Student lettings give higher financial returns

Student lets offers landlords higher yields than any other form of rental properties, according to new research.

A study by one of the largest mortgage providers Paragon, has estimated that student properties are producing on average yields of 6.45%. This is considerably higher than young couples, who are providing yields of 5.94%

Paragon feel that Landlords are making these increased yields by charging on a room by room basis rather than renting to an entire group of students.

Buy-to-let investors will no doubt be encouraged by these recent figures, and many will no doubt be approaching Bristol Letting agents trying to set up a deal before the start of the new academic term.

The Daily Telegraph, in a recent article said that many Landlords choose to work with Letting agents when it comes to Student accommodation, because the risk of late rental payments and increase maintenance costs is generally higher when dealing with students. Lettings agents being closer to the property can often eliminate these risks.

Speaking to rman.co.uk, Tim Daplyn from The National Student Housing Survey claimed that the best way to be successful in the student lettings market is to communicate with any potential tenants.

He said: "Going to university is no longer a right, but something students pay a lot of money to do.

They know what they want and they are intelligent enough to make sure they get it. "Student accommodation remains a thriving business, but those who will continue to succeed in this market will be those who listen to their tenants and respond effectively."