People who like to invest in property are considered to have an edge over others. The phenomenal success brought forward by real estate sector has once again proved that property continues to earn even you are not working. We have realized it for our own benefit that world is becoming more of a single country and people are moving freely all the time to different places and students in particular. Student accommodation concept has reached unprecedented heights and more emphases are being laid as how to make it evergreen like any other industry. Student accommodation concept would always be there as long as we have educational institutions and universities offering overseas programs.
There are few things to take care of when one is putting his or her property on the market for student accommodation. First things first and one shall think of taking professional services. The easiest way out is to appoint a managing agency and let them take care of things in order. The best part is that you need to be bothered about the technical aspect and how to find suitable candidates for student accommodation. These professionals are equipped with sufficient amount of techniques to put your interests forth than any other thing. 'Joint and several liability" clause is another such term that ensures peace of mind to owners as he or she has not to run after every single tenant but a fixed amount would be set as a whole. Now, all tenants would be responsible individually or collectively to pay it on monthly basis.
Another important thing to be mentioned over here is that to involve parent's participation. It is the single most influential factor before striking the deal. It is good to have fair expectations from each other. All such and more measures are meant to decrease the ratio of failed cases and bring hope and light to this industry. Student accommodation prospect is vast in nature and certainly future belongs to it. Be it students or the owner, student accommodation agreement shall serve both the sides. At the end, we are talking about students who would eventually pay for the services and landlords are supposed to provide basic facilities.
So, things should be in tandem and work accordingly. The last bit is about the number of people who are going to accommodate as it is again a debatable issue. It is always good to clear the doubts first and then walk together peacefully. Student accommodation is an interesting discussion to have as it is still relatively new and progressive in nature. So, better are chances our when we talk more and participate hugely in numbers. The only way to succeed is by asking more and after.
Article Source: http://EzineArticles.com/?expert=Simon_Mahoney
Showing posts with label International. Show all posts
Showing posts with label International. Show all posts
Tuesday, June 8, 2010
Student Accommodation helping the real estate market
The term student accommodation has been referred to the requirement of students wanting to pursue higher education and seeking a place to settle down in the main cities where such education is available. Many leave their homes in the hinterland and make their way into the main cities where they know the standards of education are much better. Many foreign students also make their way into cities that are known to provide good higher education standards are therefore require help in the form of student accommodation.
The trend is now very clear. Many individuals are pursuing higher education and are willing to relocate which is leading to this requirement. The captive accommodation already available with the universities and educational institutions are proving to be insufficient to hold so many students and they have no choice but to look elsewhere in the city. While some of the students do manage to shack up with seniors, others have to look for student accommodation facilities.
This demand for student accommodation has led to the creation of student areas in some of the towns. These are typically lodgings of low rent, are near to the education institutions and city centre and are within striking distance of leisure facilities such as gymnasiums, pubs, cinemas and sports clubs. These areas are often not fancied by their neighborhoods, due to negative experiences in the past with some of the students who may not have followed the discipline and good manners that are required when you stay close to civilian neighborhoods. Very often students have indulged in vandalism and rioting as a form of protest. Some of the students have also been involved in drug trafficking, prostitution and other anti social activities leading to a lack of confidence and faith in them. On other factor for this apathy is the poor upkeep of the facilities thanks to the changing nature of the residents each year.
There are such student areas in almost all major cities that provide good standards of higher education. The only positive point for residents close to such student accommodation areas is the fact that this demand for housing has led to a spurt in the real estate prices, contrary to perception. The demand from students is so strong for good housing that they are willing to pay a higher price for the accommodation. This has led some smart landlords looking to rent out their property to brand them as "student houses" in their advertisement so that they are able to attract the right student population for their property and rake in the spoils.
Some cities are however making attempts to provide a much better standard of student accommodation by providing some luxury electronic gadgets so that they can get the students to move in there. They know that students can pay more thanks to the high level of disposal income they have with them due to high student grants and loans.
The Leeds Metropolitan University is the largest university and students flock to this university for their higher studies. They find Student Accommodation Leeds with assistance from Letting agents Leeds for this purpose.
Article Source: http://EzineArticles.com/?expert=Simon_Mahoney
The trend is now very clear. Many individuals are pursuing higher education and are willing to relocate which is leading to this requirement. The captive accommodation already available with the universities and educational institutions are proving to be insufficient to hold so many students and they have no choice but to look elsewhere in the city. While some of the students do manage to shack up with seniors, others have to look for student accommodation facilities.
