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Student buy to let property compared to purpose built student accommodation

Student buy to let investment or purpose built student accommodation
Aug 6, 2016

Buy to Let Student Accommodation

Many buy to let student properties across the UK need refurbishment or conversion prior to letting, which can prove to be expensive – especially if your tenants change year-on-year.

When the property is finally ready, there’s the issue of management. Whether it’s a dripping tap or a soil pipe blockage, it’ll be down to the owner (or a fee-retained management service) to put things right day or night for your tenants. Routine maintenance and unforeseen repairs all have an effect on the owner’s yields.

Then there’s the headache of finding and vetting tenants every time a rental period ends, along with rent collection.

And, with a residential housing shortfall of one million expected in 2020, local authorities are making the licensing of buy to let property in cities and towns across the UK much more complicated.

 

Advantages of Purpose Built Student Accommodation

The advantage of  Purpose Built Student Accommodation is that occupancy is assured; student tenants prefer renting high end, close-to-campus accommodation with excellent shared and individual facilities.

Another advantage is the 24/7 onsite management team, which takes care of all maintenance, repair, security, letting and rent collection; the result for the owner is effortless, regular, high NET income.

There are no further costs whatsoever after purchase and, since PBSA is classified as a commercial property, there is no Stamp Duty on purchases below £150,000 and no Capital Gains on resale.

Purpose Built Student Accommodation facilities

 

Benefiting all stakeholders

Purpose Built Student Accommodation works for all stakeholders ; the universities can attract the best students, the local authorities ease the pressure of rented housing and earn council tax (from which students are exempt), and residents appreciate urban revitalisation, more available homes and fairer rents.

Most importantly, the buyers receive a high and effortless NET income.

These are only some of the advantages of investing in PBSA over student buy-to-lets. To find out more, get in touch with us!

 

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