I was walking to work the other day an bumped into a landlord of ours walking his dog on Polhill Avenue. He knew we managed several student properties and wanted to know whether it was a good idea to get into the student market?
He had seen this four bedroom property on the market with the online agent Housesimple.com . Located in Newnham Avenue this wasnt very far from where we were and the University.
Looks promising but I offered a word of caution. Although the advertisement stated that “more student tenants showing interest from 1 July 2016.” I would want to see something more concrete that this.
I explained to my client that the student market had fluctuated greatly since 2011 when the issue of student fees had come to the fore. And had left many landlords with vacant property if not let quickly in February/March
I also suggested that he confirmed what the room rates would be in order to ascertain whether he would achieve a healthy return, the average room rate for a double being around £325 per calendar month. Which would offer , if all three doubles were let around £975 per calendar month. With around £200 per month for a single room this is quite healthy.
I also asked him to check how long would be left on the HMO license as this could incur additional costs.
I gave him a lot to think about and he confirmed he would catch up with me later , once he had dropped Spot (the dog ) off at home