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Letting out student housing can be more demanding than running a traditional buy-to-let, but it typically offers greater financial rewards.
If you’ve been a landlord before, you should know the ropes, but you’ll need to brush up on the additional student landlord regulations and responsibilities before you can begin letting to students.
If you’ve never been a landlord before, it will be a steep learning curve! But with diligence, dedication, and proper guidance, you can navigate the complexities and reap the benefits of this lucrative market.
If you’re unsure where to begin, why not use this article as your starting point? We have compiled a list of our 16 must-know tips for new student landlords. From selecting the right property to finding your first tenants, we’ve got you covered.
Be Sure Student Lets are Right for You
Before you take the plunge, make sure you know what you’re getting yourself in for and that you have enough time to carry out the role of student landlord.
Letting out student accommodation tends to be more demanding than managing a traditional buy-to-let, so before you begin, make sure that you’re prepared to:
Answer Lots of Queries
Many students are living away from home for the first time, so don’t be surprised if you get a call asking how to operate the dishwasher or washing machine! Student tenants have usually never rented before and may need more hand-holding through the process, so be prepared to be patient.
Be On-call 24/7
You should also be prepared to be on-call for your tenants 24/7 to respond to emergencies and other issues. Consider whether this would fit in with your current lifestyle and responsibilities.
Appoint an Emergency Contact if You’re Unavailable
Have you considered that you will not be free to go away on holiday without first appointing someone responsible and reliable to be on-call whilst you’re away? You will need to make sure you know someone reliable who is willing to step in as an emergency contact for your student tenants if you are unavailable or want to go away on holiday.
Pay for a Letting Agent if You Don’t Have the Time Yourself
If it sounds like it could be more work than you can manage, then you could use the services of a letting agent. Some letting agents offer fully-managed letting services for landlords, but these come at an expense, which will eat away at your rental income profit.
Additional Property Maintenance
The fixtures, fittings, and furniture in student lets tend to be subject to far more wear and tear than those in a traditional buy-to-let. Be prepared for accidental breakages, spills, scuffs, and bumps, meaning the property requires more regular repairs and maintenance than a traditional let.
The Potential for Anti-social Behaviour
While you will find that most students are very reasonable, they sometimes like to party. Let’s put a disclaimer here: not all students throw raucous parties in their student housing, but it sometimes happens. So, you’ll need to be prepared to calmly and tactfully deal with noise complaints and disputes about anti-social behaviour if they arise.
If you still think managing a student let is the right choice for you, let’s discover some top tips for getting started.
Take Your Time Finding the Right Student Property
We cannot stress enough how important it is to take your time to find the right student property to invest in. The property you choose will directly impact how lucrative your venture is.
Choosing the right property will help you to avoid experiencing void periods and ensure a strong return on investment.
Some important factors to consider when selecting a student property to invest in include:
Location
Most students want to live within walking distance of campus, amenities, and nightlife.
Property Size and Layout
Consider the type of property that will be attractive to students. Check that it has enough bathrooms and toilets for the number of tenants living there. Students are often attracted to properties with good-sized communal areas.
Property Condition
Students need a safe and comfortable living environment free from health hazards. Check carefully to ensure the property does not show signs of having damp problems.
Rental Market Demand
Do your research and check out the demand for student properties in the area.
Research Rental Yield
Researching the average rental yield in the area will help you to assess the potential profitability of the investment property.
Inform Your Mortgage Provider if Letting to Students
Don’t neglect to inform your mortgage provider if you plan to let your property to students to ensure you do not breach your mortgage agreement.
If your student property is going to be a house in multiple occupation (HMO), then you will require a specialist buy-to-let mortgage for HMOs.
Research and Understand Student Landlord Regulations
Student landlords are responsible for ensuring that their tenants have a safe and comfortable living environment.
To achieve this, you will need to thoroughly research and understand all relevant legislation and regulations to ensure that your student let complies with legal requirements and safety standards.
Failure to do so could risk your tenants’ safety and result in legal disputes, financial penalties, or even prosecution.
Different types of student accommodation are available, including purpose-built student accommodation (PBSA) and shared student houses. Many student buy-to-lets fall under the category of house in multiple occupation (HMO) and so are subject to additional regulations.
New student landlords will need to determine if their property qualifies as an HMO and, if so, apply for the necessary HMO licence.
