Sign up now
Keep up to date with our latest property investments and news
  • 8-12% NET annual yields
  • Up to 25-year fixed income agreements
  • Professional onsite management
  • Full legal ownership
guide image - Serviced apartments
Click to view Emerging Property's Privacy Policy

Purpose Built Student Accommodation: what happens after 10 years?

Student property investments 10 years
Feb 15, 2016

Buyers of our student accommodation properties receive 250-year leasehold ownership, with a fixed income contract for the first 10 years. After 10 years, buyers can choose between three attractive options.

 

1. You can choose to sign a new contract with the developer

The fixed income contract is profitable for the developer, who benefits by maximising demand and ensuring annual rental income growth.

They will therefore want to offer terms that are agreeable with the buyers after 10 years. The developer will offer you a new fixed income contract based on the property’s rental income at that time.

Student sector rents have consistently increased by 3-4% annually since 2000, with 3.5% growth recorded in 2015 (Savills). They will be keen to continue the mutually beneficial relationship and, with other attractive options available to you, will have to make a competitive offer.

You can reject the developer’s terms, with the other two options enabling you to still benefit from the onsite management team for a fixed service charge.

Purpose Built Student Accommodation

 

2. You can hire a local company to rent out your property

Estate agents and specialist management companies would be happy to work with you, since the demand for student room rental is so high, making student accommodation straightforward to tenant and profitable.

 

3. You can choose to personally let out your units

Advances in web-based technology have made this task easier, and there are a number of lettings websites popular with students. This option enables you to maximise the benefits of the consistent high rental growth the sector has experienced for a number of years.

If you’d like to learn more about resale or discuss which option would be best for you, simply get in touch with us!

 

Share this article

No Comments
You might also be interested in