Student Letting

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    Student Letting

    Can someone please guide me in property investment as I am very new and inexperienced in this field?
    I have very little savings which I am thinking of investing in buy to let property. With my savings it is difficult to find buy to let property that cover 25% deposit and after long search I have managed to find some studio apartment inside student hall in Birmingham exclusively for renting students and those apartments are managed by the university or other third party private company.
    Those apartments have shared kitchen with own bedroom with ensuite with long lease.
    I was told by the selling estate agent that there are approximately £3000 per annum charges on those apartment including ground rent, service charge and full management fees including finding student.
    The rent will cover the cost of interest only mortgage, ground rent, service charge and management fees.
    My goal is to sell this property back in 5 -10 years time for profit. . Do you think it is worth investing on those properties? If I have to buy normal property, it will take me another 2 to 3 years to save deposit.
    Those properties are very cheap and affordable for me and am wondering if there are any loopholes although selling agent will not disclose any information. Has anyone had any experience or knowledge?

    If I've understood you correctly... Once you've paid the costs you are left with no profits. There's a few things you might want to look at:

    What do you expect the market to do in that area?
    ​​​​Are you prepared to make a loss?
    How much do you earn externally - this is important as if you are a higher rate tax payer you'll only be able to deduct some of the costs... Essentially you'll end up paying tax, even if you don't make a profit
    Is the likely scenario better or worse than other options out there?
    Have you factored in the costs of purchasing, selling and stamp duty (should you make money)

    Fiid for thought... ​​​​​​There's some relatively safe investments out in the market at 6-10% at the moment.


      You are breaking all the basic rules of investment. You should always retain a significant cash investment and you should diversify your investments.

      Property prices may not continue to rise (and in fact new builds, which this sounds like, tend to lose value. Note that what caused the real hardship in the great Wall Street crash was not that the stocks became valueless, but that they became worth less than the mount borrowed to buy them.

      Student lets are characterised by a high risk of damage to the property, which will not be covered by the service charge. The service charge is very high, but you may still find there are years in which you have to pay much more (e.g. they suddenly find a basic fire safety flaw).


        Those properties sound like a terrible investment, full stop.
        For you, they are a complete non-starter as you simply don't have enough money to be involved in a property investment business.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


          Thank you all for your suggestion and comments. The management fees including service charge and ground rent is £3K per annum and rental income from those flat would be around £5K per annum. It looks like I will have no control over managing this flat. I am lower tax payer and with this rental income I will be still in lower income bracket.

          I am planning to take early retirement from my current job in about 12-15 years time and looking for regular extra little rental income until I get my state pension. This is long term investment plan and at present I don't have enough deposit to buy traditional property. I will have to work another 2 to 3 years to save enough deposit to buy traditional property but price may go up.


            You have to do a proper business plan for any property you consider and factor in all the costs - loan interest, repairs, voids, irrecoverable damage, agent fees, income tax......

            This may turn out to be the worst time to invest in btl in recent history as there are so many major factors at the moment that could affect the value of your investment


            Latest Activity


            • Payed rent can't move in to my room
              Hi, so I have payed this months rent and could of moved in on the 2nd September but I had work so I am moving in on the 28th, but got a message today say my room is still damp and the bed has been moved to the living room, also he does not know when I can move in to that bed room btw the girl before...
              28-09-2019, 00:19 AM
            • Reply to Payed rent can't move in to my room
              It was your 'fault' you didn't move in on 2nd Sept, so usually the answer would be - tough, you need to pay.

              However, as the room is uninhabitable and you never started the tenancy (moved in) then imho your landlord can't charge you for something he has been unable to provide. You can...
              01-10-2019, 09:16 AM
            • Reply to Payed rent can't move in to my room
              You have given a couple of clues as to what may be going on here but advice has to be limited because of lack of background information,

              Firstly, as the landlord says the room is still damp then he must know that it was damp and have an idea what caused it. If he knows what has caused it...
              30-09-2019, 19:38 PM
            • Reply to Payed rent can't move in to my room
              What outcome are you hoping for? Do you want to unwind the contract or just live elsewhere until the room is habitable? Either should be possible and as long as you pay rent, the landlord would be obliged to pay your reasonable costs to live elsewhere in the meantime....
              28-09-2019, 16:22 PM
            • Non paying tenant & court
              I signed a joint tenancy agreement with 3 other students. 1 of them dropped out after paying the 1st months rent. The contract was joint & severally liable. After a few months of us trying to find a replacement, with no chance! The letting agents called us for a meeting as to how we could pay...
              23-09-2019, 18:20 PM
            • Reply to Non paying tenant & court
              The arrangement between the tenants is nothing to do with the tenancy agreement or the document.
              It's to do with the agreement that they must have made to somehow share the costs, for which the tenancy agreement is simply evidence.

              What the split was and how it was agreed will be...
              25-09-2019, 07:50 AM
            • Reply to Non paying tenant & court
              Clearly morally that's correct.

              But, please, where in any document has the drop-out agreed to any particular proportion of the rent?

              Surely the whole point of joint & several tenancies is that each tenant is sue-able for the whole lot? And if the split is defined in AST...
              24-09-2019, 15:44 PM
            • Move in date moved on morning of move.
              J Dut
              My son had a call this morning telling him he couldn’t move in to his student let this afternoon because they haven’t completed the checkout after the previous tenant. He was told this would be done a week ago.

              He is already in the area and we were on our way with his belongings when...
              21-09-2019, 12:25 PM
            • Reply to Move in date moved on morning of move.
              Do let us know the outcome here.
              24-09-2019, 10:53 AM
            • Reply to Non paying tenant & court
              You have every right to sue the missing tenant.
              All three of you would have to take the action (which could be done using the small claims court).

              The tenant agreed to share the cost of the property with you and then reneged on the deal.
              You should sue them for a quarter (or...
              24-09-2019, 08:13 AM