This demand for student accommodation has led to the creation of student areas in some of the towns. These are typically lodgings of low rent, are near to the education institutions and city centre and are within striking distance of leisure facilities such as gymnasiums, pubs, cinemas and sports clubs. These areas are often not fancied by their neighborhoods, due to negative experiences in the past with some of the students who may not have followed the discipline and good manners that are required when you stay close to civilian neighborhoods. Very often students have indulged in vandalism and rioting as a form of protest. Some of the students have also been involved in drug trafficking, prostitution and other anti social activities leading to a lack of confidence and faith in them. On other factor for this apathy is the poor upkeep of the facilities thanks to the changing nature of the residents each year.
There are such student areas in almost all major cities that provide good standards of higher education. The only positive point for residents close to such student accommodation areas is the fact that this demand for housing has led to a spurt in the real estate prices, contrary to perception. The demand from students is so strong for good housing that they are willing to pay a higher price for the accommodation. This has led some smart landlords looking to rent out their property to brand them as "student houses" in their advertisement so that they are able to attract the right student population for their property and rake in the spoils.
Some cities are however making attempts to provide a much better standard of student accommodation by providing some luxury electronic gadgets so that they can get the students to move in there. They know that students can pay more thanks to the high level of disposal income they have with them due to high student grants and loans.
The Leeds Metropolitan University is the largest university and students flock to this university for their higher studies. They find Student Accommodation Leeds with assistance from Letting agents Leeds for this purpose.
Article Source: http://EzineArticles.com/?expert=Simon_Mahoney
Sunday, May 2, 2010
Student landlords benefit form the shortage in rental houses
By Samul Swan
At last there is some good news in the UK rental property markets as demand is now outstripping supply. This points to a positive future for landlords as their property should continue to be in high demand.
One consequence of the increased requirement for let property is that as a landlord you should be able to find a tenant more quickly. According to the Association of Residential Lettings Agents during the first quarter of 2010 the average vacant period for rental property dropped to just 3.6 weeks.
Student landlords in popular university towns and cities may find that the property shortage is even more acute. Higher demand for property should fuel higher rents and fewer periods of vacancy for let property - all of which is good news for student landlords.
Get better rental income on your let property
Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than enter the workforce. There are now 2.4 million students in the UK, many of which will be looking for let property. During the past nine months there has been a 45% increase in demand for student housing and the trend looks set to continue. By tapping into this market, student landlords can expect to see a better gross return on their investment.
Generally speaking, rents are higher for student property than a comparable buy-to-let property - often by as much as 10%. A landlord with the right type of property in the right location for students can look forward to better yields on their rental income. It is anticipated that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to rise, making these locations ideal for student landlords.
Keep property vacancies to a minimum
Any landlord will tell you that one of their main priorities is to keep periods of vacancy to a minimum. One of the advantages of letting property to students is that the house or flat will have tenants for nearly all of the year. Moreover, the landlord will know months in advance if the property will be need for the following academic year, enabling them to plan ahead.
How u-rooms.com can help
If you have a property to let within easy reach of a UK university, let u-rooms.com help you tap into the student rental market. Students are currently starting to look for a flat or house share for the next academic year so now is a great time to move into this market. At u-rooms.com we offer a very competitively priced, yet comprehensive service, designed to make your life easier and help you find the right tenants quickly. Simply visit us at u-rooms.com and list your property. For more information about marketing rental property contact or to list your property contact u-rooms.com.
Article Source: http://EzineArticles.com/?expert=Samul_Swan
At last there is some good news in the UK rental property markets as demand is now outstripping supply. This points to a positive future for landlords as their property should continue to be in high demand.
One consequence of the increased requirement for let property is that as a landlord you should be able to find a tenant more quickly. According to the Association of Residential Lettings Agents during the first quarter of 2010 the average vacant period for rental property dropped to just 3.6 weeks.
Student landlords in popular university towns and cities may find that the property shortage is even more acute. Higher demand for property should fuel higher rents and fewer periods of vacancy for let property - all of which is good news for student landlords.
Get better rental income on your let property
Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than enter the workforce. There are now 2.4 million students in the UK, many of which will be looking for let property. During the past nine months there has been a 45% increase in demand for student housing and the trend looks set to continue. By tapping into this market, student landlords can expect to see a better gross return on their investment.
