Renting to Students in 2024: Essential Tips for Landlords

Renting to students can be a lucrative opportunity for landlords, especially in cities with a strong university presence. However, it comes with its unique set of challenges, from high tenant turnover to property maintenance. If you’re considering renting to students in 2024, here are essential tips to help you navigate this market successfully according to letting agents in Stroud.

Understand the Student Rental Market

Know the Demand in Your Area:

Before diving into the student rental market, it’s important to research the demand for student accommodation in your area. Cities with large universities, such as London, Oxford, and Manchester, tend to have high demand for student rentals.

• Proximity to University: Properties located within walking distance or close to public transport routes leading to the university will be more attractive to students. The closer your property is to the campus, the higher the demand.
• Types of Students: Consider the type of students you want to attract. Undergraduate students may prefer shared houses, while postgraduate students or international students might look for quieter, self-contained flats.

Set Competitive Rent Prices:

Setting a competitive rent price is crucial for attracting student tenants. Students are typically on a tight budget, so ensure your rent is in line with other student properties in the area.

• Research Local Rents: Check what other landlords are charging for similar properties in the student rental market. Too high a price will drive away potential tenants, while pricing too low can reduce your profitability.
• All-Inclusive Rent: Offering rent that includes utilities such as water, electricity, and internet can be a major selling point for students who want a simplified budgeting process.

Ensure the Property Is Student-Friendly

Provide Furnished Accommodation:

Most students are looking for furnished accommodation, as they often don’t have their own furniture.

• Essential Furniture: Ensure that the property is fully furnished with essential items like beds, desks, chairs, wardrobes, sofas, and kitchen appliances. Providing good-quality furniture can make your property more appealing and justify higher rent.
• Study Spaces: A desk and comfortable chair in each bedroom can be a great feature for students, offering them a dedicated space to study and work on assignments.

Robust Fixtures and Fittings:

Students tend to live a more active lifestyle, so you’ll want to make sure your property is durable and easy to maintain.

• Hard-Wearing Materials: Choose sturdy, hard-wearing materials for furniture, flooring, and fixtures. For example, laminate flooring is more durable than carpet and easier to clean.
• Minimalist Design: Keep the decor simple and neutral. Avoid highly personal or luxury finishes, as students may not maintain the property to the same standard as other tenants.

Understand Legal and Safety Requirements

Meet Health and Safety Standards:

Student landlords must ensure that their property meets all health and safety regulations. Failing to do so can result in legal penalties and put tenants at risk.

• Gas and Electrical Safety: Ensure that your property has up-to-date gas safety certificates and regular electrical safety checks. Landlords are legally required to conduct an electrical safety inspection at least every five years.
• Smoke Alarms and Carbon Monoxide Detectors: It’s mandatory to have working smoke alarms on each floor of the property and a carbon monoxide detector in rooms with solid fuel appliances.

Consider Licensing for HMOs:

If you’re renting to multiple students, your property may fall under the category of a House in Multiple Occupation (HMO). This applies when there are three or more tenants from different households sharing a property.

• HMO Licensing: Many student properties are HMOs, which require a licence from the local council. Ensure that you apply for the appropriate licence if your property qualifies. Failing to secure an HMO licence can lead to fines and legal issues.

Prepare for Higher Tenant Turnover

Be Ready for Shorter Tenancies:

Student tenants usually rent for a fixed academic year, which means you will have to manage higher tenant turnover compared to other rental markets.

• 12-Month Contracts: Although students typically only occupy the property for nine months, many landlords opt for 12-month contracts. This ensures that rent is covered during the summer break, though you may need to find tenants willing to stay during that period.
• Be Prepared for Void Periods: Factor in potential void periods at the end of the academic year. It’s common for student properties to be vacant for a few months over the summer, so plan accordingly.

Efficient Property Management:

Managing frequent tenant turnover requires efficient property management. Consider whether you want to manage the property yourself or hire a letting agent.

• Letting Agents: A letting agent can handle advertising, tenant screening, rent collection, and maintenance requests, which can reduce the workload for you. This is particularly helpful if you have multiple student properties or are not based near the rental property.
• Property Inspections: Regular property inspections are key to ensuring that the property is being maintained. Schedule these throughout the year to catch any issues early and prevent costly repairs.

Screen Tenants Carefully

Verify Tenant Information:

While students may have limited rental history, it’s still important to carry out background checks to ensure they can afford the rent and will be responsible tenants.

• Parental Guarantors: Many students won’t have a long credit history or stable income. In such cases, asking for a parental guarantor is common practice. This guarantees rent payments even if the student cannot pay.
• References: If possible, request references from previous landlords or the student’s accommodation office. Even though students may not have much rental experience, references can still provide valuable insight into their reliability.

Groups vs. Individual Tenants:

Consider whether you want to rent your property to a group of students (such as friends who rent the entire house together) or rent rooms individually.

• Group Letting: Renting to a group is often easier, as you’ll deal with one collective tenancy agreement. Groups are more likely to stay together for the entire academic year, reducing tenant turnover.
• Individual Rooms: Renting rooms individually can be more lucrative, especially if the property is in high demand. However, this requires separate agreements with each tenant, increasing administrative tasks.

Prioritise Communication and Clearly Spell Out What You Expect

State Conditions Clearly in the Tenancy Agreement:

To manage student tenants, there needs to be a full tenancy agreement. In that agreement, the clear rules, responsibilities, and expectations which need to be adhered to should be clearly issued so there is no confusion later on.

• Damages and Maintenance by the Tenant: Ensuring tenancy states who is responsible for maintaining the property in good condition, reporting any damages, and stating who is responsible for what maintenance, such as garden maintenance, taking out the rubbish, etc.

Conclusion:

Renting to students in 2024 can be quite a rewarding experience for the landlord, as demand is constant and returns are sound. This, however, requires some careful planning, preparation of the property, and understanding of unique needs that student tenants have. If you follow these key tips, you will be able to manage quite successfully, cut risks, and ensure a good experience for you and your tenants.

Stay ahead of the curve with the freshest news updates by exploring TodayFirstMagazine!