10% yield on student house, worth it?

kingdomfan

Myself and the misses are looking at a house within a 2 minute walk from Sligo IT.

https://www.daft.ie/sligo/houses-for-sale/ballinode/11-copper-river-ballinode-sligo-1801147/

We have friends who rent to students and swear by it, it seams to remove the biggest fear we have on an investment property, over holding! with no rent. They are gone in May without fail, and a new batch in in September.

Only very basic needs required furniture and decor wise and they have told me even when its left in its worst state come May deposit easily covers it.

I'm told 13000 net for the academic year is very easy and 1 friend actually airbnbs his place over the summer for and extra few grand.

What are other peoples experience with this, am i only hearing the rosier side of it from mates.

Askthe EA

kingdomfan wrote: »

Myself and the misses are looking at a house within a 2 minute walk from Sligo IT.

https://www.daft.ie/sligo/houses-for-sale/ballinode/11-copper-river-ballinode-sligo-1801147/

We have friends who rent to students and swear by it, it seams to remove the biggest fear we have on an investment property, over holding! with no rent. They are gone in May without fail, and a new batch in in September.

Only very basic needs required furniture and decor wise and they have told me even when its left in its worst state come May deposit easily covers it.

I'm told 13000 net for the academic year is very easy and 1 friend actually airbnbs his place over the summer for and extra few grand.

What are other peoples experience with this, am i only hearing the rosier side of it from mates.

Managed a few of them in my time. In my opinion it really depends on a case by case basis. If the house is surrounded by other student houses then complaints tend to be a minimum. Its true you dont get over holding, also its true that you dont tend to get arrears. If you set it up right initially they tend to work ok.

They are more hands on though, the property will need regular inspections. Most student LL's I know choose to take payment themselves at the house for this reason. Keeps the students on their toes. If you go for second years, you dont tend to get the move outs you can get from first years when they realise their course isnt for them.

I'd go for it, a lot less risk than a long term tenancy.

BrokenArrows

You do have to consider the scenarios where you have tenants drop out of college and leave the accommodation.

You have to consider when deposits dont cover damage. Plenty of stories of parties getting out of hand and holes in walls, broken windows etc.

Failure to pay rent so you end up having to chase them for money.

It is probably a good investment but the trade off between the easy money is that you have to be a bit more hands on with the property.

Samuel T. Cogley

You won't be able to AirBnB without planning permission under the new laws coming in in June.

robp

Samuel T. Cogley wrote: »

You won't be able to AirBnB without planning permission under the new laws coming in in June.

It is remarkable that this is the case for student housing. If any dwellings should have any exception student homes would be ideal

Samuel T. Cogley

robp wrote: »

It is remarkable that this is the case for student housing. If any dwellings should have any exception student homes would be ideal

They might very well get planning, they'll just need to apply for it under the new laws. It gives the neigbours the opportunity to object if they think it's going to cause a nuisance.

kingdomfan

Offer submitted so fingers crossed, thanks for all your input guys, good food for thought.

Eric Cartman

1) If the neighbours are a family with young kids, elderly or pretty much anything thats not a house share between lads under 35, don't
2) Aim for second year or above students for stability
3) Work out all your figures with 0 euro accounted for AirBNB, its sligo, not dublin, see it as a bonus if it happens.
4) Be prepared to cut the grass yourself and show up for broken things / neighbour calls etc..

TSQ

kingdomfan wrote: »

Myself and the misses are looking at a house within a 2 minute walk from Sligo IT.

https://www.daft.ie/sligo/houses-for-sale/ballinode/11-copper-river-ballinode-sligo-1801147/

We have friends who rent to students and swear by it, it seams to remove the biggest fear we have on an investment property, over holding! with no rent. They are gone in May without fail, and a new batch in in September.

Only very basic needs required furniture and decor wise and they have told me even when its left in its worst state come May deposit easily covers it.

I'm told 13000 net for the academic year is very easy and 1 friend actually airbnbs his place over the summer for and extra few grand.

What are other peoples experience with this, am i only hearing the rosier side of it from mates.

Am thinking of doing the same and for much the same reasons. But I believe it can be difficult to get insurance for a student let. Which insurance company do your friends use?