“…despite the tax changes and potential for mortgage costs to rise, [there is a] greater demand from tenants, rents…should rise with inflation and the long horizon for interest rates, mean many investors are still tempted by buy-to-let.”
Let’s get campaign specific and look at buy-to-let student accommodation opportunities. According to UCAS, in 2015, ‘a total of 532,300 people entered UK higher education’. Most institutions only offer halls of residence accommodation for the first year, so once a student reaches their second year they, along with their friends, start looking for privately-owned rental properties. So enticing prospective buy-to-let landlords to invest in a HMO should surely be on the radar of any agency’s yearly campaign schedule.
To compliment this evidence, the Property Investor Today reported that “…parents are prepared to pay significantly more money to buy property within the catchment area of desirable schools, [so] it may be worthwhile thinking about investing in property near the best-performing state schools.” They also state that ‘27% of parents with school-age children have either bought or rented a new property to secure an address in the catchment area of the best schools’. To really drive these points home, the website also quotes a spokesperson from Lloyds Bank, who, when asked if investing in a property located near a desirable school location was good idea, stated that it would be ‘shrewd investment’.
Further research, reported in a separate report from The Property Investor Today, also indicates that “…parents could buy a second home or buy-to-let for their child to live in while they are studying, and that house price growth over the duration of their three-year degree could potentially cover at least part of the cost of tuition.”
The Financial Times also published an article endorsing buy-to-let student accommodation, quoting an industry expert who expressed that: “”Student property is one of the most successful real estate asset classes, thanks to stability of demand for student bedrooms from all over the UK. The market is still structurally undersupplied in all core university cities.””
The benefits are clear then. However, encouraging people to invest in a buy-to-let property requires an agent to go the extra mile to ensure that all existing and prospective landlords, with an interest in buy-to-let student accommodation, are fully briefed about all the required regulations, legislation updates, taxes and insurance, as well as all the key information about where the greatest area for potential yield is.
Property 118.com offer an interesting overview of the top ten places to invest in property within the UK and, unsurprisingly, located within the list are cities with a considerable student population. Their conclusion of the data also makes for interesting reading, noting that, in each of the major cities that have made the table, buy-to-let student houses are an extremely inviting investment.
Like with most investments, there are pros and cons. However, the benefits for landlords are comprehensive as there is - potentially - a guaranteed rental income for up to 52 weeks of the year, the potential for increasingly high yields and, with a high supply and demand ratio, this means that letting the property is all but guaranteed.
So the benefits for landlords are clear, but what are the benefits for your agency?
Well, here’s a few:
o You’ll receive regular income - if you cross-sell your management services.
o you’ll increase your website traffic.
o You’ll be recognised for your unique understanding of the area.
o You'll obviously increase your instructions.
o You’ll increase your revenue.
o You’ll increase word-of-mouth referrals.
So how do you target potential landlords? Actually, to put it a better way, how do you specifically target over 200 hundred landlords that meet the demographic criteria of the ‘average landlord’ for less than £140.00?
The answer? Use BriefYourMarket.com’s unique direct mail feature. Create, personalise and send fantastic looking direct mail cards to targeted prospects from a database of over 57 million contacts, all part of a BriefYourMarket.com standard package.
Combine a direct mail campaign with a targeted email campaign - sending to all existing landlords and potential buy-to-let prospects - and you could be graduating from the ‘University of Further Instructions’ sooner than you think.
Get in touch today by calling 0344 800 84 24, or by clicking on the button below, to discuss the benefits of combining targeted email campaigns with our direct mail feature.