A survey carried out by student lettings app SPCE, found that 7 in 10 UK landlords won't rent to students. The most common reasons for this are that landlords in the UK are worried about damage being caused to the property and that students are more untrustworthy than other renters. But while student renting may conjure up images of ‘80s sitcom The Young Ones, today’s students are a little bit different.
With years of experience renting properties to students in London, we know that these perceptions aren’t true. So today we’re showing you why you should always consider ditching those preconceptions and rent to students.
1.Students can give you greater financial stability
As a landlord, it is your right to ask your tenants for a guarantor, who will be able to cover the rent in the case that it isn’t paid.
While this isn’t common when renting your property to working professionals and families who have a regular income, it’s commonplace in the student rental market and students will normally be able to name a guarantor with no issues.
This offers landlords more financial security than when renting to other renter groups and even if students can’t provide a guarantor, they are often financially supported by their parents, which typically ensures they have the means to pay.
It’s also common for tenants to pay their rent in advance and in lump sums – usually by term rather than month by month – which gives you additional financial security.
2.London has some of the world’s highest-quality students
The quality of students in London may be higher than you think.
With two of the top 10 universities in the world in London, students attending these institutions will be doing so due to their ability to study hard and are perhaps more likely to be spending their time head first in books than throwing house parties.
So, less house partying and more library time = your property is probably in safe hands!
3.Demand for student properties is high
As mentioned before, 7 in 10 landlords don’t like renting to students, which means that in some areas, there’s likely to be a shortage of properties and greater demand – especially those within walking distance of universities.
If your property is close to one of London’s 40 higher education institutions, chances are there will be lots of students looking for properties like yours in the area and as a landlord, you may have no trouble arranging back to back tenancies.
4.Students are likely to secure properties well in advance
Students will often look for properties that are available from September, which is the start of the academic year.
Unlike working renters, students tend to begin their property search well in advance of when they want to move in – sometimes as early as June – which is great news for landlords. This can help reduce periods where your property is empty, earning you more money throughout the year.
It’s also common for students to pay for their accommodation for the whole year, not just the academic year, so landlords don’t have to worry about having contracts of less than 12 months.
If you want to learn more about timelines, read our blog on the Best Time of Year to Rent Out Property.
5.You can rent out more of the rooms
This point is more appropriate for landlords with rental houses, rather than apartments. But if your property has an additional reception room or dining room, it may be possible to convert this into a bedroom.
Unlike families who are likely to want more entertaining space, students usually demand less communal space and are more concerned with the number of bedrooms.
We see many period houses where the downstairs living space is used as a bedroom – particularly the front room – which means greater earning potential for you as the landlord.
However, if you plan to convert rooms into bedrooms, you need to make sure that you have the correct HMO licence where necessary.
Learn about common questions like, "can I rent a room in my house?"here.
While renting your property to students may not be the obvious choice, there are some clear benefits to you as a UK landlord. When it comes to rental yields and demand, the student market is highly competitive and renting to students could be a way of maximising the potential of your investment.
