Buy To Let Updated:
New research suggests that despite their notorious reputations, students are amongst some of the most reliable tenants.
A survey conducted amongst National Landlords' Association members reveals that students are the least likely of all tenant types to miss a rental payment, with only 38% of landlords who let to students having experienced arrears in the last year.
Landlords letting to students also experienced the lowest incidence of void periods, with fewer than one in three (30%) having empty properties in recent months.
In almost all cases, student properties fall under the category of a House in Multiple Occupation (HMO).
A property will probably be classed as a HMO if:
HMOs are often the most lucrative in terms of rental yields, as landlords are able to charge rent per room, rather than on the entire property.
But this also means that HMO landlords have extra legal responsibilities, such as making sure that the communal areas are in a good state of repair and that proper fire safety measures are in place.
Additionally, landlords will have to get a special licence from their local council to let out the property as a HMO.
Remember, some lenders do not offer buy-to-let mortgages on this type of property, which means if you're thinking of investing in a HMO property it's always best to seek independent financial advice to find the right product for your individual circumstances.
Find the best buy-to-let mortgages
Moneyfacts.co.uk guide to buy to let mortgages
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