In the present recession, with many people finding it difficult to secure lending for buy-to-let property investments due to the element of risk involved, property companies are advising landlords to take advantage of the greater financial security of renting to students.
As companies such as Braemore Property Management point out, students are a more reliable source of income in the current climate, due to the shortage of suitable student housing creating a huge demand, which makes them prepared to reserve the flats in order to ensure accommodation for the start of the academic year. In addition, with the recession affecting the jobs market, many are staying in university, and student accommodation, for longer.
“There’s a traditional shortage of student flats as many landlords are unwilling to rent to students due to their preconceptions about student behaviour. However students are some of the best tenants you can get,” said Braemore director Collette Murphy, before adding:
“Their parents will act as guarantors, they are willing to sign up to leases for the entire year, and they are willing to pay a fair price for a good property in a good area.”
In addition, as Chas Roy-Chowdhury of the ACCA has pointed out, renting to students can also offer tax benefits, such as capital gains tax relief if one of the students living in the accommodation is a child of the property owner. Thus it is advisable for landlords to seek advice from professional accountancy services to clarify these issues.