Why do people pay extortionate prices for accommodation?
Hi, I'm not a uni student but just asking a general question.
I work in a studenty area so I constantly see these 3-4 story "student" houses being advertised with prices of approximately £80pppw which house around 8-10 students.
Now one of these houses has no more market value than of around £200-250k as I've seen them outright and on the rental market for probably around £900 a month privately through your standard proprety agent.
But one of these houses when fully occupied will be bringing around £3000 a month to the landlord, I understands students may be more of problem tenants but not to charge 3x more.
Question is, why do students go for these houses advertised for students rather than going privately and going for a normal rental.
I'm tempted to take a mortgage out on one and rent it out to students as it seems like a great cash cow
I work in a studenty area so I constantly see these 3-4 story "student" houses being advertised with prices of approximately £80pppw which house around 8-10 students.
Now one of these houses has no more market value than of around £200-250k as I've seen them outright and on the rental market for probably around £900 a month privately through your standard proprety agent.
But one of these houses when fully occupied will be bringing around £3000 a month to the landlord, I understands students may be more of problem tenants but not to charge 3x more.
Question is, why do students go for these houses advertised for students rather than going privately and going for a normal rental.
I'm tempted to take a mortgage out on one and rent it out to students as it seems like a great cash cow
It’s much harder to rent a 3 bed house from a private landlord than a room in a three bed house.
For a start, income is assessed, financial history checked etc. References required. And usually you need to be working. Also, if you own a nice house that you can rent to a family would you rent it short term to a group of students? Not if you’ve any sense!!
Landlords are reluctant to rent to the unemployed never mind a group of 28 year olds.
And if you own a house in a student area you’d be raving mad to let it as a house when you can convert it and charge extortionate prices for a room!!!
Sadly, it’s just another way students are screwed over nowadays
For a start, income is assessed, financial history checked etc. References required. And usually you need to be working. Also, if you own a nice house that you can rent to a family would you rent it short term to a group of students? Not if you’ve any sense!!
Landlords are reluctant to rent to the unemployed never mind a group of 28 year olds.
And if you own a house in a student area you’d be raving mad to let it as a house when you can convert it and charge extortionate prices for a room!!!
Sadly, it’s just another way students are screwed over nowadays
Original post by xDron3
Hi, I'm not a uni student but just asking a general question.
I work in a studenty area so I constantly see these 3-4 story "student" houses being advertised with prices of approximately £80pppw which house around 8-10 students.
Now one of these houses has no more market value than of around £200-250k as I've seen them outright and on the rental market for probably around £900 a month privately through your standard proprety agent.
But one of these houses when fully occupied will be bringing around £3000 a month to the landlord, I understands students may be more of problem tenants but not to charge 3x more.
Question is, why do students go for these houses advertised for students rather than going privately and going for a normal rental.
I'm tempted to take a mortgage out on one and rent it out to students as it seems like a great cash cow
I work in a studenty area so I constantly see these 3-4 story "student" houses being advertised with prices of approximately £80pppw which house around 8-10 students.
Now one of these houses has no more market value than of around £200-250k as I've seen them outright and on the rental market for probably around £900 a month privately through your standard proprety agent.
But one of these houses when fully occupied will be bringing around £3000 a month to the landlord, I understands students may be more of problem tenants but not to charge 3x more.
Question is, why do students go for these houses advertised for students rather than going privately and going for a normal rental.
I'm tempted to take a mortgage out on one and rent it out to students as it seems like a great cash cow
£80 a week for a room? That would be the dream in London!
Original post by jameswhughes
£80 a week for a room? That would be the dream in London!
This is in a town offset from Leeds. I'd absolutely hate to see how much they're changing in London and the quality of it.
Original post by xDron3
This is in a town offset from Leeds. I'd absolutely hate to see how much they're changing in London and the quality of it.
At least twice as much for something twice as small...
In London renting a room would be at least £600 a month, and halls are even more expensive. I think that's another reason student landlords can charge so much, they see the price of university halls and decide they can match it, and students will pay regardless.
Original post by jameswhughes
At least twice as much for something twice as small...
In London renting a room would be at least £600 a month, and halls are even more expensive. I think that's another reason student landlords can charge so much, they see the price of university halls and decide they can match it, and students will pay regardless.
In London renting a room would be at least £600 a month, and halls are even more expensive. I think that's another reason student landlords can charge so much, they see the price of university halls and decide they can match it, and students will pay regardless.
Holy s***, I'd be expecting a 2 bedroom house for that much. I didn't realise the difference is that drastic
Because a lot of new developments designed for the young professionals or city-living families, academic families in the area are a similar price per person for two or three bedroom flats, but there are some huge difficulties and cons arising from those. Deposits are much higher for these kinds of properties, and background checks are much more stringent, I've seen situations where agents have been looking for as much as £35k earnings per year per tenant or even higher for guarantors given the guarantor covers the entire property, and this is in Sheffield, one of if not the cheapest of the larger cities. These organisations just aren't used to the kind of rent:income ratios that students have and they're not willing to shift, alongside many companies straight up not renting to students, particularly undergraduates.
You also have social aspects, a lot of students, especially younger ones, enjoy living with more people and enjoy living around other students. Hence there is a premium that can be asked for these big houses in student areas.
I'd also dispute that these houses are actually as cheap as you say, in my area there was as much as a 150-200% markup on houses in student areas compared to other areas. There are also plenty of other costs involved to get the property to the point of being rentable, desirable, and reasonably student-proof. I'd also consider that the last few months probably aren't the most desirable to purchase a rental property, particularly one which doesn't currently have tenants, and that will naturally result in lower prices.
You also have social aspects, a lot of students, especially younger ones, enjoy living with more people and enjoy living around other students. Hence there is a premium that can be asked for these big houses in student areas.
I'd also dispute that these houses are actually as cheap as you say, in my area there was as much as a 150-200% markup on houses in student areas compared to other areas. There are also plenty of other costs involved to get the property to the point of being rentable, desirable, and reasonably student-proof. I'd also consider that the last few months probably aren't the most desirable to purchase a rental property, particularly one which doesn't currently have tenants, and that will naturally result in lower prices.
(edited 5 years ago)
It's so much easier to rent a student house. How would I be able to prove I have an income to pay rent when student loan doesn't count as an income? And all other issues with privately renting etc.
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