Landlords often shy away from renting out their properties to students but the experience of doing so can be hugely fruitful; especially in areas with lots of study facilities but little room for reasonably-priced student-specific developments.
The cliches of young people partying are no longer really relevant, as the younger generations appear to be more ethically-responsible, and with the cost of living rising all the time, now is proving a prosperous time for those able to offer specifically-tailored student accommodation.
Demand
Areas with large student populations provide consistent and strong demand for properties; often pushing prices up slightly and ensuring agreements and contracts are signed quickly. Student tenancies typically last for a minimum of 12 months, which lowers the need for end-of-tenancy cleans and administration – and provides great value potential, as each bedroom will usually be filled with at least one paying tenant.
Of course, for most students (and particularly those of university age), moving into a student property is the first time they’re able to take on the responsibility of living away from home and so despite the stereotypes, more care is taken than many assume.
House rules
In order to best manage students as tenants, landlords should lay out clear and easy-to-follow ‘house rules’ and remain transparent in all communications. Insurance covering tenants can be extended or amended to include student-specific clauses and it is critical that if the property reaches HMO (Houses in Multiple Occupation: that is, occupied by at least three people not from the same household or family) limits locally, the proper licenses are obtained. While not a ‘must’, it’s also advisable for landlords to seek and copy proof of the tenant’s council tax exemption certificate upon their arrival, as an inability to prove this later may leave the landlord liable to pay any outstanding tax bills.
Furnishing
Ideally, basic furniture should be provided that can be reused as tenants come and go. The most economical way for landlords to furnish student accommodation is through furniture packs, which provide identical sets for bedrooms to ensure there’s no argument between tenants as to who takes which room and allows for consistency. With durable and high quality furniture supplied for longevity, the sets can be assembled and installed on-site by professional staff for maximum efficiency and minimal fuss!
How to market
Most estate agencies in student-heavy locales will offer specific student marketing packages, although it’s also worth landlords getting in touch with local universities to discuss any direct options. All standard legal responsibilities of a landlord apply when renting to students and indeed the university or college may even be able to intervene and/or take action in the event of any unwanted or anti-social behaviour – so maintaining a good relationship with local study facilities makes good business sense for landlords looking to rent student accommodation long-term.
There’s vast potential in rental properties for students and building a positive reputation in this market can be hugely beneficial. With high-quality furnishings, clear communications and a little bit of admin, you’re good to go and ready to take on repeat tenants with guaranteed continued income!