Investing in Student Buy-To-Let, Ajay Ahuja, howtobooks, £9.99

Letting to students is certainly a financially inviting prospect but if you have heard cautionary tales about their unreliability or unsuitability as tenant’s Ahuja’s book will make interesting reading.

In Chapter 1, entitled Why Invest in the Student Market?, Ahuja offers clear and persuasive economic arguments in favour of such an investment. He demonstrates accurate methods of calculating profit and capital appreciation. He also deals with what options are available to student landlords when the university term ends. And, as everyone knows, the holidays are generous to say the least! It is common practice for landlords to charge half-rent over the summer period, known as a ‘retainer’, which acts as a guarantee on a particular property for a student when the new term commences. However, often students, particularly those in their second or third year or those from small towns, choose to spend the summer working in their university city; thus providing a full year’s complete rental income for the landlord.

Chapter 2 explores ‘Finding the Right Property’ and gives pertinent advice on identifying the right house and the correct area. Indeed, this chapter may be of equal interest to prospective students as it will undoubtedly be to prospective landlords. The key areas for consideration emerge as furnishings and location. Chapter 3 is concerned with targeting the ‘right’ student tenant with tips on advertising your property as well as reminders about issues it is easy to overlook such as the dropout rate of an institution, which could affect the returns on your investment.

Elsewhere Ahuja covers the tricky but necessary issues of tax, legal and security issues before providing A-Z location profiles of UK university towns and cities, with separate sections for universities in or near London respectively. Each table contains information on student areas, future plans for the university, suitable types of property, yield range and contact details for estate and letting agents.

Of course you may be considering embarking on a student property investment while your own children are at university. In this instance the location may already be decided for you but Ahuja’s book may still be useful in determining what type of property to look for. If you’ve got more than one child of university age it makes financial sense to encourage them to go to the same university, or perhaps they could team up with extended family? Investment in an area which has guaranteed sustained demand for rental properties has to be better than shelling out your hard-earned cash to multiple landlords on behalf of ungrateful offspring. This is a particularly attractive proposition if you are wary about letting to tenants of the notoriously unhouseproud student variety. At least you’d know what to expect of your own.