Letting to university students is one of the segments with the most sustained demand in Spain. With more than 1.7 million university students who need accommodation away from home, cities with large campuses have very dynamic and profitable student rental markets.
The university cities with the most demand
Madrid (UCAM, Autónoma, Complutense, Carlos III), Barcelona (UB, UAB, UPC), Valencia (UV, UPV), Salamanca, Granada, Seville and Santiago de Compostela are the main hotspots. Cities with a single large public university (Salamanca, Valladolid, Murcia) have cycles that are strongly shaped by the academic year.
The yield on student lets
A 3-bedroom flat near a campus can be let by the room at €350-500/month each. If you let all 3: €1,050-1,500/month, compared with €900-1,100 for letting the whole flat to a family in the same area. The gross yield can reach 7-10%, but with more intensive management.
The risks to manage
- High annual turnover (9-10-month contracts for each academic year)
- More wear and tear on the property, especially the shared areas
- A higher risk of unpaid rent (students with no income of their own)
- Empty summer months if there are no replacement tenants
How to minimise the risks
Require a parental guarantee in the contract, use individual contracts for each room with a clear termination clause, set up a photographic inventory at the start and end of each contract, and set the rent slightly below the top of the market to reduce turnover and void periods.
Find flats near a campus: Go to RadarPro to identify assets in university cities, with yield analysis included.
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