Student Letting Opportunity with Potential 7% Yield

One of our landlords visited the office last weekend who owns two apartments in Chichester that are rented to professional sharers. She wanted to discuss entering the student lettings market and wanted our advice.

There are several things to consider with student lettings; it is a seasonal market - there's a marketing window between January and March for which students view properties ready for the Summer. Either side of this window and landlords can often struggle to secure tenancies. Increased wear and tear - with the best student tenants in the world, shared accommodation usually warrants an annual (or every other year) redecoration, which can often swallow up a full months rent in one swoop. Furnishings - student properties require a basic level of furniture (beds, desks, wardrobes, sofas etc) which involves an element of initial outlay and upkeep.

That being said, the potential rental return from a student property can often be 50% more than it would be if a property was let as a traditional 'family home'. On average in Chichester, a decent sized bedroom in a student house can fetch £300-400pcm.

Taking this three bedroom, two reception room ex-local authority property in Hay Road on the market with Cubitt and West (http://www.rightmove.co.uk/property-for-sale/property-31409226.html?premiumA=true). This property could quite easily turn the dining room into a bedroom and achieve £350 per room, per month (or £1400pcm as a whole dwelling). If purchased at the asking price of £240,000 a gross yield of 7% would illustrate a healthy return on investment.