Generally speaking, rents are higher for student property than a comparable buy-to-let property - often by as much as 10%. A landlord with the right type of property in the right location for students can look forward to better yields on their rental income. It is anticipated that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to rise, making these locations ideal for student landlords.
Keep property vacancies to a minimum
Any landlord will tell you that one of their main priorities is to keep periods of vacancy to a minimum. One of the advantages of letting property to students is that the house or flat will have tenants for nearly all of the year. Moreover, the landlord will know months in advance if the property will be need for the following academic year, enabling them to plan ahead.
How u-rooms.com can help
If you have a property to let within easy reach of a UK university, let u-rooms.com help you tap into the student rental market. Students are currently starting to look for a flat or house share for the next academic year so now is a great time to move into this market. At u-rooms.com we offer a very competitively priced, yet comprehensive service, designed to make your life easier and help you find the right tenants quickly. Simply visit us at u-rooms.com and list your property. For more information about marketing rental property contact or to list your property contact u-rooms.com.
Article Source: http://EzineArticles.com/?expert=Samul_Swan
Saturday, December 5, 2009
Luxury student digs prove a lucrative investment
From The Times December 3, 2009
Kaya Burgess
It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.
Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.
Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.
“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”
Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”
The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.
“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”
The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.
On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.
Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.
Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.
Kaya Burgess
It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.
Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.
Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.
“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”
Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”
The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.
“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”
The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.
On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.
Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.
Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.
Thursday, December 3, 2009
Corporates squeeze market for private student landlords - UK
Posted on December 1st, 2009 by steve
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
Friday, October 30, 2009
High demand for rental property in Scotland from student market
Written by Ray Clancy
Thursday, 29 October 2009 09:14 -
Buying property and renting it out to students is proving profitable for landlords in Scotland as demand is high and rents stable, according to letting agents.
Research from Lettingweb.com shows that demand from students is high and contrary to
popular opinion students generally make excellent tenants.
'The lettings market in Scotland has seen rental values decline somewhat during the first half of this year. High stock levels have forced landlords to reduce their expectations without the reward of securing a faster let. Demand for student flats, on the other hand, always seems to outstrip supply,' said Richard Matthews, marketing manager.
He explained that properties close to university campuses and near attractions such as night clubs and pubs are easy to let. 'In Glasgow, the highest demand for student flats is, as expected, in the city centre and West End. Generally students will aim to be as close to their campus as possible,' said Matthews.
Gone are the days when students were rowdy and got behind with their payments. 'As rents are more often than not now being guaranteed by parents, the standard of student flats nowadays is very high. The stereotype for students is mostly gone as they want to rent something of good quality,' added Matthews.
In Edinburgh all the student properties for the new academic year were rented out before the start of the summer. 'We could easily have let many, many more if we had them on our books. We don't even put a waiting list up for properties because the response is so immense every year. There are some students who will start to ask in January about properties for their next academic year as they are desperate to get a good home in a desirable location in the city,' said Colette Murphy, director at Braemore Property Management.
'We've seen rent falls across other parts of the rental market in recent months as there has been greater competition among landlords for tenants. However, student flats are definitely proving the exception to the rule, as these tenants are happy to pay a higher rent to secure a good property,' she added.
The company reckons that if you have a property in an area close to the university such asNewington, the Southside or Marchmont then it will prove popular with the student market. A three or four bedroom flat or house is renting for between £325 and £450 per double room per month depending on the quality of the property and its location.
Thursday, 29 October 2009 09:14 -
Buying property and renting it out to students is proving profitable for landlords in Scotland as demand is high and rents stable, according to letting agents.
Research from Lettingweb.com shows that demand from students is high and contrary to
popular opinion students generally make excellent tenants.
'The lettings market in Scotland has seen rental values decline somewhat during the first half of this year. High stock levels have forced landlords to reduce their expectations without the reward of securing a faster let. Demand for student flats, on the other hand, always seems to outstrip supply,' said Richard Matthews, marketing manager.
He explained that properties close to university campuses and near attractions such as night clubs and pubs are easy to let. 'In Glasgow, the highest demand for student flats is, as expected, in the city centre and West End. Generally students will aim to be as close to their campus as possible,' said Matthews.
Gone are the days when students were rowdy and got behind with their payments. 'As rents are more often than not now being guaranteed by parents, the standard of student flats nowadays is very high. The stereotype for students is mostly gone as they want to rent something of good quality,' added Matthews.
