Lettingagent.com offers advice for those considering entering the student property market.
Letting to students is a popular way to realise value from your property investment. But there are things you should keep in mind to help ensure success.
Think carefully about location Local knowledge is invaluable. Know where the ‘student areas’ are and be wary of up-and-coming areas. Similarly, avoid places where students wouldn’t want to live in or would not be welcome. Not all university towns are equally profitable. Do research by talking to local agents about what yield to expect.
Choose a reliable letting agency An efficient, experienced and professional letting agent is crucial for landlords with demanding full-time jobs. A third party can save the hassle of dealing directly with tenants when things go wrong – and can save a considerable amount of money in property repairs. Landlords should choose letting agents that are registered with an official organisation, such as the Association of Residential Letting Agents (ARLA).
Register with the uni accommodation service Being on the university database is an easy way to advertise a property directly to students and offers them a quick, hassle-free way to access property details and managing agent’s contact details.
Be aware of health and safety regulations Landlords should pay particular attention to the HMO Licensing and Housing Act legislation to ensure that they comply with the rulings and any recent amendments. Those renting flats to students should check this information carefully as some are exempt from certain clauses.
Insert a clause in the lease to allow for potential damage This will allow for circumstances where students fail to follow the procedures required (for example, where damages are caused). Students should be given a clear inventory and a flat inspection should be carried out the first day of tenancy so that breakages or damages can be noted at the end of the term. A list of emergency numbers and useful contacts and dates (e.g. ‘bin day’) can also prove very helpful.
Get referencesTenants must have a reference from their previous landlord. An untrustworthy tenants means hassle, worry and expense. Make sure the rental contract clearly states when the rent is due – and in what format – to help avoid any problems over rent payment.
Consider what a student needs Student properties don’t need to be cluttered with accessories that are more than likely to be broken during the course of their tenancy. The interior should be comfortable, clean and functional with desks, chairs, bookshelves and lamps in each bedroom.
Avoid false economies Though no one would advise buying expensive carpets, curtains or sofas, the furniture provided for students does need to be hardy and able to withstand a bit of ‘wear and tear’.
Get building insurance This is important for all buy-to-let properties. Make sure your property is adequately covered – even something as small as a burst pipe could end up causing thousands of pounds worth of damage. Building insurance will sometimes cover a limited amount of public liability, so landlords should check the wording of agreements carefully.
Sort out council tax forms Properties occupied only by students are exempt from council tax. Ensure all tenants fill out the relevant forms and return them as soon as possible.