Tenant arrears problems ended by student property investment?
01-04-2015
Student property investment is proving to be a very popular and effective hassle-free option for traditional landlords.
Summary:
•Rental payments in the UK are currently at record highs
•A third of landlords have experienced tenant arrears over the past year
•Student property investments limit the amount of hands-on involvement expected of owners
With rental returns across the UK currently at record highs, traditional buy-to-let investments can be very worthwhile – however, only if people have the time and dedication to deal with the issues and responsibilities of being a landlord. The latest example of this to be highlighted is late payments.
New research from the National Landlords Association (NLA) shows that almost a third of landlords in the UK have experienced rent arrears in the last 12 months. The NLA report shows the average amount of rent in arrears is £1,649 and this totals £850 million across the UK.
The research coincides with the NLA’s latest campaign called Rent, Risk Resolve. It aims to highlight the biggest risks facing landlords – arrears, rising interest rates, licencing and rent controls – and helps them to limit the impact.
“All landlords will be affected by one or more of these issues to some extent somewhere down the line and it’s vital for them to keep in mind the major threats to the success of their business,” said Carolyn Uphill, NLA Chairman.
One way to remove these hands-on issues and still retain the capacity to supplement an income with regular rental returns is student property investment. In purpose-built developments rents are often paid in bulk prior to academic term times, while other ongoing issues are handled by an on-site management teams.
This option is proving to be very popular with the investment community as approximately £6 billion being spent on student accommodation across the UK over the past three years.