can't rent my student houses

Why not sell them?

cd

It sounds like you know what your doing and what the problems are. If you can't rent your houses then you're not competing properly in the market place. You either have to drop prices or improve the quality of the house, eg decorate. Your problems may well be caused by irrational leveraged investors, but there's no point dwelling on that fact.

I do agree with you on all your points, especially point 3, I was a student in debt and once it hits a certain level it truns into a numbers game and you put it out of your mind. So, improve your houses, drop the rent, or sell them. It's my feeling that we are going to see a major correction to the housing market, but I suspect it's going to be 5+ years of steadily declining prices.

Check out page nine of this

the graph entitled Long term real house prices trends. If you've got any sympathies with chartists then a long slow decline in the prices of house looks a certanity.

That will probably pose a whole new load of problems.

The Capital Gains might be painful...

cd

In message , steph writes

You can compete with these landlords on price because you do not have to pay much to the bank - this puts you in a bit of a driving seat in the current market.

Given that you can compete aggressively on price, you could try to make your properties "attractive" enough to motivate the students to be willing and able to pay each terms' rent up front, out of their grant/loan, (or whatever it is these days). You could also be very choosy about the tenants you take.

It's probably not sustainable, and the market will sort itself out - but where it will end up is anybodys guess - at least you can weather the storm better than those with big loans.

Possibly, but perhaps you should be looking at a different market/area.

Dont forget that, given that some of the costs of an empty house pass to the tenants as soon as they are let, it can be worth taking quite a bit less than you really want, just to improve your cashflow.

Oh yeah, I didn't even think of that.

I was thinking that it may not even sell for ages at the "right" price. Current market conditions would support that?

Or have you just come from there?

A lot of my student mates are moving into brand spanking new houses where rent is only about 70 a week (less than hall in some cases) and they come with all sorts of things such as en suite bathrooms, balconies, BBQ area etc.

The main 2 things that will affect their choices are price (if you can hit

50 you should be golden) and location to the Uni. The closer it is the more likely people will want to live there.. Indeed my friend just moved back to halls for his 3rd year so he is just a 2 min walk away from the main campus.

I dont think having massive flashy houses will be a massive factor in their decision if the alternatives are a lot cheaper and closer to clubs/uni.

Depends on the area as well though I guess.... in major cities it might be hard to locate near clubs becoz students will go everywhere, whereas here they are all a walk away from eachother.

Of course your houses have broadband internet access......?

In Leeds we have brand new privately built tower block "Halls" with en-suites going for £59.95. Within walking distance of Uni. Poli. and Park Lane College.

Easy to save £2.00/day by being able to walk.

10/12 years ago our 2 eldest stayed in unbelievably squalid student lets (decoration and fittings from the1950's). I'm sure it was a factor in the youngest one not signing up for the 3rd year that would have turned his HND into a degree.

His younger sister who's away at Uni now just wouldn't accept it.

Daughter is moving into a University house in the centre of Lancaster, next door to Sainsbury's, opposite the bus station with not only high speed internet but direct access to the Uni's network.

Kinda hard to compete with that, except on price.

DG

Indeed, this is what my friend is moving into. It is privatley owned but it is just like halls.

all the student houses round here are walking distances away!

Was that in Leeds as well? All the houses I have seen have been fairly decent - although I guess the owners realise they need a standard these days!

In my uni there are adverts EVERYWHERE advertising student accomodation, not directly from letters but other students who need 1 or 2 extra housemates (one of my friends has a spare room going that he and his housemates have to pay for to keep staying in the house!) - this leads me to believe there must be a hige surplus around here.

Edge Lane / Kensington district of Liverpool.

Sounds like it. I still see houses being converted into student flats around the Headingley/Beckett's Park area of Leeds with plenty of accomodation being advertised.

DG

if you can just sit tight, there are a lot of idiots out there playing around with houses atm, mainly due to channel 4 shows i think. my dad rents to students in nottingham,and hes having much the same problems, in fact hes now turned away from students to another market altogether! , in oxford however the market is still strong, people are still commuting from miles away or living in uni accomodation 10 miles away , or 40 mins on a clear bus route ( one side of oxford to the other at rush hour is ridiculous)