How To Turn A Family Home Into A Student Investment With Examples

Updated 2023

Thinking about your next move? If you own a property and want to explore new investment opportunities, why not consider converting it into student accommodation? Converting your house into a student rental can lead to some of the highest yields in the property market. Learn more about the potential of buy-to-let products that can help you finance your student investment while enjoying the benefits of this lucrative market.

Buying properties to let to students offers some of the highest yields on the market. If you are looking to move home, then rather than selling your house, you could consider converting your home in to a student investment. There are plenty of buy to let products that are available to enable a re-mortgage to raise finance against your home when it is let to students.

In heavily populated student towns like Lancaster, students tend to head in larger groups to private rented houses after spending their first year on campus.  A typical 3 bedroom terraced house with only 1 full bathroom could potentially be turned into 4 double bedrooms (or more) with potentially each tenant getting their own en-suite. It is not vital that en-suites are included but it could make your ROI higher and more appealing to prospective students.  

A Mighty House Refurbishment

4 WAYS TO CREATE MORE SPACE:

1. Living Room to Bedroom Conversion: Converting the front downstairs room (usually a living room) into a bedroom AND therefore turning what would commonly be a dining room into a communal living space with enough seating space - where possible include a small dining area
2. Chimney Removal: Knocking down the chimney breast - surprisingly they take up a lot of space (plus we don’t want to be burning fossil fuels anymore, so it helps protect the planet)!
3. Waterproof Basement Bedroom: Tanking the basement so it is waterproof, and turning it into a bedroom
4. Attic Transformation: An attic conversion into a bedroom could mean constructing a dormer window or simply adding a Velux window if there is sufficient roof space not to require a dormer.

By embracing creativity and sustainability, we achieved a more functional and environmentally conscious living environment. These thoughtful modifications serve as an inspiring example of how small changes can yield significant improvements, both in terms of space utilization and our collective efforts to protect the planet.

Yield

Obviously, not every house is the same and they all have their own unique layout. However, providing there is enough living space per person, then having more bedrooms means more money for the Landlord. Mighty House are a sales, lettings and property management company but we also specialise in the project management of refurbishing student investment properties for our student branch - Mighty Student Living. In Lancaster, one of our newly refurbished en-suite bedrooms in 2019 would let between £115 - £117 per week. So, if there is a group of 6 students each taking a room at £117 per week and signing up for 48 weeks a year then the gross annual income is £33,698.

In 2023 the region of rent for student properties is between £102-£260 with properties varying from shared bathrooms to ensuites to individual flats, make sure you do all the checks on the property and find out what is best for you to manage. We also offer a landlord management service. 

There are some minimum requirements to comply with fire safety and in some cases these will include provision of fire doors to bedrooms and kitchen and mains interlinked smoke detectors but often it is not much more onerous than this.

Expectations as regards to the standard of living accommodation for students are only getting higher - and rightly so. The houses are let furnished and modern furniture can make a world of difference along with care taken to layout rooms that feel good and make good use of space. It is attention to detail in the final fit out that is so important, and a little bit of thought and care goes a long way.

To make your investment more attractive to let you could include a tumble drier as well as a washing machine, plenty of fridge, freezer and cupboard space so all students feel like they can store what they require. Fast WIFI is also expected for studying purposes so this needs to be centrally located in the property, in order to reach every room. A nice touch would be to include USB points in the plug sockets and TV points in each room.

There is a small amount of work to create a property that appeals to students but help from a competent agent who can handle everything for you is possible. The additional monetary returns on investment often make this extra set up well worthwhile.

In summary, this case study showcases smart ways to transform your house into student housing, offering valuable tips for student property investment. By converting rooms and removing chimneys, you can optimise your living space efficiently, making it more functional and eco-friendly for 2023 standards and regulations. These changes not only enhance your living environment but also provide a lucrative investment opportunity for student housing, find out what properties for sale in Lancaster we have and start your journey today.