Pros and cons of letting to student tenants?

Landlords – what are the pros and cons of letting to student tenants?

With over 2.2 million students currently in the UK – and UCAS reporting an increase in applications every year – it stands to reason that there are always plenty of students looking for rental properties.

Letting your property to students could prove to be lucrative and rewardin. However, it isn’t something to be taken lightly. As a landlord, there are a few things you should consider before heading down the student accommodation route.

As a local letting agent covering Enfield and Newham, here at Angels Sales & Lettings, we offer some advice on the pros and cons of letting your rental property to students.

The pros

Every year, one of the biggest rental demographics tends to be the student market. With this ever-growing audience, it’s rare you will have a problem finding people to fill your property, especially if it’s located in close proximity to a college or university.

And, with such a high demand for rental accommodation at the beginning of each academic year, your property should always be occupied and bringing money in.

What’s more, monthly income from students is often secure because they either have a scholarship from their school that can help them to pay rent or they have parents that will vouch for them – known as a guarantor.

Meanwhile, some students aren’t particularly fussy about having state-of-the-art accommodation and you can also consider charging rent per room and therefore securing much higher returns than if you were letting property to just one household. This can add up to a substantial increase in rent over the years.

Lastly, you will not be tied down to student tenants for too long, as they will always eventually move on after the term has ended.

The cons

One of the downsides of renting out your property to students is the inevitable void periods. Generally speaking, students will return home over the summer holidays. During this extended period, it may be hard to occupy your property.

Of course, you can mitigate this by charging a holding fee for students who wish to live in your property for a second or third year – but there are no guarantees they will agree to this. Plus, students may change homes on a number of occasions during their time in university, so long-term stability is not usually associated with this demographic.

What’s more, it may be quite difficult to acquire references and credit checks from student tenants, which could leave you with less protection if any issues arise or if damage is caused in the property. In these instances, it’s worth asking for a guarantor for extra reassurance and peace of mind.

Due to the nature of student living, there’s a chance you may have to deal with noise complaints from neighbours or the local council. You might also have to maintain your property more than if you were letting to professional tenants, as some students aren’t the most house-proud.

What options are available to you?

Luckily, the borough of Newham is home to popular Middlesex University, while Enfield – which boasts excellent transport links – is within close range to University of London, Imperial College and a range of other establishments in central London. With such a wide pool of potential student tenants in both areas, it’s worth considering the possibility of the student lettings market.

Before making your decision, though, keep in mind that a property that is let to three or more tenants who are not related could be classed as a house in multiple occupation (HMO), in which case it will need to be licensed by your local authority.

For more advice on letting out your rental property in Enfield and Newham, please get in touch with us today on 0800 043 6778.

To find out how much you could be generating in rent each month, you can also request a free and instant online valuation.

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