According to one leading money advice website, anyone hoping to turn a decent profit during the current buy to let property boom should invest in a multi bedroom property in one of the top university towns. Buy a three-bedroom property in Leeds, Bristol, Liverpool or Birmingham and you can easily generate a decent income from student tenants.
London has traditionally been seen as the most lucrative area for HMO properties, but thanks to the rising cost of property in London, returns on investments are now much lower than in provincial university towns. Instead experts recommend that would-be landlords target popular university towns with a high percentage of students and young professionals.
Know Your Target Market
A lot of new landlords are wary of targeting the student market because student tenants have a poor reputation. However, although students are a higher risk than say a young professional tenant, rental yields can be excellent if you take on a property in the right area. For maximum rental yields, invest in a multiple bedroom property near the campus or in a popular area of town, and remember that students are more discerning these days—they will expect extras such as WiFi access, decent door and window locks, and secure bike storage.
Attract Young Professionals
Young professionals are less likely to trash the place, but they do demand a greater level of comfort, so be prepared to install better quality appliances in the kitchen and decorate the property to a higher specification. It is also a good idea to choose a property close to public transport links.