In Edinburgh all the student properties for the new academic year were rented out before the start of the summer. 'We could easily have let many, many more if we had them on our books. We don't even put a waiting list up for properties because the response is so immense every year. There are some students who will start to ask in January about properties for their next academic year as they are desperate to get a good home in a desirable location in the city,' said Colette Murphy, director at Braemore Property Management.
'We've seen rent falls across other parts of the rental market in recent months as there has been greater competition among landlords for tenants. However, student flats are definitely proving the exception to the rule, as these tenants are happy to pay a higher rent to secure a good property,' she added.
The company reckons that if you have a property in an area close to the university such asNewington, the Southside or Marchmont then it will prove popular with the student market. A three or four bedroom flat or house is renting for between £325 and £450 per double room per month depending on the quality of the property and its location.
Monday, September 7, 2009
Students warned of fake landlords
A Londonderry father has warned students looking for accommodation for the new term to beware of bogus landlords advertising on the internet.
The man, who wanted to remain anonymous, said his son paid a deposit to a man who claimed to have a house for rent in south Belfast last year.
He was among a group of students who lost hundreds of pounds in the scam.
The National Union of Students said there has been a rise in the number of such cases.
The students' parents contacted Foyle MLA Martina Anderson after they realised they had been caught up in the rental scam.
The Sinn Fein representative said the families had paid a deposit of almost £800.
Unanswered calls
She added: "They spent weeks trying to get paperwork and keys, both of which never materialised.
"The owner never answered their calls, the contact ran cold and they lost all their money."
She urged those seeking student accommodation to exercise caution.
"For many of those students it will be the first time they have lived outside the family home and looking for accommodation can be a daunting task particularly in a new area.
"I would appeal to students and their parents to go through well established letting agencies and check the track record of private landlords who advertise on the internet before they sign any tenancy agreements or hand over large deposits."
Friday, August 28, 2009
Should I be a student landlord? UK
Posted by Catherine Deshayes on Wednesday, August 19, 2009
Many large portfolio landlords have started as student landlords letting their property to hoards of marauding students. The question for many parents of students looking to go to university this year or other property investors or landlords is should I join the ranks of student landlords?
Growing student letting market
There is no doubt that the student letting market continues to buck the trend in other areas of the economy. The resulting down turn has resulted in record numbers of students applying to enter higher education this year.
The latest figures show that application for degree course are up by 57,000 on last year as the economic downturn results in many students putting off work or ‘upskilling' in an attempt to avoid the dole cue.
According to Knight Frank the UK student population has grown consistently over the last 10 years. Total student numbers have grown from 1.8 million in 1997 to 2.5 million in 2007. Savills expect this to hit three million full and part time students by 2014.
Growth has been driven in the main by domestic UK undergraduate demand. However, there is a trend to rising numbers of foreign student, with participation of overseas students at UK universities rising 67 per cent over the past decade.
Knight Frank research shows that in 1997 they accounted for 11 per cent (international students) and 21 per cent (postgraduates) of all students; by 2007 these figures had increased to 15 per cent and 24 per cent respectively.
Both international students and postgraduates are more likely to opt for purpose built private student housing rather than shared houses. Foreign student numbers are expected to grow from 15 per cent of all students in 2008 to 21 per cent by 2018.
Knight Frank in their Report produced this year estimated that London alone requires an additional 100,000 student bedspaces.
Student lettings niche letting market
Letting to students is a very niche part of the private lettings market requiring particular skills and an approach. It's more complex and potentially involves the landlord complying with a greater deal of regulation than a standard buy-to-let.
This is because many student lets will be classed as a house in multiple occupation (HMO). Landlords letting certain types of HMOs are now required to be licensed by their local authority. In order to obtain an HMO licence landlords will have to meet certain fire standards and accommodation standards that can be expensive to comply with. For example this can often involve having a newly installed fire alarm system and fire escape costing tens of thousands and also potentially taking value of the property because of it would then be no longer attractive to the owner occupier market.
Therefore for many first time landlords they should avoid investing in a property that is a potential HMO. The easiest way around this is to ensure that they only let their property to 4 or less student tenants as a rental property can only be classified as a HMO if let to 5 or more tenants.
In addition, student lets require a greater amount of supervision and management input. This is because student properties have a greater turnover of tenants than many buy-to-let properties occupied by professional tenants.
