Letting To Students

28th June 2017. By Hayley Connolly

 

Should I become a student landlord?

 

Letting to students can bring an excellent return on investment, but students can be a tricky client group to deal with.  Students are often unorganised and can take more management than letting to a family or a retired couple for example.  There are pros and Cons……

 

Why students make good tenants

 

* Landlords can let the property to more tenants; Students don’t mind living closely together and enjoy each other’s company – so landlords can bring more tenants in.

* Landlords can buy less attractive properties – as students are not so fussy about the area – providing its close to the university or college.

* Landlords do not have to keep the property maintained to the same standard as they do for letting to professional’s for example.  It is common for ‘Student Digs’ to be a little tatty – and this often suits the students as there is less expected of them in terms of keeping the property maintained.

 * Students often have quality guarantors – worried parents at home prepared to step in and pay the rent – although it is wise to ask for the rent up front before the beginning of term.  Landlords then have the benefit of all the rent in lump sums, in advance, to use on property maintenance or investment.

* Student rents can be a little higher as the risk to the landlord and the property is higher.

 

Down side of letting to students

 * Students often only want a tenancy agreement to run for the term, as during breaks they can return home and live for free.  Therefor the property could be empty, or part empty during academic holidays – particularly the summer.  The higher rents paid can balance this out slightly – but it must be factored in to annual costing and calculating potential income and profits.

* Students often make up and break up!  Students may move out with little or no notice, other students may move in without your knowledge – sub-letting is a common problem.

* When students move out – they tend to leave behind all their rubbish!  This can be costly to have moved/collected.  They may also leave the property dirty, and slightly ‘trashed’ – needing deep cleaning and re-decoration throughout.  This can put the property out of action for a few weeks and put a dent in the profits.* Students come with little credit history and few references due to their age, this presents a risk to the landlord regarding non-payment of rent, and vandalism to the property.

 

With all of these Pro’s and Con’s in mind – we advise vigorous ‘checking in and out procedures’, and property management.  This would include things like (but not be limited to)

 

* Rent paid a term at a time up front

* Guarantors to cover any vandalism/damage, and rubbish removal at the end of the tenancy agreement.

* References from weekend employers/school etc…this will help build a picture of the type of person you are letting to.

* Request that parents accompany the student to view the property in advance (where possible), giving the Landlord a chance to ‘vet’ the family!

* Keep décor and furnishings simple and basic – nothing to valuable and fussy.

* Keep furnishings and décor practical – for example - fully tiled bathrooms to keep cleaning easy, wooden easy clean floors in highly populated areas – like the hallways, and lounges.  Paved gardens instead of lawns and flower beds that need to maintained.

 

Call us now on FREEPHONE 0800 6122007 for advice and a free – no obligation Landlords Buildings Insurance Quote.

 
 

 

Recent News Articles

 

Public Liability For Electricians

 

Public Liability For Plumbers

 

Public Liability For Gardeners/Landscapers

 

Public Liability For Painters And Decorators

 

Bespoke Insurance For A Coach House

 

Home Insurance For A Coach House? Easy!

 

Own A flat? Legal & Liability Insurance For Landlords

 

Liability Insurance For Steel Workers

 

Coach House Insurance Is A Complicated Issue

 

Home Shield Insurance Launches New Website

 

£15,000 Of Debt Is The New Normal

 

Do Young People Need Life Insurance

 

Life & Critical Illness Insurance - Enhanced Offer For Northants Chamber Members

 

Business Protection - Premium Refund For Northants Chamber Members

 

Home Insurance - Getting The Basics Right

 

Home Insurance - Escape Of Water Claims