Investing in PBSA: Our Do's and Dont's

The student rental market has been a lucrative market for property investors for years, benefiting from consistently growing demand, competitive yields, and lower void periods.

This doesn't mean that this market comes without risk and challenges, and for investors that are new to this sector, it's crucial to understand the key do's and dont's when taking their first step to invest. We've put together some of our top tips to help you secure the best investment possible.

The Do's of PBSA Investment

• Do your research.
  Every investment opportunity needs to be thoroughly researched, with the risks weighed against the rewards. Looking into the local area, ensuring your investment is within close proximity to university campuses and has good transport links and social amenities is key.
  
• Understand your responsibilities.
  As an investor and a landlord, it's important to understand your role and responsibility. Investing with a reputable company will assist you here, and having a good management company will also ensure that your property is looked after and kept in-line with regulations.
  
• Understand demand
  A key part of investing is understanding the different markets and what the demand is for each of them. Students looking to rent will have very different requirements and desires compared to young families, for example, so knowing what the student market are looking for in a rental property and focussing on this will help steer you towards the best investment options.

The Don'ts of PBSA Investment

• Focus on the short-term.
  Any investment opportunity needs to be approached with a long-term mindset, and going into an investment only focused on the short-term will inevitably result in a negative experience.
• Cut costs.
  Some investors will look to cut costs to maximise their yields, but this will inevitably come back as a bigger issue in the long-term, whether it be due to damage in the property, arrears from bad referencing, or legal implications from poor management. It can also result in poor engagement and longer void periods if your property is of lower quality than competing options.
• Self-manage with no experience.
  The key to success in most investments is having a strong management in place, who will advertise your property, deal with any issues, ensure your tenants are well-referenced and not fall into arrears, as well as keep the building up to code. If you have no, or little experience in these fields, but look to maximise income with no agent in place, this can result in huge issues that implicate your entire investment. For a truly successful, hassle-free investment, having an experienced and reliable management company is a must to keep your income strong and your investment beneficial.

If you've been looking to enter the PBSA investment market, speak to our teams today for more information on the best locations and our opportunities to explore.