In addition many student lets will be required to be furnished. The level of furnishing is often specified by the university and landlords will need to comply with standards set out by the student accommodation office in order to be featured on the universities accommodation list circulated to many students looking for accommodation.
Students can make good tenants:
A student landlord can fit more student tenants into a property. A 3 bed house will frequently accommodate 4 sharers - and that's without letting the cupboard! This is more intensive than a let to a single tenant or even a house of professional sharers which can have a potential benefit on the investment yields.
Student tenants aren't quite as fussy. Students particularly undergraduates have tended not to be as fussy as professional tenants. These type of tenats are more prepared to put up with slightly outdated kitchens and colourful bathroom suites than design conscious professional tenants.
However, landlords shouldn't be complacent; with the advent of more and more private halls standards are rising and mature and foreign students often demand professional levels of accommodation.Student tenants sometime pay rent in advance.
Some student tenants or more accurately their parents will often pay upfront for each semester or term. This is handy for a landlord as they have the rent in advance with which to pay any mortgage or other costs.
Student tenants are bright. This in theory makes dealing with them and sorting out problems easier. Catherine Bancroft-Rimmer, author of The Landlord's Guide to Student Letting comments "You do get exceptions," "but once you've explained why you need them to do something they are usually quite willing to go along with it." From my experience there is nothing worse than trying to resolve a problem with a thick tenant. The phrase "like pulling teeth" comes to mind.
Student rental accommodation supply
There is no doubt that in many areas supply of rental accommodation by student landlords has failed to keep up with demand. This is especially true in London where a recent report by Knight Frank highlighted a shortfall of 100,000 bedspaces in London alone. However, like many aspects of buy-to-let investment the fundamentals of any market are essentially local.
Therefore a prospective student landlord should ensure that they do their own local research by talking to local rental agents and University Accommodation Offices before factoring in their expected rents to their investment calculations.
The competition amongst student landlords renting to students in some areas is a very strong. Some areas are already oversupplied according to Simon Thompson Director of Accommodation for Students.
"Leeds is quite overpopulated with student accommodation, as are the Fallowfield and Withington areas of Manchester."
Universities and increasingly private developers are constructing purpose built halls of residences. These aim for the top end of the market but none the less it is worth a landlord talking to the local planners to find out what is in the pipeline.
Student rent levels
The strong demand for student lettings and the shortage of supply has resulted in rents growing 10per cent in London where the shortage is particularly acute as London is the premiere centre for student accommodation in Europe with over 40 universities. In the rest of the UK rent level growth was less strong growing by only 8 per cent but still outpacing the rest of the residential investment market where rents actually fell by almost 2 per cent over the last year according to the Rentindex.
The latest figures on student rents released by accommodationforstudents.com, the UK's No 1 student accommodation website, reveal that the average UK weekly student rent continues to rise. At £62.40, their figure is up 1.5 per cent on last year and 19 per cent on the comparable figure five years ago. AFS figures are based on rents from over 51,000 properties across 75 cities in the UK and includes figures from purpose built student accommodation and private landlords.
The ideal type of property for a student landlord
Student tenants generally prefer to go into Halls for the first year after which they then look for accommodation in groups of 4 or 5. Our research shows that different student groups have varying accommodation requirements.
Post graduates for instance frequently prioritise a peaceful working environment and their demands are very similar to that of professional renters. Undergraduates are more likely to request accommodation located close to entertainment facilities and town centres and are more willing to live in larger shared properties.Location is often a key factor. Students like to be near each other. Chris Horne Editor of expert landlord website Property Hawk says, "If you can find out where the ‘cool' bars and places to hang out are; then a property close by will definitely have a marketing advantage. Essential is that your property has good access by public transport to the University campuses as well as the night life and basic shops and services. Not all students have cars!"A three bedroom property is probably ideal. This is because with a little bit of work, it should be possible to convert one of the ground floor rooms to an additional bedroom thereby allowing you as the landlord to accommodate 4 students. If you provide accommodation for 5 or more students, then you will very likely have to obtain a licence for your property as a House In Multiple Occupation (HMO).
This in itself is not a disaster in that it will probably only cost a couple of hundred pounds from the local authority. However, what could be more difficult is that in order to obtain the licence the Local Authority may insist on certain minimum standards in the property. Examples of this are sinks in every bedroom along with other expensive fire safety measures.
