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University challenge: helping landlords make the most of yields


Did you know almost all of the UK’s top 20 best postcodes for buy-to-let rental yields are located within close proximity to a university campus? In a market where the need to balance a buy-to-let purchase value with the best returns is more important than ever, the student lets market is one that letting agents can present to landlords, especially if they offer a full management service.   

Many landlords have shied away from the thought of letting to undergraduates due to the more fluid and hands-on nature of the tenancy but the student let market offers consistent demand and short vacancy periods, which provide landlords (and letting agents) with a reliable income stream. Add into the mix that stat that 50% of students are living in private rented accommodation* and some very positive yields, as detailed later, and there’s a real opportunity.

Chasing yields is only possible if landlords have complete faith in their letting agent, especially if they are investing in a property at the other end of the country to where they live. This type of long-distance let relies on first-class property management, especially if there is a higher turnover of tenants, more frequent property inspections, an intense maintenance schedule and the possibility of legislation-bound HMOs.

Here’s where ARPM offers agents a huge advantage. We can partner with agents to offer a bolt-on property management division that’s resourced well enough to handle student lets or deal with the overflow from a small but struggling management department. Geared up for rent collection, tenancy administration and 24/7 property maintenance, ARPM affords agents the luxury of a full management service without them having to lift a finger, hire new staff or invest in training. 

For budgeting peace-of-mind, we operate on a ‘pay per property’ basis. Agents can make sure every penny spent with ARPM is offset against a profit-turning property, ensuring income is always protected.  Many of our partner agents also take advantage of our white label agreement, so all ARPM’s tenant communications are branded with the agents name and identity.

If you’re an agent looking to promote student lets to landlords, new research by Ideal Flatmate using PropertyData figures may be of interest. The analysis looked at the relationship between rental values and yields among the UK’s top 50 universities to establish where the best returns were. 

The highest grossing yields were found in Edinburgh, Nottingham Trent, Leicester and Dundee, with all four providing yields in excess of 7% (Edinburgh topped the list at 7.77%). Liverpool, Strathclyde, Northumbria, Newcastle and Aberdeen also performed well, each with yields in excess of 6%.

If you’d like to discuss the student lets market or increase your management capacity to reach landlords investing near universities, contact us today.

* National Student Accommodation Survey 2018

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