The Landlord’s Guide to Student Lets
According to a snapshot study by The House of Commons Library, 2.
86 million students were attending higher education institutions in the UK between 2021 and 2022*. This is a big market to tap into, so it’s no wonder why so many of today’s landlords opt for student-friendly rental properties. If you’re considering one for your next investment, here’s everything you need to know.
Safety regulations
All rental properties must adhere to government safety standards, regardless of who your tenants are. Here are the key safety regulations which must be met in order to legally let out a home in the UK:
- Each bedroom must have a smoke alarm fitted
- The property must have a written risk assessment carried out
- All escape units must be protected by automatic closers fitted onto fire doors
- A fire risk assessment must be carried out and any recommendations should be implemented
- A mains-powered fire alarm must be correctly fitted
This is not an exhaustive list, so it’s vital to check the legislation in your local area. You could also speak to a local agent who can advise you on any upcoming legislative changes or specific requirements for rental homes in your location.
Registering as a HMO
If there are three or more students renting your property, and they share a bathroom or kitchen, then the property is classed as a House of Multiple Occupation (HMO). This means your property will need specific licensing granted by your local authority, so get in touch with them to find out whether this applies to your student rental.
Request a guarantor
Whatever the reason for renting out their property, most landlords will ask for a guarantor. The landlord must safeguard themselves against missing rental payments, which could be used to settle the property’s mortgage. Student guarantors are particularly important, as most students are new to the world of managing their finances alone and asking for a parent or a close family member to act as a guarantor places you in a safer position as a landlord.
Council tax
Council tax is waived for students, but to allow this, you must acquire an exemption certificate from the council. You will need proof of your tenants’ student status from the university, otherwise, council tax will apply.
Furnished properties
Most students are new to independent living and therefore don’t have much furniture to bring to the home. If you’re keen on attracting this demographic, it’s a good idea to make sure your property is fully-furnished and well-equipped with white goods. Your property may also benefit from more student interest if you supply broadband and Wi-Fi, or even a TV for the communal area.
Planning outside of the academic year
Renting to students means you’ll have predictable void periods, such as the end of the school year. Ensure your insurance policy covers periods of voids or empty property and consider hiring a letting agent who can quickly source suitable tenants.
How to avoid deposit disputes
Students, for the most part, are not experienced renters, and there could be a few risks associated because of this. However, a lack of experience in renting doesn’t ultimately link to poor treatment of your property, and there are a few precautions you can take as a landlord to avoid deposit disputes.
Perform a detailed inventory of all your fixtures, fittings, contents, and décor before your tenants move in. Make sure to include photos and thorough descriptions of the property’s condition and each item in your inventory.
Keep a consistent line of communication from the beginning to the end of the tenancy. This will help you avoid disputes and miscommunication later down the line. Students may require more regular assistance and guidance than seasoned tenants, so it’s important that someone is on-hand to help.
Provide a move-in pack so your tenants know what they can expect from you, and what you expect from them.
Include the right clauses in your tenancy agreement so that deposit deductions can be negotiated if necessary. A well-drafted tenancy agreement will protect your rights as a landlord, as well as your tenants’ rights.
Conduct regular inspections and make sure to write them into your tenancy agreement.
Do you need help managing your property portfolio? Our expert team is here to help. Get in touch with us today for more information
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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