Does anyone rent to students? Or rent out generally?

Louise1234

Hello!

I am looking into possibly investing some money in buy to let. Does anyone rent out to students? There are a couple of properties near a local university and I know I wouldn't have problems renting them out but would like advice from someone who does it already.

I know about not having a place too big or it will become a HMO and all the hoops to jump through for that etc.

I worry about the place being trashed and damaged.... knowing what students are like and how shamefully I didn't really have the understanding of the impact of my own actions as a student!

Honest advice would be great! Not looking for a quick return more of a long term retirement/ pension investment (I am 29 now).

Or alternatively how have people found renting out in general? My mum did it and had a mixed bag, some really good tenants and some no paying / refusing to move out ones!

Thank you

foxy-stoat

You really need to crunch the numbers if you are going into business as a landlord, get yourself over to landlordzone on another site, theres isre information on there that has already been asked.

I rented out my place a few years ago and due to tax changes I sold it - get good luck and good tenants and do your sums properly then its an ok idea, get back tenants or have a few void periods, issues with the building or get your tax a bit wrong and your in for a world of pain and stress.

If you are looking at a long term/pension type investment then you maybe should think about pumping the money into a pension.

need_an_answer

There was a similar thread a few weeks ago.
The OP is an expat looking to invest in student market here,whilst your situation is not an expat most of the general comments would be the same

https://forums.moneysavingexpert.com/discussion/5853389/how-good-bad-is-this-plan


There are plenty of LL's on the boards here,me included,and each will have target markets.I have to confess the student one can be a hard one and not for me however other LL's may have differing views.

Have a read of some of the other threads on the previous 2 or so pages recently that should help you decide if the business is for you or not

Do you already own a property?
If so one of your biggest set up costs will probably be the additional stamp duty that will be payable.

What has drawn you to the student market?

agrinnall

How much are you looking at paying for an investment property?

How much of your own money do you have to invest?

Will you need a mortgage?

If so, how much will you need, and what are the chances of you being able to get it (do you already own another property)?

DaftyDuck

I rent to students. Graduate students, and I only rent to a self-selected group (same Department as I - occasionally now- work in). I rent out good, even high quality houses, in excellent condition, one Grade II listed , and get them back in almost exactly the same condition, without fail. I am partly protected from problems by the departmental link, partly by the colleges also backing me and their students, and by very, very careful selection of tenants. The colleges, as a last resort, guarantee the rent, and guarantee repairs as well - and will virtually hang out to dry any student who breaches the terms. Mine don't - I don't even take a deposit these days; they behave, and so do I! Oh, if I were bad, the colleges would hang me first as well, then hang me out to dry - upside down and disembowelled...

It does, however, mean I am aware of many other landlords who let to students, and even more students who rent. Particularly those in the other University in the city... I have seen the wrecked rooms, the filth, the smell, the utter lack of respect for other's property, the complete lack of understanding that it could matter, and then the vanishing act, and hear of the legal battles and stress for months afterwards ... from some tenants, very much not the majority, but far too many for me to want to stomach that.

Without the above protection and conditions I have, I wouldn't, under any circumstances whatsoever want to let to students, and wouldn't recommend that route to anyone, especially not someone already well-versed in the field of letting. It's an area prone to huge stresses and even more vast losses unless you run it as a cutthroat business.

I repeat, as someone who rents to (graduate) students, just... don't.

There are far more attractive markets to let to.