According to information on the government website, a rental property is classified as an HMO “when it is rented out by at least three people who are not from 1 ‘household’ (for example, a family) but share facilities like the bathroom and kitchen.” You can apply for an HMO licence on the government website.
Student HMOs are also subject to additional regulations surrounding fire safety and overcrowding; you can find out more about these in our blog, ‘student landlord laws and obligations’.
Get the Right Student Let Insurance Policy
Student landlords require specialist student landlord insurance rather than your standard buy-to-let insurance. The right insurance policy will give you peace of mind that you’re financially protected against unforeseen events and potential risks associated with renting to students.
Insurance policies tailored to student landlords often cover accidental and malicious damage and loss of rent due to void periods.
Take your time to do your research, shop around, and compare policies to make sure you’re getting the best deal.
Consider Renovating to Boost Your Student Let’s Rental Value
Before you begin letting your property to students, it may require a few renovations to ensure it complies with all the relevant regulations.
Aside from these essential renovations, you may consider making additional strategic changes or improvements to the property to increase its rental value.
Turning a living space into an extra bedroom or adding another bathroom can increase the property’s appeal and boost its rental value.
However, make sure you familiarise yourself with the HMO overcrowding regulations before you go ahead to avoid potential legal issues.
Decide Who Will Pay the Bills: Landlord or Students
If you’re wondering who pays the bills for a student let, then this is a question that you, as the student landlord, get to decide the answer to.
Some landlords leave it to the students to sort out their own utility bills and internet, but many choose to include these costs in the rent.
It may sound like less hassle to leave your tenants to sort out their own bills, but it will likely make your property less attractive to students. Generally, students prefer the simplicity and convenience of having all bills included in their rent. Including them with rent can also help avoid potential issues if bills go unpaid.
However, if you decide to handle the bills, clearly outline who will be responsible for what in the tenancy agreement.
Provide the Council With Proof That Students Reside at the Property
Full-time students are exempt from paying council tax, so providing that all of your tenants are classed as full-time students, that is one less bill to worry about!
However, you will need to provide the council with proof that your tenants are all full-time students to avoid receiving an unexpected bill. Most councils request that you provide them with each tenant’s Certificate of Student Status.
Furnishing Your Student Property
When making decisions regarding decor and furniture for your student let, always prioritise durable and easy maintenance options.
Your property’s furniture, décor, and furnishings will be subject to considerable wear and tear, so durable and easy maintenance solutions will be the most cost-effective.
Paint walls instead of wallpapering them to allow for quick touch-ups as and when needed. Carpet can quickly become grubby, smelly, stained, and unhygienic from heavy footfall and spills. Where possible, install laminate, vinyl, or tiles that are easier to clean in place of carpet.
Student housing will need to be fully furnished, but you should think smart when buying furniture.
Flatpack furniture from Ikea may be affordable, but it can also be quite flimsy and may not last very long in a student house.
Buying solid and durable furniture for your student let can be made affordable by buying second-hand. Just ensure the furniture is still in good condition and meets any relevant fire safety standards.
When buying seating, avoid anything that could easily be stained. Leather sofas and plastic or wooden dining chairs can easily be wiped clean.
Focusing on durability and ease of maintenance will save you time, effort, and money in the long run while providing tenants with a comfortable and functional living space.
Secure Your Student Let
According to Northumbria Police, students are three times more likely to become a victim of crime than any other type of resident. Unfortunately, student lets tend to be prime targets for burglaries, so installing security measures can help to keep your property and tenants safe.
Security measures to consider include:
- High-quality locks on external doors.
- Locks on individual bedroom doors.
- Security lighting.
- Burglar alarm.
As a student landlord, you are responsible for ensuring your student let is safe and secure for your tenants. Prioritising security measures will give your student tenants and their parents peace of mind and help your property stand out.
Tailor Your Property to Appeal to Students
If your student accommodation experiences high demand, it’s reasonable to increase the rental price accordingly. Properties that appeal most to their target audience tend to have low occupancy rates, minimising the risk of costly void periods for the landlord.
Simply put, if students are fighting to get a room in your rental property, it signifies a more profitable investment.
So, how can you make your property more appealing to students? First, research your target audience and find out exactly what students are looking for in a student let.
Here are some ideas to inspire you.
