Student accommodation is one of the most successful areas of the rental sector today. Research shows that billions have been invested in the area in the last two years, and as increasing numbers of students achieve high GCSE and A level results, the numbers attending university and requiring suitable rental accommodation will continue to rise.
Along with studio apartments, HMOs are a very popular form of student accommodation. Students are no longer prepared to accept run down HMO properties, so it is essential to invest in quality buildings to be sure of attracting good tenants.
Location is a major factor. Look at the local amenities such as grocery shops, bars and cafes. The more there are the better, as many students do not have their own transportation. Additionally, look for somewhere close to transport links for those that need to commute to uni throughout the week and visit their parents on weekends.
When it comes to decor, remember that students want a blank canvas so that they can give the property its own character. Avoid imposing restrictions on hanging pictures. When students live alone for the first time they do not want to pay for a place that they cannot make their own or exercise their independence.
The majority of students will require furnished accommodation. Invest in clean and comfortable furniture that is in good condition and avoid filling the property with gadgets and appliances. These are easily broken and can result in costly replacements.
Your rental amount needs to allow for approximately nine months of term time and cover you for a 12 month period. With careful budgeting, you can ensure your mortgage repayments are always met and enjoy high investment returns on your HMO.
Student accommodation can lead to high investment returns, which makes it an extremely popular asset class. However, like any investment, it is important to research and ensure your property fits your particular business model so that it can fulfil your financial needs. We can help you with every aspect of HMO and property management in Hillingdon and across the rest of London. From transforming an existing property and finding a suitable investment opportunity to handling maintenance, rent collection and more, our service covers all the important issues. Call us for help with HMOs and let us help you secure long term financial solutions from student accommodation.