Need advice on student investment in Lincoln

by Readers Question

14:29 PM, 20th April 2015
About 4 years ago

Need advice on student investment in Lincoln

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Need advice on student investment in Lincoln

I’m brand new to property letting and I am contemplating buying a 3 bed terrace or house in Lincoln with a view to renting this out to students on a per room arrangement, I want to know can I do this ? Do I need additional permission from my lender ?

Do I need to introduce additional features such as fire escapes etc ?

I am looking at a in the £120,000 range, and then charging up to £90 per room per week. Need advice on student investment in Lincoln

Is this realistic?

Thanks in advance for any advice.

John Squires



Comments

Mark Alexander

14:39 PM, 20th April 2015
About 4 years ago

Hi John

It seems you are very fresh to this so please don't jump in with both feet. Instead, do your research fully before committing yourself. To get you started I suggest the following:-

1) Go and talk to the University Accommodation Office to find out first hand what they need most. They will tell you about all the rules and regs, where to buy, how to market to students, what rents you should be charging etc.

2) Book yourself onto the next available NLA one day Landlord Accreditation course to give yourself a far better insight into what being a landlord is really all about. The courses cost £150.

3) Based on the first two points talk to a mortgage broker about how much you can borrow. Simone Gilks is an expert broker in terms of financing student BTL investments - see >>> http://www.property118.com/member/?id=1786
.

Barry Fitzpatrick

15:59 PM, 20th April 2015
About 4 years ago

John,

I have 5 student lets in Bath, that I've being letting for 8 years.

Here's a few things you need to consider:

1. check with your Lender that they allow students lets (many do not). And those that do many specify that it must be on a Joint AST.
2. speak with local letting agents who specialise in student lets. get what current rates are, where the best student areas are, etc. I'd strongly advise using an agent as students can be very hard work. (I started managing the properties myself but found using a letting agent far easier and well worth it).
3. Lettings typically run from summer to summer but are marketed from beginning of December for the following academic year and generally marketed to second/third year students (first year tend to go into halls of residence). The closer to the summer the harder it is to get tenants, and therefore you could end up with a long void, and maybe have to rent to non-students. Unless you buy a property which is already a student let and has tenants signed up for the next academic year.
4. does the local council have an HMO licensing scheme - it may be illegal to let without a licence.
5. do your sums and stress test at 130% rental cover and 6-7% interest rates.
6. furnish with reasonable quality furniture (it will look nicer for longer, and last better), and keep decor well appointed. Students will look after it better - if it looks good to start with, and you'll get a premium on the rent as well.
7. you'd be well advised to the fire safety guide "LACORS" booklet. Certain room layouts can be expensive to make LACORS compliant.
8. get on the list and get accredited with the local University Accommodation Dept.
9. make sure your Landlord's insurance covers you for student lets.

This is what immediately springs to mind. But I am sure other will drift to the surface and I'll add them to this thread as and when. You've probably got enough to be going on with.

Best of luck

Barry

Neil Patterson

16:06 PM, 20th April 2015
About 4 years ago

Each lender has it's own specific criteria for allowing student letting. This is factored in when a whole of market broker does a product search for you 🙂

wayne carson

16:12 PM, 20th April 2015
About 4 years ago

Speak to Paul Collins at Belvoir in Lincoln.

Jean Russell

10:54 AM, 21st April 2015
About 4 years ago

Assuming you live in Lincoln why don't you come along to the next Property Investor Network meeting I go to, then you meet others investing in the area and talk face to face. ** Link removed by moderator - please see House Rules **

Sath Vaddaram

17:14 PM, 21st April 2015
About 4 years ago

Hi John

My name is Sath and I host Lincoln pin (property investors network). Please come along to network with like minded people and to get valuable information and help your journey


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