Property Q&A #6: Are studio apartments a good buy-to-let investment?


Studio Apartments can split a crowd of property experts; while all acknowledge they can be a good investment, some would say a one or two bed would be favourable.

I firmly believe that a cleverly designed, well located studio apartment in the can punch above its weight as a buy-to-let opportunity, as long as it ticks the right boxes.

Here’s what to look out for when choosing a studio apartment as your investment property.

Good Design

Built in Storage: Floor space is a luxury in a studio and it may be difficult for a tenant to fit in a wardrobe etc. Look out for built in storage that provides a solution to this problem.

Light: Ensure that the living space is light and airy, making the studio feel larger and liveable.

Separated Bedroom: Studios with a divide between living and sleeping areas will be more appealing to tenants; after all, who wants to sleep in the kitchen?

Affordability & Demand for Tenants

Affordability: Overall, studios are aimed at tenants with budget in mind – ensure that the proposed rent per calendar month is affordable for the location.

Demand: How many other studios are there for sale in the area? Will your property be filling a gap in the market or is the market flooded with similar studios?

Good, Long Term Investment Opportunity

Yield: Studios should earn a higher yield than their one and two bed counterparts.

Capital Growth: Capital growth is usually a little slower with a studio apartment, so bear in mind that a studio should be considered as a longer-term investment.

Maintenance costs: Studio apartments tend to attract a more transient tenant, who tend to rent for around 12 months. This can lead to more wear and tear, and higher maintenance costs – however this is balanced by the space being smaller and cheaper to maintain.

Every investment decision must start with your goals and financial situation. Determine what you can afford to buy and then from there, develop a property strategy – remember to include studio apartments in your plan!

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Property Q&A #6: Are studio apartments a good buy-to-let investment?

Property Q&A #6: Are studio apartments a good buy-to-let investment?


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.