Are you considering renting out your property to students? Then you’ve come to the right place.
In this article, we’ll discuss the ins and outs of letting out your property to students. Whether you’re new to letting, diversifying your portfolio or have been a student landlord for a while, we can offer you greater insight into the pros and cons of renting to students.
What is a student let?
First of all, let’s go back to the basics and understand what differentiates a student let from other types of lets.
A student let is a type of student accommodation that caters specifically to the needs of students during their academic tenure. These letting properties are typically situated in proximity to universities or colleges and are characterised by multiple bedrooms and shared living spaces. Landlords can expect high demand, consistent competition, and potentially high yields from these lets, as they are rented out for fixed periods that align with the academic year, and commonly run for 12 months.
Do I need to worry about the Renters (Reform) Bill affecting my student let?
In short, no, you don’t. The Bill was scrapped on Friday 24th May 2024, as it didn’t make it through to the final rounds before Parliament was dissolved in preparation for the general election.
What are the pros and cons of letting to students
Engaging in the student rental market can be beneficial for landlords. Students tend to be flexible with property aesthetics, prioritising functional essentials such as reliable WiFi and location convenience. With a growing student population, landlords can enjoy high rental yields, low void periods, and often receive rent upfront, aiding cash flow.
The benefits of letting to students:
- Consistent demand: The number of student applicants in the UK has reached record highs for the past three years.*
- Predictable timings: Most student lets follow the same rhythm as the academic year and run from late Summer/early Autumn for 12 months. This means you can plan ahead more easily in terms of renewing or replacing tenancies.
- Basic furniture: In most cases, the furnishings you supply simply need to be functional and fit the space they’re in. Students tend to make do with what’s given, meaning your property doesn’t need to be perfect.
- Financial security: Most students will have to provide a guarantor who meets certain requirements and can step in as soon as the student defaults on their payments.
The drawbacks of letting to students:
You may also find that there are some challenges involved when renting to students. For example, there could be a higher degree of wear and tear on the property, the necessity to provide furnished accommodations, and the presence of strong competition from purpose-built student housing. Additionally, it may be that some students lack the necessary budgeting skills to ensure rent is paid on time. This is why ensuring students have guarantors is an important aspect of any student let. Lastly, managing potential antisocial behaviour is an additional responsibility that you as a landlord may have to contend with.