These works will not only be costly but potentially they will detract from the attraction of your property to the owner occupation market when you come to sell. To avoid this most student landlords are best advised at looking to keep the maximum number of student renters to 4. The exception to this might be where a landlord was looking at making it into a more involved commercial undertaking in which case buying an already licensed HMO would probably be cheaper and make more sense.Victorian terraced properties often provide ideal accommodation for a student landlord because of the generous room sizes. Large spacious rooms are particularly appealing to students as these are often more than just a place to sleep. In theory they will be places of study and also their private space to retreat to when all the partying and communal living gets too much! Landlords should therefore look for properties with 3 generous double rooms and one living room that can be converted to this.
Insuring your student rental property
Insurance is also an issue. Finding the right landlord insurance is essential as not all insurance companies are keen on student tenants and they may impose higher excesses or charge higher premiums where students are involved.
It is absolutely essential to ensure that a landlord insurance broker is fully aware of the position if you let to students. This is because many insurers consider that the type of tenant to be a "material fact". This means that if there is a claim and you have not disclosed this, they can quite legitimately seek to repudiate a claim.
Written by www.propertyhawk.co.uk
Many large portfolio landlords have started as student landlords letting their property to hoards of marauding students. The question for many parents of students looking to go to university this year or other property investors or landlords is should I join the ranks of student landlords?
Growing student letting market
There is no doubt that the student letting market continues to buck the trend in other areas of the economy. The resulting down turn has resulted in record numbers of students applying to enter higher education this year.
The latest figures show that application for degree course are up by 57,000 on last year as the economic downturn results in many students putting off work or ‘upskilling' in an attempt to avoid the dole cue.
According to Knight Frank the UK student population has grown consistently over the last 10 years. Total student numbers have grown from 1.8 million in 1997 to 2.5 million in 2007. Savills expect this to hit three million full and part time students by 2014.
Growth has been driven in the main by domestic UK undergraduate demand. However, there is a trend to rising numbers of foreign student, with participation of overseas students at UK universities rising 67 per cent over the past decade.
Knight Frank research shows that in 1997 they accounted for 11 per cent (international students) and 21 per cent (postgraduates) of all students; by 2007 these figures had increased to 15 per cent and 24 per cent respectively.
Both international students and postgraduates are more likely to opt for purpose built private student housing rather than shared houses. Foreign student numbers are expected to grow from 15 per cent of all students in 2008 to 21 per cent by 2018.
Knight Frank in their Report produced this year estimated that London alone requires an additional 100,000 student bedspaces.
Student lettings niche letting market
Letting to students is a very niche part of the private lettings market requiring particular skills and an approach. It's more complex and potentially involves the landlord complying with a greater deal of regulation than a standard buy-to-let.
This is because many student lets will be classed as a house in multiple occupation (HMO). Landlords letting certain types of HMOs are now required to be licensed by their local authority. In order to obtain an HMO licence landlords will have to meet certain fire standards and accommodation standards that can be expensive to comply with. For example this can often involve having a newly installed fire alarm system and fire escape costing tens of thousands and also potentially taking value of the property because of it would then be no longer attractive to the owner occupier market.
Therefore for many first time landlords they should avoid investing in a property that is a potential HMO. The easiest way around this is to ensure that they only let their property to 4 or less student tenants as a rental property can only be classified as a HMO if let to 5 or more tenants.
In addition, student lets require a greater amount of supervision and management input. This is because student properties have a greater turnover of tenants than many buy-to-let properties occupied by professional tenants.
In addition many student lets will be required to be furnished. The level of furnishing is often specified by the university and landlords will need to comply with standards set out by the student accommodation office in order to be featured on the universities accommodation list circulated to many students looking for accommodation.
Students can make good tenants:
A student landlord can fit more student tenants into a property. A 3 bed house will frequently accommodate 4 sharers - and that's without letting the cupboard! This is more intensive than a let to a single tenant or even a house of professional sharers which can have a potential benefit on the investment yields.
Student tenants aren't quite as fussy. Students particularly undergraduates have tended not to be as fussy as professional tenants. These type of tenats are more prepared to put up with slightly outdated kitchens and colourful bathroom suites than design conscious professional tenants.
However, landlords shouldn't be complacent; with the advent of more and more private halls standards are rising and mature and foreign students often demand professional levels of accommodation.Student tenants sometime pay rent in advance.
Some student tenants or more accurately their parents will often pay upfront for each semester or term. This is handy for a landlord as they have the rent in advance with which to pay any mortgage or other costs.
