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There are several benefits to being a student landlord, including high rental yields and high demand for student housing, but landlords renting to students also take on some additional obligations and responsibilities.
As a student landlord, you will find that many of your tenants are living away from home for the very first time. You have a duty of care to provide them with accommodation that is both safe and comfortable to live in.
The laws and regulations surrounding the UK’s rental industry are designed to protect the rights and interests of both the student tenant and the landlord.
A lot of the legislation that applies to regular landlords also applies to student landlords, meaning that you will have many of the same responsibilities as a regular landlord.
There are however some additional rules and responsibilities involved in letting to students that landlords should ensure that they are familiar with before they welcome their first tenants.
The best way to avoid problems when letting to students is to do your research before you begin letting your property. Familiarise yourself with all the relevant legislation to ensure that the property and service that you are offering to your student tenants is fair, safe, and legal.
Failure to comply with landlord regulations can result in fines and even prosecution.
In this article, we will look at how the responsibilities of a regular landlord and a student landlord differ, and explain any specific laws and obligations related to managing a student let.
Which Landlord Regulations and Responsibilities Remain the Same for All Landlords?
A lot of the same legislation that applies to regular landlords also applies to student landlords. Important landlord legislation that student landlords also need to be familiar with include:
- The Landlord and Tenant Act 1985.
- The right-to-rent policy (contained within the Immigration Act 2016).
- Tenant Fees Act 2019.
- The tenancy deposit protection legislation (contained within the Housing Act 2014).
- Landlord licencing policies (contained within section 3 of the Housing Act 2014).
Obligations that apply to all landlords, including student landlords, include:
- Register with the Information Commissioner’s Office.
- Perform right-to-rent checks.
- Understand the Tenant Fees Act 2019.
- Use a government-approved Tenancy Deposit Scheme.
- Provide tenants with an Energy Performance Certificate, a valid Gas-Safety Certificate, and an Electrical Installation Report.
- Follow strict health and safety guidelines relating to:
- Fire safety
- Electrical safety
- Gas safety
As well as all of the key landlord responsibilities listed above, student landlords have some additional obligations to their student tenants. Let’s find out a little more about what these are.
Student HMO Landlord Responsibilities
Many student lets are shared houses occupied by three or more unrelated individuals. This type of arrangement classifies a property as an HMO (house in multiple occupation).
If your student let is an HMO, then you will need to be aware of the specific legislation and regulations surrounding HMOs as well as all the standard housing and rental regulations.
Apply for an HMO Licence
If any of the following points apply to a student HMO, then it is defined as a large HMO and the landlord is required to obtain an HMO licence.
- it is rented to 5 or more people from more than 1 household.
- some or all tenants share toilet, bathroom, or kitchen facilities.
- at least 1 tenant pays rent (or their employer pays it for them).
Student HMOs are subject to the same licencing requirements and regulations as regular HMOs.
Different local councils have different licencing rules surrounding HMOs, so you may still require a licence even if none of the points above apply.
The government website has more information about applying for an HMO licence.
Understand Student HMO Regulations
Landlords managing student lets with an HMO licence should familiarise themselves with the latest HMO regulations as laid out in the houses in multiple occupation and residential property licencing reform. The main points for student landlords to note relate to HMO room size regulations and waste disposal.
Student landlords that hold an HMO licence are subject to some additional rules and regulations when it comes to room sizes. This helps to avoid overcrowding and improve fire safety in student lets, particularly those where multiple people will be sharing communal areas like living spaces, the kitchen, and the bathroom.
Comply with HMO Bedroom Dimension Regulations
Overcrowding is a criminal offence and student landlords could be fined if they are found to be in breach of HMO overcrowding regulations.
Some student landlords convert extra living spaces into additional bedrooms to increase the amount of rent they can charge for a property. Landlords that plan to do this should pay particular attention to the dimensions of these rooms to ensure they are not breaching overcrowding regulations.
According to HMO licencing rules, rooms are overcrowded if:
- More than one person sleeps in a room measuring 6.51m2.
- More than two people sleep in a room measuring 10.2m2.
It’s important to note that any rooms smaller than 6.5m2 are considered too small for anyone over the age of 10.
