stand to gain should you get into the business of student housing.
The first fact you should know is that landlords with student lets currently earn more than their counterparts in regular housing. Currently, the NLA places the figure at about 10 percent per year. What this means is that you can earn a lot more as a student landlord than you would as a regular one.
You will also be please to know that students rarely default on their rental payments. This sounds surprising to many investors because students are generally considered ‘high risk’ tenants. The truth is they are simply not. In cases where students default on rental payments, their guarantors (parents and guardians) are usually liable and they make payments on their behalf.
Very few landlords have problems of void periods i.e. periods when the housing units remain vacant. There are ways of dealing with void periods, including getting summer students to rent them out to. Letting agencies can really help you to get such information.
A Little Information about Warwick
The town of Warwick is rich with history. It was founded by William the conqueror and is beautifully positioned on the river Avon. There are many reasons why any investor would be interested in this charming town including the following:
1. A fast growing economy
2. Diverse population
3. Reasonable proximity to London
4. Several good schools
5. High employment rates
6. Amazing nightlife and social scene
Some good schools in Warwick include the following:
1. University of Warwick
2. Warwickshire College
3. North Warwickshire and Hinckley College
4. King Edward VI College
Colleges bordering the town of Warwick include:
- City College Conventry
- Henley College Conventry
- Hereward College
- Northampton College
- Solihull College
- South Leicestershire College
- South Worcestershire College
- Worcester College of Technology
Why Warwick Is a Great Destination for Investing In Student Housing
Warwick has been touted as one of the best places to start up a student housing venture. Before getting into the business it is important that you understand why. Doing this helps you to anticipate the gains you will make by starting up student housing units in the town.
1. Low cost of setting up shop
Student housing need not be an expensive affair. All students really need is enough space to get by as they attend lectures daily. Constructing student housing is very affordable and therefore what you put into the venture quickly comes back to you once you begin renting out.
2. Optimistic predictions
Even though it is not set in stone, several experts foresee that the student housing market in the UK is going to keep growing steadily at least for the next decade or so. This is good news for any potential investor who is considering starting up in Warwick or buying property for let in the same area.
3. High population of students
Warwick is a fast growing town. As it expands, more and more learning institutions are cropping up in the area. This is steadily boosting the student population in the town. A high student population is what every student housing investor wants to hear.
4. Expanding city
London is crowded with all types of businesses and ventures and it is no wonder that investors are opting to look for opportunities outside of the city. This is causing the city to expand towards areas which may initially have been thought of as too removed from city life. Warwick is one of these towns which are set to benefit greatly from these developments.
Tips for Landlords
Getting accredited and listed as a credible landlord is very important in this business. As a first time investor this may prove difficult to do all on your own. The best way to go about is to find a letting agent. They usually have existing relationships with the schools in the town and will have an easier time getting you on the list. Students refer to these lists when
Being in good stead with the town council can only work positively for your business. Make sure your buildings always pass inspections and that you have all the licensing required by the law. You avoid a lot of trouble by keeping things legal and in order.
Make sure that all necessary contracts are drafted and signed by all the parties involved. They can come in handy in case of disputes.
Student housing is an extremely lucrative venture to get into at the moment. When properly managed and maintained, a student housing investment can earn you a comfortable income without you having to break your back looking after the business. All you have to do is take care of the legalities involved and keep your tenants happy.