Wealthy foreign students make London’s west end a good investment proposition.

Landlords rental prices in the west end of London are rising due to a trend for foreign students coming to study in London with larger than average accommodation budgets.

LDG, a specialist west end estate agency has noted that there is a lack of good quality properties to rent in areas such as Bloomsbury. This creates a good opportunity for landlords to buy to let in this area. It is suggested that some of the foreign students coming into the area and looking for flats have budgets up to and above £1000 per week.  This budget is not for the run of the mill student digs where most poor and struggling students find themselves but they are looking for high quality apartments, which are centrally located.  Apparently location is the number one issue for students looking for a flat; they want it to be close to their university with amenities close by for them.

According to LDG, most of these students with larger than average student budgets are coming from Asia, the Middle East, Europe or Russia,  these groups also apparently will often be paying in cash.  Unless these foreign students have a relative in the UK as a co-signer then they must pay a minimum of 6 months up-front.  It is suggested to be the case that around 90% of these students are happy to do so.  Six months rent on about £1000 a week is £25,000 that wealthy foreign students will cough up for the right place in the right location.

So it looks good, up-front rent for 6 months at a good price.  Let’s all go to Bloomsbury, not to live – I’ve heard its getting kind of pricey.

However, even if your tenant is paying 6 months up front maybe still have a look at getting some tenant screening from a previous landlord or employer- as great as £25,000 of rent up front is a chance to up at, you won’t want to be paying £25,000 in damages if they wreck the place.  Also be weary of tenant looking to pay upfront, make regular inspections to make sure all is well and property is being looked after.  Tenant screening is always necessary no matter how much they are offering you.