Comply with HMO Waste Disposal Regulations
Student lets that are shared by three or more people are also likely to produce a large amount of waste. Landlords are required to ensure that their student let has suitable refuse storage facilities for the storage and disposal of rubbish that is waiting to be collected.
Additional Student Landlord Responsibilities
There are a few additional differences between managing a regular rental property and a student let. Student tenants may have higher or more specific needs and requirements than your regular tenant and the property may require more regular maintenance. This creates several additional responsibilities for student landlords.
Create a Student-focused Tenancy Agreement
A professional student tenancy agreement should be drawn up by the landlord before a tenancy starts. Your tenancy agreement is the legal contract between you and your tenants and should make each party’s rights and responsibilities during the tenancy clear. A professional and fair tenancy agreement can be key to running a successful student let.
Most student tenancy agreements are fixed-term assured shorthold tenancy (AST) agreements. Landlords can choose either individual tenancy agreements for each tenant or a joint tenancy agreement.
When an individual tenancy agreement is used, each tenant is liable solely for their own rent, deposit, and actions. This type of contract is commonly used in HMOs where tenants are renting individual rooms.
With a joint tenancy agreement, all tenants share joint liability for rent and other terms of the contract. This can provide the landlord with better protection as it means that if one tenant falls behind with payments or chooses to leave the property, the other tenants are responsible for covering these payments.
Most student tenancy agreements are for a fixed term of 12 months, although this can vary at the landlord’s discretion. Student tenants don’t often stay at a property for longer than a year or two. Whilst this may create more admin work finding new tenants regularly, there tends to always be high demand for student property, so finding tenants for your student let shouldn’t be a problem.
The student tenancy agreement should be signed by you and your new tenants before they move into the property and each tenant should receive a copy of the signed tenancy agreement for their reference.
Perform Student ID Checks
As well as performing the standard right-to-rent checks that all landlords are required to carry out to check the immigration status of potential tenants, student landlords should also verify that their tenants are enrolled at an educational institution.
You may need to be able to prove that the tenants in your property are students to claim a discount on council tax or for insurance purposes.
Inform your Local Council that Students are Living at the Address
In most cases, student lets are exempt from council tax if they are only occupied by full-time students.
Student landlords should inform the local council when a property is being occupied by students so that they or their tenants can claim any discounts they may be eligible for on council tax.
Most local councils need to see a Certificate of Student Status to prove the tenant’s student status, however, some may accept their university student number and course details.
Without proof of the tenant’s student status, the property will still be eligible for council tax payments.
Fully Furnish the Property
Whilst furnishing the property may not be essential for regular landlords, it is a key requirement if you plan to let student housing.
Students are usually living away from home for the first time, so they rarely own their own furniture. For this reason, there is an expectation that student housing is fully furnished and ready to move into.
Because student properties are usually subjected to above-average wear and tear, it’s wise not to spend a fortune when kitting out the property. Buying high-quality items second-hand can help to keep the cost down.
When selecting furniture and soft furnishings for a student property, landlords should always check that they meet current fire safety and resistance requirements.
Repairs and Maintenance
Whilst all landlords are responsible for repairs and maintenance of their rental properties, student landlords often find that their properties experience greater wear and tear than a standard let and are also more susceptible to becoming damaged.
From student get togethers to silly accidents, students living away from home for the first time are bound to make mistakes.
It is the student’s responsibility to inform the landlord of any damages or breakages as soon as possible, especially if they pose a risk to health and safety. The landlord should then aim to resolve the problem as soon as possible.
All-inclusive Bills
Some landlords choose to make their tenant’s rent payments all-inclusive of bills. Whilst this is by no means a legal requirement, it is far more common in student lets than in regular rental properties.
Organising utilities and internet and paying multiple direct debits or standing orders can be a lot of work for students who are living away from home for the first time. It can also make it more difficult for them to budget their money each semester. Offering all-inclusive bills can make your student housing more attractive to students.
Whether or not you are offering all-inclusive bills, make sure you specify who will be responsible for paying the bills in the student tenancy agreement.
Managing a student let comes with a unique set of challenges and responsibilities.
No two student lets are the same either. The responsibilities of student landlords can vary slightly depending on the type of student accommodation being let and the type of tenancy agreement used.
It is important to understand your legal obligations as a student landlord to establish a good reputation and maintain a positive relationship with your student tenants.
