Thinking of becoming a student landlord? With the first semester of University nearly upon us, many buy-to-let investors are embarking on the student lettings market. Many people enter the property arena as student landlords; in most cases their children go to university and the parents/investors buy a property in the area of the university and rent it out to their children and their friends. If you’re thinking of embarking on the buy-to-let investment ladder for the forthcoming student year, Glenn Armstrong has the following advice on what you need to be aware of:
Distance – the distance from the University to the rental accommodation is the most important thing to consider – a 2 minute walk is going to be far more appealing than a 10 minute walk – the closer the better.
Know Your Market – beware of cities where custom-built student accommodation is prevalent or is in the pipeline (such as Leeds, Liverpool, Birmingham and Bournemouth), as this will lead to too much competition and letting the property could be more difficult.
Tenancy Deposit Scheme – when letting make sure you register the deposit with the tenancy deposit scheme – in a recent case a student landlord was made to repay a whole year’s rent to his tenants as he failed to register their deposit when the tenancy started.
Utilise the rooms – to maximise on rental income make sure you utilise all the rooms, for example student tenants need a kitchen but are not that fussed about having a lounge, this could therefore be used as a further room for [rental income. You can actually turn a 3 bed property into a 6 room multi-let especially if it is an end terrace – you just need to know how!
Be Aware of Fire & Safety Requirements – prospective landlords should visit the local council website for their area and details of the specs required are listed there; here you will find 2 categories for HMOs – licensable and non-licensable. Bear in mind that if a property has 3 storeys, you have 3 months from the date when the 5th tenant moves in to notify and apply for a licence. A 2 storey building in most areas doesn’t need a licence, but you will need to check this with the local authority. Although requirements may differ slightly between these types of properties, both need hard-wired fire alarms and emergency lighting. When doing HMOs make sure all common areas are tiled and not carpeted, shingle the gardens and put membrane underneath to keep low maintenance but use 23mil shingle or larger (if use anything smaller, cats will use it!)
ROI – the rule of thumb is that a multi-let will make you 3 times the profit but will be 10 times the hassle! Make sure you take a deposit and guarantee from the tenant’s parents, this way when the tenants move out, their parents will oversee the move!
If on the other hand you’re a student looking to rent a property there are some pitfalls you could do with avoiding. Below are some tips and advice for students renting their first properties.
Glenn’s Tips for Students
Glenn Armstrong is a 49 year-old millionaire whose UK portfolio of 193 properties is worth in excess of £30 million. In 2004 he began to invest in property and has since gone on to share his knowledge with investors up and down the country in their dream to become truly financially free; at least 26 of his students are now equity millionaires.
So many of us are afraid about making investments but we believe it’s all about having the right mindset, but any fears can be set aside when you use the above buying criteria. Glenn teaches buy-to-let investors the art of successful investing. To [sign up for a free 5 part e-course on how to buy property without spending any of your own money please visit our website www.glennarmstrong.com.
To interview [Glenn Armstrong please contact Natalie Whitlock|http://www.fullportion.com] at [Full Portion Media|http://www.fullportion.com] on 0845 225 1500 or email email@example.com.
To get your eight FREE videos simply pop your primary email address in the box below. After confirming your email, your first video will arrive in your mail box.
One thing, you will need to add my email address to your address book. By doing, this you avoid any of the emails I send you ending up in your spam folder. One final thing; I hate spammers. So I will NEVER share your email with any third party.