by Iain Maitland

Interested in investing in student accommodation. Here's my advice...

Potential investors need to see what occupancy rates the management company is achieving and what returns investors have received.

In addition, potential investors should look round for themselves and see the quality of the properties and the efficiency of the management team.

I think that there are a number of other issues to consider in this market. Students must feel that they are getting value for money. Thus, the rents can't be too high because then the properties won't get fully occupied.

Secondly, there has to be an effective management team in place to keep the properties full and also to properly maintain them.

Thirdly, investors need to be sure that the properties have been 'robustly' built. You don't want to face a refurbishment bill of a couple of thousand pounds in a couple of years.

Lastly, and importantly, if you need to sell will you be able to? I suggest that it will be easier to sell a 'proper' apartment than some of the other student properties currently on the market."

Finally, I know that some student properties offer 'guaranteed' returns of 10 per cent in the first year etc. But what will they pay in the second year? In the third year, and so on? You need to see if the figures you're being given are real figures and that the properties offer steady consistent returns every year.

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