Should Landlords Rent to Students?
Landlords should know that there’s always a high demand for rental properties in student areas and it’s more profitable than traditional lettings. Also, this market is very consistent as there will always be students needing somewhere to live. Usually, students will need to let accommodation for a minimum of 12 months leading to less stress for the landlord in finding new tenants, as there’s time to get organised.
Landlords should know that the best time to market student property can differ, but usually, students begin searching for accommodation to let at any time from January onwards for rentals for the next academic year, which starts in August or September due to them attending University.
How Can You Protect Your Income?
It’s not easy to guarantee your rental income in the same way you might with regular tenants as students will usually come from living at home with their family, which means they can’t get a reference.
Consequently, you should make sure each student has a guarantor, normally a parent or guardian, as they won’t have a regular income of their own. The guarantor will be responsible for paying the rent in the event the student fails to do so, this will ensure you as a landlord do not lose money on your lettings.
What’s the Best Accommodation for Students?
The ideal student property will need a minimum of three bedrooms, and places such as the lounge and kitchen need to offer large, communal spaces, as these have appeal to large groups.
It’s also advisable to have more than one bathroom or toilet, especially if there are several students sharing, as this will be a major benefit when you’re marketing the property. The addition of a garden would also be a bonus as students enjoy their outdoor space.
Research shows that overseas students tend to prefer hotel-style studio apartments, so it’s important to know your market when it comes to them. The best location should ideally be within 30 minutes of walking distance from the campus. Market student lettings in the same way you would market a regular letting, such as online and through local letting agents like us who can help those in need of lettings.
Advantages of Letting to Students
- Usually, students are not too picky about the furnishings, the decor, and having the latest in terms of accommodations. They are likely to be looking for low-cost accommodation as it's probably their first rental.
- When it comes to student lettings, you can usually charge per room as there is often more than one student tenant living in the same property.
- If you have properties near universities, you're more likely to find suitable tenants, especially if they are close to the campus area.
- With student accommodations, they are usually only for the short term which means that you won't be tied into any long contracts.
Most of the times, students are seen to be reliable tenants as they are not too demanding and overall, fairly easy-going. Another benefit is that you will see demand for student accommodations every year and given the short-term nature of these lettings, this is ideal.
Disadvantages of Student Lettings
- Landlords should consider that there may be higher bills maintenance costs when letting students. However, this could also be offset against the cost of not needing to provide expensive furnishings. Also, as most students will be coming straight from living with their parents, they will expect the property to be fully furnished, as they won’t have any furniture of their own.
- The landlord must consider specific legislation for student lettings. As you’re likely to be let to several sharing occupants who aren’t a family group, you must comply with legislation for Houses in Multiple Occupations (HMOs).
- In addition to a landlord’s usual legal responsibilities, you must make sure smoke detectors are installed and that you arrange a check of the electrics every five years. Be sure that the letting property isn’t classed as overcrowded. This means there must be a separate bedroom for every single person aged over 21, for each couple and for every two young people who are over ten years old.
- There must be adequate washing and cooking facilities and all shared facilities and communal areas should be kept clean and in a state of good repair which again can cost you as the landlord, time and money.
Contact Us for Properties to Let
If you’re looking for support and advice in lettings for properties, then please get in touch with our property experts.
Call our letting agents on 0121 426 3220 or you can send us an email here.