The best cities for student landlords to invest in revealed
The best cities and towns in England and Wales for landlords to invest in student housing have been revealed in a study by Molo Finance.
Its research ranked 24 university locations based on the average rent, property price, student population, student property percentage and gross rental yields.
And the top spots for student landlord investment are Derby, Hatfield and Preston.
They offer landlords high rental yields and low competition.
How student landlords can stand out from the crowd
Molo's VP of strategy, Mark Michaelides, has some advice on how student landlords can stand out from the crowd, and he said: "For many landlords, student housing tends to see pretty stable demand, as there is almost always a healthy appetite for rentals in university towns and cities.
"However, given how crowded the market can also be, it's important that landlords are differentiating their offerings, to make sure they're able to attract - and retain - good tenants year after year.
"Making properties stand out to students often hinges on small touches, such as offering fast, reliable internet and perhaps including bills in the rent.
"Things like bike storage or parking space may also be attractive."
'Landlords looking to thrive in competitive cities'
Mr Michaelides added: "Landlords looking to thrive in competitive cities should consider what they can do around the property as well, whether it's installing premium fixtures, smart home tech like digital door locks, or eco upgrades such as solar panels.
"Outdoor enhancements, such as barbeques and furniture, could also entice tenants.
"Ultimately, diversifying a student rental can help you command attention and maximise rental yields, even with properties in popular but crowded markets."
Just 1.67% of the properties in Derby are student lets
Derby, home to the University of Derby, has 20,955 students living in the city, which accounts for 2.97% of the population - but just 1.67% of the properties in Derby are student lets.
That suggests a potential gap in the market for landlords who can enjoy an average gross rental yield of 5.34%, which is higher than the national average of 4.98%.
Hatfield, the main base of the University of Hertfordshire, is the second-best place for student housing investment, and has 31,940 students, which make up 8.77% of the population.
Only 2.47% of the properties in the town are student lets and the average gross rental yield is 5.28%.
Preston, where the University of Central Lancashire is located, has 28,325 students, which represent 5.64% of the population.
Of the city's properties, 3.07% are student lets and the average gross rental yield is 5.41%.
The top 10 best cities for student landlord investment also saw Reading, Durham and Swansea being included.
The list also includes Portsmouth, Bristol, Manchester and Canterbury.
Cities and towns with the highest proportion of student accommodation
The digital lender's study also reveals the cities and towns with the highest proportion of student accommodation, which could pose a challenge for landlords looking to stand out from the crowd.
Nottingham, Exeter and Oxford are the three places with the most student properties, accounting for 11.79%, 10.99% and 9.33% of the housing market respectively.
However, these places also have large student populations, which could mean a steady demand for rented student homes.
'Property investors should do their research'
Simon Thompson, the managing director of Accommodation for Students, said: "The research is interesting because it highlights that property investors should do their research to enjoy the best yields.
"And, of course, they should offer student tenants a quality home that they feel safe in.
"The student accommodation sector is a strong one and with demand increasing, investors should feel confident."
He added: "The study also shows that a low ratio of student lets is attractive to an investor - but a high ratio shouldn't put investors off either if there is a large student body to support supply."
