Student lets are a lucrative source of income for many landlords. Properties in student areas are consistently in high demand and tenants generally commit to a rental period of at least 12 months. The ability to rent room by room drives up rental yields.
Some landlords are unwilling to let to students due to concerns about wild parties and upsetting neighbours. It is true that a property may experience more wear and tear and require additional maintenance at the end of the tenancy but overall the reality is that most students are respectful, pay their rent on time and look after the property. They can be a hassle free and reliable source of income, especially as most are backed by a guarantor.
Keeping these four tips in mind can help to ensure a stress free student let.
Communication is key. Ensure that all relevant information is communicated effectively to the tenants at the start of a let. Hold a check in meeting with all tenants and write a leaflet, clearly identifying your expectations and their responsibilities, as well as information such as bin days and recycling schemes. Sometimes students fail to report maintenance issues which is frustrating to the landlord and often students have a grievance that they feel landlords are ignoring their issues. The simplest way to overcome these communication issues it to use a residents management company to act on your behalf.
2. Sign on the dotted line
The best way to ensure that disputes are easily resolved is to have everything in writing, viewed and signed by the tenants. Asking each tenant who plans to reside in the property to read and sign individually confers joint responsibility and makes it more likely that each person will abide by the terms and conditions. Requesting a guarantor is another good way of ensuring the rent is paid. Students are unlikely to have a financial history or credit check so parents or guardians will usually act on their behalf. A signature to this effect is a good safeguard against missed payments and damages owed at the end of the tenancy. It is a good idea to take out additional insurance of your own, specialist student letting insurance will cover the property fully.
Keeping a thorough log of the condition of all items in the property and an in depth inventory will reduce the risk of damage and negate the need for debates over wear and tear at the end of the tenancy. If you are fully furnishing the property, which most students will require, then it will save money in the long run to choose sturdy durable furniture. Implementing good security measures is advisable as student homes are often a target.
If you are still concerned about whether your property is being well looked after, a residents management company can help to alleviate your concerns. Alternatively, insist on regular checks to ensure the property remains in a good state and no rooms are being sublet. This is the first time that many young people have lived independently so regular gentle reminders can be helpful for peace of mind.
Whilst renting to students may seem like a difficult journey, done well it can bring significant returns on your initial and ongoing investment.