Anyone else thinking of getting out of student lets?

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    Anyone else thinking of getting out of student lets?

    I have a 3 bed flat which I have rented out to students for the last 8 years. I am now refurbishing it as it just didn’t let for this academic year, partly due to lessons being mostly online, partly due to the fact that it is really tired, which I am addressing with a new kitchen, new flooring throughout and repainting.
    The agent is encouraging me to go for the professional market, which might be more realistic at this time of year ( I’m still hoping there will be student demand if more lessons go face to face in January). Disadvantage of professional wil be re-configuring the furniture, moving one bed out and also the student desks. Also, the area is known as a student area and this could be off putting to professionals. Advantage could be year round rent and it being more neighbourly as I know students can be irritating to the neighbours ( it’s a 6 homes block of flats). There has been a growth in new purpose built student accommodation units in the town but I don’t know if it’s reached saturation yet.
    it would be good to know if anyone else is facing the same issues and decisions? Thanks.

    #2
    Never got into them. If I had I'd have aimed at post grad students who need less handholding and want rooms all year round.Or maybe medical students, also tend to want rooms for longer. There is still a market for tired, but the rent needs to match.

    These days the professional market welcome desks as they may be working from home at least part of the time, I wouldnt get rid of them if they are decent standard.

    Comment


      #3
      Thanks for the tip re desks. Will hang on to them! I would appreciate post grads too. The handholding can be a bit wearing I agree!

      Comment


        #4
        I have a student house which is in an area which has been historically popular with students. I have owned the house for 25 years and it has also been used for groups of 'professionals' in the past. I have faced and continue to face the same issues as you but my agent is on campus and has found me tenants for this academic year - if they had not I would be forced to consider another tenant group or possibly sell up.

        The largest decision for me was what I as a landlord wanted to offer and which group of tenants would fit. I wanted a one a year tenancy with a vacant period in summer to clear and repair the house in order to maintain it's condition. I did not want to deal with utility bills. I also wanted an Agent who could take care of all minor issues and deal with the marketing. The downside of this is that if the Agent misses the market, you end up with a void for the year or their usual default position - room let to professionals and you will need to offer inclusive rent - and you will be forced to do the utilities. In these last two academic years I have been asked to discount rent and have done so. Also in the past I have missed the market and decided to sell rather than go down the professional route.

        For me the student market would not work unless I had a group of 4 taking a single contract. Even then there are the one that drops out and the discounts in summer which is all handled by the agent. The student market is changing in our area too with the massive student apartments with concierge, gym etc and 40 week contracts however I still see a place for a well run student house as the costs are comparable when annualised.

        If I had complaints of noise etc from neighbours of my student tenants I would be thinking of changing to another type of tenant .








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          #5
          Thanks for taking the time to give that thoughtful reply Alex. I am feeling that I don’t have control over everything at the moment. IKEA just sent me a text to inform me the kitchen delivery is delayed by 4 weeks. So I’ll be lucky if the flat will be ready before Christmas.
          The agent has advised me to be flexible, be willing to remove or add furniture depending on the tenant. I feel the time of year is going to dictate professional market now. Apparently about 25 of his landlords have moved away from renting to students this academic year. I think I’m best off not limiting options to any one type of tenant at this stage and seeing what the market dictate once the refurb is finished.

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            #6
            We used to have 11 student let’s with a further two we manage. Just sold four. Council don’t want private landlords have student let’s as they want them in large buildings. We have at least four private large buildings and another housing around 375 or maybe more just being built. They are expensive but it seems students don’t care as they have their loan and perhaps will never pay it back! Council want us to take the homeless in. No Thankyou. Rather sell up. Good luck.

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              #7
              I agree Jer it’s the same in my town. I can somewhat see the councils point of view though as over the years student lets have changed the character of the place ( generally not for the better with unkempt gardens, overflowing bins, noise etc) and they want students to be contained din purpose built blocks. As you say, the student themselves don’t seem to mind the high prices, maybe reckoning they.l never repay their loans anyway. My son has an et suit bathroom at uni. I was happy to share with 4 housemates.

              Comment


                #8
                Why on earth are you buying (sorry, ordering) a kitchen from Ikea? Open a Howdens trade account and take it away (assembled) the same day. Cancel Ikea if you can. You are paying for the boy to have an ensuite so clearly he is in a reasonably posh property? You should emulate this. If you can fit an e/s in your place, do it even if it;s only a shower and basin.
                Forget the desks and cut worktop into whatever space it suits/fits. Then it's a "workstation" and we all know how the kids love those. Also the inebriated student (or profs?) cannot break them quite so easily. Finish them nicely with a hole for the plugs to go through! I occaisonally have students whose courses start in January. I have moved to laminate after 40 years of carpets..it's a godsend. Good luck!

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                  Why on earth are you buying (sorry, ordering) a kitchen from Ikea? Open a Howdens trade account and take it away (assembled) the same day. Cancel Ikea if you can. You are paying for the boy to have an ensuite so clearly he is in a reasonably posh property? You should emulate this. If you can fit an...
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                • Anyone else thinking of getting out of student lets?
                  by Lots on
                  I have a 3 bed flat which I have rented out to students for the last 8 years. I am now refurbishing it as it just didn’t let for this academic year, partly due to lessons being mostly online, partly due to the fact that it is really tired, which I am addressing with a new kitchen, new flooring throughout...
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                • Reply to Anyone else thinking of getting out of student lets?
                  by Lots on
                  I agree Jer it’s the same in my town. I can somewhat see the councils point of view though as over the years student lets have changed the character of the place ( generally not for the better with unkempt gardens, overflowing bins, noise etc) and they want students to be contained din purpose built...
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                • Reply to Anyone else thinking of getting out of student lets?
                  by Jer
                  We used to have 11 student let’s with a further two we manage. Just sold four. Council don’t want private landlords have student let’s as they want them in large buildings. We have at least four private large buildings and another housing around 375 or maybe more just being built. They are expensive...
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                • Reply to Anyone else thinking of getting out of student lets?
                  by Lots on
                  Thanks for taking the time to give that thoughtful reply Alex. I am feeling that I don’t have control over everything at the moment. IKEA just sent me a text to inform me the kitchen delivery is delayed by 4 weeks. So I’ll be lucky if the flat will be ready before Christmas.
                  The agent has...
                  30-10-2021, 13:58 PM
                • Reply to Anyone else thinking of getting out of student lets?
                  by AlexR
                  I have a student house which is in an area which has been historically popular with students. I have owned the house for 25 years and it has also been used for groups of 'professionals' in the past. I have faced and continue to face the same issues as you but my agent is on campus and has found me tenants...
                  29-10-2021, 09:49 AM
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