Investing in student buy-to-lets

Capitalising on the student market can be an excellent opportunity for a landlord. However, you must understand and adapt to their unique needs for a smooth renting experience. This article considers how to serve your student tenants best and make the most of this lucrative market.

DEBUNKING STUDENT TENANT STEREOTYPES

Contrary to popular belief, not all students are party animals who will damage your property. Most students invest a considerable budget in rent and are keen on protecting their deposit. Hence, they’re likely to treat your property with respect and care.

“With understanding and flexibility, you can make the most of this market and create a beneficial arrangement for you and your tenants.”

WHY RENT TO STUDENTS?

Renting to students can be more profitable than traditional tenants for several reasons:

• High demand in student areas ensures consistent occupancy.
• Student tenancies typically last at least 12 months, providing stability.
• A property can house multiple students, maximising earnings.
• Students usually are okay with outdated furniture or decor, reducing renovation costs.

IDEAL PROPERTIES FOR STUDENTS

The perfect student accommodation typically includes three bedrooms and large communal spaces. Additional bathrooms or toilets and good transport links to the nearest campus are also beneficial.

HOMES OF MULTIPLE OCCUPANCY (HMO)

Students often prefer an HMO contract as it allows them individual responsibility for their rooms and deposits. This arrangement makes subletting easier during the summer holidays, and replacing a single tenant is simpler than replacing all.

FURNISHING FOR STUDENT TENANTS

Student tenants usually expect a fully or partially furnished property. If you’re renting to students, consider including:

• Appliances like washing machines, fridge freezers, oven/hob.
• Basic furnishings include carpets/curtains/ lampshades, beds and wardrobes.
• A desk and chair for each room
• Other essentials like a sofa, vacuum cleaner, lawn mower and bins.

BEING A GOOD LANDLORD TO STUDENTS

Renting to students requires a different approach compared to professionals or families. Here are a few tips:

• Be transparent: Ensure your tenants know your rules and the consequences of breaking them.
• Provide clear explanations: Instructions on basic maintenance can prevent panic and incorrect decisions later.
• Be reliable: Show your tenants that you’re dependable. Prompt responses to issues will encourage them to do the same.
• Regular check-ins: Maintain communication with your tenants about their needs and property maintenance. Remember to respect their rights to access and privacy.

RENTAL EXCHANGE SCHEME

This scheme allows tenants to build their credit score while paying their rent. It motivates them to pay on time and could be a win-win for both parties. Renting to students may require adjustments, but the returns can be worthwhile.

With understanding and flexibility, you can make the most of this market and create a beneficial arrangement for you and your tenants.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.