Property investment and the process of building homes to suit certain types of students can be very lucrative. Many people design homes with certain groups in mind, with students being a very popular choice for architects and property investors in recent years. New student-focused property developments are springing up in cities all across the country, and the trend is even more pronounced when multiple universities are located in a particular city.
For those interested in building housing for students, we thought we would look at some of the things that you should consider. Keep reading to find out more.
The great thing about students is that they are often just looking for something that is cheap and near to their university or the local city. This means that the size usually isn’t too much of an issue, as long as there are enough rooms for all of their friends. Students typically like to share properties with around three or four people, on average, so building a one-bed apartment might not be the best approach for this target market.
If you do decide to build housing that is targeted at students then you’ll need to consider the kind of insurance that you will need to cover the building. For a family home that you’re building as a buy-to-let you would just need traditional landlord insurance, but for a student building with people from multiple households you’ll need HMO insurance, which is specifically designed to insure properties like this.
It’s also worth bearing in mind that some local councils may require property developers to apply for an HMO licence before they begin renting the property out to students.
Urban Chicago Example:
Illinois Institute of Technology Chicago Student Housing Fall
Another thing that you should consider when building housing for students is the schedule that you are working to. If you want to be able to fill your new property with students as soon as it is built then it would be a good idea to ensure the completion date falls sometime in the summer.
Students usually start looking for new properties over the summer break, and if your property is not ready until December or January then you’re likely to have a much smaller pool of prospective tenants to choose from.
The final tip that we have for those who are planning on building housing for students is to make sure that you are considering the energy-efficiency of the property. It is important that you are planning ahead with this kind of thing so that the building itself is energy-efficient to make it suitable for the future.
Building property that is suitable for students isn’t too difficult if you think about the kind of people that will be living in the property and what they desire. Make sure to include enough bedrooms for students that want to live with their friends and choose a location that is close to the local universities. Follow our tips and don’t forget your HMO insurance and HMO licence.