What is the Biggest Risk with Student Property Investment?
If you ask us, student property is one of the safest forms of property investment in the UK – in many cases even safer than traditional buy-to-lets. We’ll save the detailed reasons for another post, but today we want to tackle the question we a lot from potential investors:
“What’s the biggest risk when investing in student property?”
The answer is pretty simple & whilst having a few different potential causes it’s entirely preventable with the right approach.
The Biggest Risk: Not Letting Your Student Property for the Next Academic Year
The number one risk for student landlords is failing to secure tenants for the following academic year.
Unlike standard rentals, the student letting cycle is highly seasonal. Most students secure their accommodation for the next academic year between October and January. While some are still looking between February and June, the numbers drop significantly.
If you’ve not let your property by January, you could be facing a year-long void – and in student HMOs, that can mean a substantial loss of rental income.
Why Does This Happen?
From our experience, there are three common reasons:
1) Buying Outside the Preferred Student Areas
In cities like Liverpool, student areas are well-defined with clear boundaries. Students want to live close to campus, nightlife, and amenities (Wavertree and Kensington). Buy outside these hotspots, and your property will be harder to let, no matter how nice it is.
2) Poor Letting & Marketing
Whether you use an inexperienced letting company or try to self-manage without the right tools, ineffective marketing is a fast-track to an empty house. Student property relies heavily on timing, presentation, and visibility across the right platforms.
3) Overpricing the Rent
Even with high demand, students are price sensitive. If your rent is significantly above market value, potential tenants will simply choose better-priced options nearby.
How to Avoid This Risk
The solution is straightforward: work with an experienced student letting agent who knows the local market inside out.
A good agent will:
- Market your property at the right time and on the right platforms
- Advise you if rent needs adjusting to attract viewings
- Ensure your property meets current student expectations in terms of décor, safety, and amenities
- Proactively manage viewings and sign tenants before the peak letting window closes
If your property is in the right location, in safe and lettable condition, and marketed well, there should be zero reason it sits empty. ZERO.
Pro Tip: Monitor Viewings Early
By December or January, if your property hasn’t had the expected number of viewings, a smart letting agent will advise whether you should:
- Adjust the rent slightly
- Refresh certain features (e.g., repainting, replacing worn furniture)
- Improve the property’s online presentation
Even a small rent reduction – say £5-10 per week – can be enough to secure tenants and is far cheaper than risking a full year of lost income.
Final Thoughts
Student property investment is very low risk when managed correctly. The main danger is missing the letting window – but with the right location, competitive pricing, and an experienced letting agent, you will avoid this completely.
For landlords and investors looking at student HMOs in Liverpool, the market is buoyant, demand is high, and with the right strategy, your property will never sit empty. Visit our contact page to reach out!