Student tenants are bright. This in theory makes dealing with them and sorting out problems easier. Catherine Bancroft-Rimmer, author of The Landlord's Guide to Student Letting comments "You do get exceptions," "but once you've explained why you need them to do something they are usually quite willing to go along with it." From my experience there is nothing worse than trying to resolve a problem with a thick tenant. The phrase "like pulling teeth" comes to mind.
Student rental accommodation supply
There is no doubt that in many areas supply of rental accommodation by student landlords has failed to keep up with demand. This is especially true in London where a recent report by Knight Frank highlighted a shortfall of 100,000 bedspaces in London alone. However, like many aspects of buy-to-let investment the fundamentals of any market are essentially local.
Therefore a prospective student landlord should ensure that they do their own local research by talking to local rental agents and University Accommodation Offices before factoring in their expected rents to their investment calculations.
The competition amongst student landlords renting to students in some areas is a very strong. Some areas are already oversupplied according to Simon Thompson Director of Accommodation for Students.
"Leeds is quite overpopulated with student accommodation, as are the Fallowfield and Withington areas of Manchester."
Universities and increasingly private developers are constructing purpose built halls of residences. These aim for the top end of the market but none the less it is worth a landlord talking to the local planners to find out what is in the pipeline.
Student rent levels
The strong demand for student lettings and the shortage of supply has resulted in rents growing 10per cent in London where the shortage is particularly acute as London is the premiere centre for student accommodation in Europe with over 40 universities. In the rest of the UK rent level growth was less strong growing by only 8 per cent but still outpacing the rest of the residential investment market where rents actually fell by almost 2 per cent over the last year according to the Rentindex.
The latest figures on student rents released by accommodationforstudents.com, the UK's No 1 student accommodation website, reveal that the average UK weekly student rent continues to rise. At £62.40, their figure is up 1.5 per cent on last year and 19 per cent on the comparable figure five years ago. AFS figures are based on rents from over 51,000 properties across 75 cities in the UK and includes figures from purpose built student accommodation and private landlords.
The ideal type of property for a student landlord
Student tenants generally prefer to go into Halls for the first year after which they then look for accommodation in groups of 4 or 5. Our research shows that different student groups have varying accommodation requirements.
Post graduates for instance frequently prioritise a peaceful working environment and their demands are very similar to that of professional renters. Undergraduates are more likely to request accommodation located close to entertainment facilities and town centres and are more willing to live in larger shared properties.Location is often a key factor. Students like to be near each other. Chris Horne Editor of expert landlord website Property Hawk says, "If you can find out where the ‘cool' bars and places to hang out are; then a property close by will definitely have a marketing advantage. Essential is that your property has good access by public transport to the University campuses as well as the night life and basic shops and services. Not all students have cars!"A three bedroom property is probably ideal. This is because with a little bit of work, it should be possible to convert one of the ground floor rooms to an additional bedroom thereby allowing you as the landlord to accommodate 4 students. If you provide accommodation for 5 or more students, then you will very likely have to obtain a licence for your property as a House In Multiple Occupation (HMO).
This in itself is not a disaster in that it will probably only cost a couple of hundred pounds from the local authority. However, what could be more difficult is that in order to obtain the licence the Local Authority may insist on certain minimum standards in the property. Examples of this are sinks in every bedroom along with other expensive fire safety measures.
These works will not only be costly but potentially they will detract from the attraction of your property to the owner occupation market when you come to sell. To avoid this most student landlords are best advised at looking to keep the maximum number of student renters to 4. The exception to this might be where a landlord was looking at making it into a more involved commercial undertaking in which case buying an already licensed HMO would probably be cheaper and make more sense.Victorian terraced properties often provide ideal accommodation for a student landlord because of the generous room sizes. Large spacious rooms are particularly appealing to students as these are often more than just a place to sleep. In theory they will be places of study and also their private space to retreat to when all the partying and communal living gets too much! Landlords should therefore look for properties with 3 generous double rooms and one living room that can be converted to this.
Insuring your student rental property
Insurance is also an issue. Finding the right landlord insurance is essential as not all insurance companies are keen on student tenants and they may impose higher excesses or charge higher premiums where students are involved.
It is absolutely essential to ensure that a landlord insurance broker is fully aware of the position if you let to students. This is because many insurers consider that the type of tenant to be a "material fact". This means that if there is a claim and you have not disclosed this, they can quite legitimately seek to repudiate a claim.
