How to rent a room to a student17-08-2022 | Property Occupants
Year by year, record numbers of students are attending university or some form of higher education. This, in turn, creates an unimaginable demand for accommodation. For landlords, this is great news. Students often require longer rental periods, and such high demand ensures your property won’t remain empty when a lease ends.
But renting to students comes with its own responsibilities and expectations. The student lettings market is more complicated than it first seems! Make sure you know what you are getting into when you begin renting a room, with this helpful guide.
Why rent to students?
In student areas, competition for rental properties can be fierce. This leaves you, a landlord, at an advantage. Not only is competition strong, but it’s regular and consistent. This means that you don’t have to worry about a property standing empty for a long period of time, something that puts you at risk of an expensive council tax bill.
As in line with the usual length of a university term, student rental agreements generally last for 12 months! This alleviates a great amount of stress for a landlord, who might devote lots of time to finding and securing new tenants.
Best of all, you can expect students to offer particularly high yields. The rental yield is the annual return you can expect from your rented property. Students provide high yields, given the duration of their tenancies and the scale of their demand, meaning a profit is always guaranteed.
Can landlords refuse to rent to students?
Landlords can refuse to rent to students, and they often do. In fact, up to seven out of 10 UK landlords would not let their property out to a student because of the perceived risk of property damage. It may be likely that properties face more wear and tear when inhabited by students, who have a reputation for being party-going! It is also true that you might have to shell out more on maintenance costs as a result, when the tenancy ends.
Students also might expect properties to be furnished, which is something other tenants often don’t demand. These factors are rights for refusal, but you must weigh up the potential profit and loss before you make such a decision. Students bring in a lot of money to rental properties, and security deposits are a safe mechanism for you to help ensure that damage is prevented.
Importantly, landlord’s contents insurance is also a good way to help keep your property in good condition – regardless of whether students are staying with you. From your carpet to your chairs and tables, CIA Landlords can provide appropriate cover that alleviates any concern about renting to students you may have.
Do students need a guarantor to rent?
Given that the cost of renting and living far exceeds the annual rise in student loan allowance, although it isn’t legally required and therefore not essential, students often do need a guarantor to rent a property. Most landlords demand one.
A guarantor is a good idea so that, even with no full-time wage, a student’s rent is never missed. There’s always a guarantor to cover the shortfall! For landlords, this is invaluable insurance against losing money from the tenancy.
It’s up to you, as the landlord, to decide whether you wish to implement such a measure. In certain areas, where rent is cheaper in comparison to other properties elsewhere, you may decide it is unnecessary.
Renting to students: the best tips
For some rapid-fire tips that you, as a landlord, should take on before renting out a room to a student – read on.
- Market your property at the right time: Most students begin looking for student flats for the upcoming year as soon as November, and interest peaks in January. This is usually for properties with tenancies starting in August/September.
- Make sure your property is suitable: The best properties for students have at least three bedrooms with a large kitchen and lounge area! More than one bathroom will also heighten the appeal of your property, as will a central location to the university. A garden isn’t always necessary, but it is preferred.
- Advertise on the usual websites: Even though there are sites that exist just for student properties, the usual websites such as Rightmove tend to do just as well at attracting student tenants. Make sure your property is on the university’s list of approved rentals, too. This will secure your room as a viable student let!
Get landlord insurance for your student property through CIA Landlord Insurance
Above all, don’t forget to protect your income and property. This tip is the one you must listen to. CIA Landlords can help find you the best and most cost-effective landlord insurance policies to keep your property safe. Don’t leave your property to chance, with such a wide variety of comprehensive insurance types on offer.
For more information, advice, or assistance, get in touch with our expert team today. You can either call 01788 818 670, request a callback online at a time that best suits you, or – if you know exactly what you’re after – get a personalised quote online.
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