An expert has warned that letting property to students may not be as good as it seems. They may offer the greatest rental yield, but there could be a significant downside.
Student rentals can outperform wider markets because they are often let on a per-room basis. This usually generates a higher rental income. However, they also tend to create greater maintenance costs as they take less care of the property.
A spokesperson at the Paragon Group has stressed the need for landlords to “consider the bigger picture and not focus solely on the financial rewards available, as they may have to shell out money at the end of the tenancy agreement”.
The most important thing however is to have adequate landlords insurance, which should provide cover in the event of damage to the property. You can read more about Morgan Clark’s services for landlords by visiting our landlords’ insurance claims page.