Written by www.propertyhawk.co.uk
Tuesday, August 18, 2009
No royal treatment for Princess Eugenie
The Journal
STUDENT digs are not known for being plush, but the ones in Newcastle have been given the royal seal of approval.
Princess Eugenie starts her degree at Newcastle University next month and has taken up a place in a £96-a-week hall of residence.
The 19-year-old, who is sixth in line to the throne, says she wants to be treated just like any other student and will be sharing a living room and kitchen with five other undergraduates.
The Queen’s granddaughter will have her own small en-suite bedroom with a single bed, wardrobe, chest of drawers and desk.
Her choice of accommodation is in stark contrast to her big sister, Beatrice, who turned down digs at London’s Goldsmiths College last September and moved into an apartment in St James’s Palace. However, Eugenie’s move to the halls won’t be cheap, as she’ll be joined by a team of Metropolitan Police bodyguards, costing more than £250,000 a year.
The guards, who will be with the princess around the clock, are relocating to Newcastle. Last month, two detectives travelled to the city with Eugenie to look around the campus and inspect her future accommodation.
Eugenie plans to study for a BA in English and history of art. A number of her friends are also thought to be coming to Newcastle.
Fortunately for the party-loving princess, the university also boasts one of the best student social scenes in the country with six bars to chose from.
Eugenie achieved two As in her A-levels in art and English literature and a B in history of art. Her gap year saw her partying in places as far flung as Australia, South Africa, Cambodia and Goa.
A friend said: “She chose Newcastle because it offered a great degree course and it seems a really fun place to go. Eugenie is a very down to earth girl who hates using her title and she was adamant that she wanted to live in halls with her friends. She just wants to be treated like any other undergraduate.
“The issue of police protection is totally out of her hands. She hates it as much as anyone.”
Eugenie is not the first royal of her generation to take up a place in halls of residence. Prince William spent his first year in university accommodation when he went to St Andrew’s.
On the princess’s move to Newcastle, the city’s Lord Mayor, Mike Cookson, said: “Newcastle is a beautiful, lively, safe and welcoming city, which is justifiably popular with students.
“We’re very pleased that the princess will have the opportunity to experience all of this for herself.”
A Newcastle University spokesman said he couldn’t comment on any individual student.
STUDENT digs are not known for being plush, but the ones in Newcastle have been given the royal seal of approval.
Princess Eugenie starts her degree at Newcastle University next month and has taken up a place in a £96-a-week hall of residence.
The 19-year-old, who is sixth in line to the throne, says she wants to be treated just like any other student and will be sharing a living room and kitchen with five other undergraduates.
The Queen’s granddaughter will have her own small en-suite bedroom with a single bed, wardrobe, chest of drawers and desk.
Her choice of accommodation is in stark contrast to her big sister, Beatrice, who turned down digs at London’s Goldsmiths College last September and moved into an apartment in St James’s Palace. However, Eugenie’s move to the halls won’t be cheap, as she’ll be joined by a team of Metropolitan Police bodyguards, costing more than £250,000 a year.
The guards, who will be with the princess around the clock, are relocating to Newcastle. Last month, two detectives travelled to the city with Eugenie to look around the campus and inspect her future accommodation.
Eugenie plans to study for a BA in English and history of art. A number of her friends are also thought to be coming to Newcastle.
Fortunately for the party-loving princess, the university also boasts one of the best student social scenes in the country with six bars to chose from.
Eugenie achieved two As in her A-levels in art and English literature and a B in history of art. Her gap year saw her partying in places as far flung as Australia, South Africa, Cambodia and Goa.
A friend said: “She chose Newcastle because it offered a great degree course and it seems a really fun place to go. Eugenie is a very down to earth girl who hates using her title and she was adamant that she wanted to live in halls with her friends. She just wants to be treated like any other undergraduate.
“The issue of police protection is totally out of her hands. She hates it as much as anyone.”
Eugenie is not the first royal of her generation to take up a place in halls of residence. Prince William spent his first year in university accommodation when he went to St Andrew’s.
On the princess’s move to Newcastle, the city’s Lord Mayor, Mike Cookson, said: “Newcastle is a beautiful, lively, safe and welcoming city, which is justifiably popular with students.
“We’re very pleased that the princess will have the opportunity to experience all of this for herself.”
A Newcastle University spokesman said he couldn’t comment on any individual student.
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