High-speed Wi-Fi
If you do decide to make bills all-inclusive, it is worth investing in high-speed Wi-Fi. A fast and reliable internet connection is usually one of the most important amenities for students who will spend a lot of time researching assignments online, streaming music and tv shows, gaming, and chatting with friends online.
Communal Areas
Your student buy-to-let should have a cosy and comfortable communal area where students can spend time together and socialise. Consider including a television in the living room and good quality white goods in the kitchen. Adding something a little extra, like a cheap coffee machine in the kitchen or an electric log burner in the living room, can boost your property’s appeal without much extra expense.
Low-maintenance Outdoor Space
If your student let has a garden or yard, this is an opportunity to make your property shine!
Think low-maintenance, as you can’t expect students to remember to mow the lawn or water the flowers, but you can still create an attractive and functional space where students can gather to socialise and enjoy the sun during the warmer months.
Add a patio, garden furniture, solar lighting, and hardy flowering shrubs or herbs to transform an uninspiring outdoor space.
Eco-friendly
Gen Z students, in particular, have a growing awareness of climate issues and the environmental impact of their lifestyle choices. Increasing your property’s energy efficiency by improving insulation and incorporating energy-efficient appliances and lighting can help attract responsible tenants.
Advertising and Marketing Your New Student Let
New student landlords shouldn’t be fooled into thinking they can simply post their advert on Rightmove and be done with it.
If you want to generate plenty of interest around your rental property and minimise the time that your property is left standing empty, then you’re going to need an advertising and marketing strategy.
First, you need to understand your target market and where they hang out online. This will give you a better idea of where to focus your marketing efforts.
Create a Professional Advert
Don’t be tempted to quickly snap a few dark and dingy photos on your phone for your advert. A professional photographer will showcase your property in a much better light, helping you generate more interest and viewings.
Make sure you use a photographer experienced in creating virtual property viewing experiences. Offering video tours of the property is very convenient for students who do not live nearby and may otherwise struggle to come and view the property in person.
Advertise in More Than One Place
Whilst online property portals like Rightmove and StudentPad may be a good place to start, you should also contact the local university to find out whether they have a platform you can advertise on.
Leverage Social Media
Don’t forget to leverage social media when advertising your property. Students typically spend a lot of time on social media, so landlords have a great opportunity to reach their target audience using social media platforms. Try searching for Facebook groups for nearby universities and find out if you can share details about your property on them.
Request a Guarantor for Student Tenants
Performing a credit check on a student may not reveal very much. Because they are often young, many students fail credit checks because they have never used a credit card or paid their own bills before. This is why most student landlords request that students provide a guarantor.
A guarantor is a person, usually a parent or guardian, who agrees to cover the cost of any rent or damages if the student tenant cannot pay.
Making it a term in the contract that all tenants must provide a guarantor can provide student landlords with better financial security and reduce the risk of rental income loss.
Document Your Student Let Inventory
Because student lets can experience significant wear and tear, it is crucial to maintain a detailed inventory of the property’s contents and condition.
Before your tenants move in, take high-quality photographs of each room and individual items, capturing any existing damage or wear.
When the students arrive, walk them through the inventory and provide them with paper documentation of the inventory to avoid any disputes at the end of the tenancy.
Student Landlords Should Be Organised
There’s a lot to keep track of when managing a student let, so it pays to be organised.
You’ll need to create a system to help you to keep track of important dates like rent collection day, end-of-lease agreement, property inspections, and gas and electrical safety checks. It can help to use apps or software to set reminders for important dates.
Important and sensitive documentation like contract agreements, invoices, tenant personal details, and communication records will also need to be stored in a way that is secure, organised, and easily accessible.
Using an all-in-one landlord software like Landlord Vision can help to keep you organised, streamline your processes, and even automate certain tasks, saving you time and making life as a new student landlord a lot less stressful!
Don’t be a Stranger to Your Student Tenants
Once you’ve welcomed your first student tenants into the property, maintain contact with them and build a friendly rapport. Encourage open communication by providing multiple channels for your tenants to reach you, whether by phone, email, Whatsapp, or another messaging platform. This will help create an environment where students feel comfortable discussing any issues they encounter, helping you catch any problems early and enhancing your reputation as a student landlord.
It may sound like a lot to take on initially, but once you’ve got your head around all the regulations and ensured that your property is compliant, running a student let isn’t too different from managing traditional buy-to-let.
