Students Want Technology 1st Sep 2017
Student lets are booming business if you can afford to get into that investment stream.
Successful landlords increasingly own student properties as part of their portfolio, as do big institutions, including insurers Aviva and Legal & General. With many Universities lacking the funds required to build or maintain their own housing, there is a severe shortage of student accommodation across many parts of the UK, and this has helped to push up rents in the sector as demand outstrips supply.
However student needs have changed over the years and landlords need to be aware of this. A new report from Currys PC World Business has revealed that landlords who fail to properly invest in technology may well be losing out on significant income.
According to the findings, technology can make all the difference when it comes to renting, with nearly half of students (44%) willing to pay more for fibre optic or high-speed internet. 35% stated that they would not rent a property which didn’t have a secure internet connection.
The report further finds that 55% expect to see washing machines, freezers, dishwashers and dryers in their rental property! Over one-in-three (36%) of students said the lack of a microwave would be an instant turn-off. 60% of students said that electricals and kitchen appliances played a key part in their decision whether or not to rent a property. 85% of students said that they were more likely to rent a property if appliances were new.
Interestingly, 29% of students see themselves as high-maintenance and expect a heightened level of service from their property.
Simon Moyle, Head of Business Solutions at Currys PC World Business, observed: ‘With well over half a million students in the UK this is a market that represents a huge opportunity for landlords, and one where the right investment can make all the difference. What’s more, research from mortgage lender Paragon found that student properties typically enjoy a yield premium of around 27% over the market average – demonstrating that it can be a hugely profitable area of investment.’
It is perhaps not surprising then that high rental prices and an increasingly informed rental generation have led to an increase in student expectations. Landlords therefore need to move with the times and deliver the technology highlighted in the above research if they want to keep commanding top rents from their tenants.
For further information on student lets, contact The Key Place now.