Things Landlords Need to Know Before Renting to Student Tenants

The market of student tenants is a goldmine, but it has its specific set of problems. A student’s needs are usually more particular than those of either a family or a professional, and a property being let out to students is somewhat different from one which is rented out to families or working professionals. Let us break down what landlords need to consider before leasing their property to student tenants.

Understanding Student Tenants

Student tenants are very different from the other types of tenants a landlord may deal with. Many of them are younger and first-time renters, perhaps less prepared to handle financial responsibilities or to take care of a property as compared to other tenants. Many landlords fear either late payments or property damages. However, once a proper screening process is put into place, along with clear communication, the renting process for students can be relatively painless and very profitable.

It means student renters would normally look for properties that are proximal to their university or college, have access to public transportation, and possibly major amenities. They also look out for price sensitivity, so landlords should be competitive with other available student houses.

Key Considerations When Renting to Students

Tenancy Agreements and Guarantors

Renting to student tenants, one of the primary concerns is the assurance of receiving rent payments on time. Since most students would not have a regular income, students would be a riskier proposition in the eyes of landlords. To minimise this risk, landlords often ask for a guarantor -usually a parent or guardian – who will foot the bill when the student defaults on the rent.

It is also prudent, when drawing up a tenancy agreement for student tenants, to have clear clauses concerning property maintenance, noise levels, and use of communal spaces. Setting expectations upfront prevents disputes, and the students will know what is expected of them in that regard.

HMO Licensing and Property Safety

Many student rentals are classed as HMOs, which means that they have more than one tenant who is not a member of the same household. If you plan to rent your property to three or more students, you may require an HMO licence; this depends on your local council.

You should never ignore the safety factor when letting student tenants. Make sure that your property is well-equipped with all required safety measures, including smoke alarms, carbon monoxide detectors, and annual gas checks. Also, landlords can try inspecting the property on a regular basis in order to keep it in fine condition and resolve problems as soon as possible.

The Advantages and Challenges of Renting to Students

Renting to students is a very lucrative business, especially if the location of the property is within or very close to the university and college. The demand is highly probable to be high between July and September each year; hence, you will have tenants every year without much hassle. On the downside, though, students change addresses more frequently, so your property is put through more wear and tear, needing upkeep and refurbishing more often than it would be with other tenants.

The other major issue might be noise and differences in lifestyles especially if the property is let to a group of students sharing a home. Detailed guidelines and a solid tenancy agreement can lessen such issues, though.

Can a Landlord Change the Locks?

Knowing the law on your rights and obligations is an important feature of the landlord-tenant relationship, especially when the tenants happen to be students. Unless by the order of the court for eviction, landlords are not allowed to replace the locks; it is an illegal eviction and attracts strict penalties. In the event of a dispute, regular communication with the tenant student sorts such disputes amicably.

How Much Notice Does a Tenant Have to Give a Landlord to Move Out in the UK?

The length of notice required from a tenant to their landlord in the UK depends on the type of tenancy agreement in place. In assured shorthold tenancies, which are the most common for student lettings, usually the tenants are required to give one month’s notice, provided they are paying their rent on a per-month basis. This is, of course, unless the agreement specifies a different period, which in that case takes precedence. In the case of a fixed-term tenancy, however, tenants cannot simply move out early without both parties agreeing to it or there being a break clause included in the agreement.

It is important that the notice period and terms are highlighted in the tenancy agreement to avoid confusion and may lead to disputes later on.

Conclusion

It can be a very rewarding venture for landlords if they are prepared and take the necessary precautions. Meeting the particular demands of the student tenants, keeping in line with legal requirements, and clear agreements in place can ensure beneficial returns for the landlord with a guaranteed flow of tenants and an assured good rental yield. In this way, careful management and open communication with the landlord will allow maximum realisation of the potential of the student rental market.