Requirements to be a student landlord

Published:
July 30, 2023
Last updated:
March 11, 2024
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Introduction

There are many valid reasons to start a student rental company, but in order to succeed, it is crucial that you pay particular attention to the factors that will be listed in this article.

A few seasoned student landlords with whom we spoke shared some insightful advice with us. Continue reading to learn more about the good and bad habits a student landlord should have.

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The Benefits of Being a Student Landlord

We would be negligent if we neglected to mention the advantages of letting pupils. Student rentals have been able to perform better than many other private rental markets. Student landlords earn exceptional returns on their investment due to the increasing demand for student accommodation.

Property hotspots for student landlords include Huddersfield, Plymouth, Bristol, Liverpool, Leeds, and Newcastle. Even though property prices are frequently below average, demand is high. High rental yields are made possible by these ideal circumstances.

Since most students pay for an entire year, empty periods are also minimal in student housing. Furthermore, there is hardly ever a danger of accruing expensive rent arrears because parents frequently serve as guarantors.

Naturally, things are not always easy. Allocating money for routine maintenance and cleaning expenses is needed because student homes are subject to greater wear and tear than most. There are up-front fees as well as continuing expenses because equipped student residences are also rented out. Student rentals are, nevertheless, a really good idea when managed properly.

Finding the Right Property to let to Students

You must have the ideal property to be a fruitful student landlord (s). Typically, students gather in particular locations that are adjacent to campuses and conveniently close to stores, nightlife, and other attractions.

Finding the ideal house requires patience. You must time your investment perfectly since the student market is cyclical. Give yourself adequate time to perform modifications after the sale is finished. When most students are seeking for housing, your home should ideally be ready for occupants. Students will be seeking for housing in the months before term time, which typically begins in September. However, it is customary for students to begin looking for a home in November for the following September since many of them want to secure a home before their examinations begin. If you make a mistake, your property can end up being unoccupied for up to a year.

HMOs can help you increase your rental income. This enables you to rent out the home for three to five students or more at once. They share kitchens, toilets, and common areas but have separate bedrooms. If you choose the HMO method, find out if an HMO licence is needed. HMO licencing is currently mandated by several authorities.

The profits for a conventional family home can be increased by turning second reception rooms into bedrooms. A three-bedroom house with a separate dining room becomes a four-bedroom student HMO as a result.

Discover what kinds of houses are offered in your chosen locations by researching the neighbourhood market. Older homes with two or more floors provide more room, but they also require more upkeep and may require a complete makeover. This should be included in your spending plan.

Ask local letting agents what kinds of properties students are interested in. This should provide you with some insightful information before you begin scheduling viewings.

Legal Compliance for Student Landlords

The safety of the rental unit for the renters is the landlord's duty. Electricity needs to be secure, gas equipment must be secure, and Gas Safe qualified engineers must perform yearly safety inspections on gas burners and boilers. Your student tenants will want a copy of the gas safety certificate when they move in.

Additionally, if your home has any solid fuel appliances or wood burners, you must install smoke alarms on every floor as well as CO alarms.

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Preparing a House for Modern Students

Students today want a little bit more for their money. Before your renters come in, you must establish broadband at the very least.

Avoid overspending on furniture. Money was wasted on it. Workable cheap Ikea furniture is available. Expect to change mattresses rather frequently and install mattress protectors if you don't want to replace them annually.

Install a large refrigerator or freezer that can hold all the renters' personal food items. For bigger HMOs, having two refrigerator freezers might be preferable.

More selective students are those with more finances. They are prepared to spend more for luxurious flats with all the bells and whistles. Be prepared to set up your property appropriately if you wish to draw these students.

Finding New Student Tenants

New student tenants can be found in a variety of ways. As students tend to transfer to the following batch over time, word-of-mouth is probably your greatest bet. Speak to the student housing officer at the nearby college or university initially. Inform them that you have a rental property available so they may include it in their database.

Join a letting agency to promote your homes. A letting agency will assist decrease administrative work if you don't have the time to publicise several student housing options. Landlords may now market their properties on a wide variety of websites. Four of the top free real estate websites are Gumtree, OpenRent, SpareRoom, and TheHouseShop. If you work with an online letting agent like Upad or IATA, you may also give Zoopla and Rightmove a try.

Social networking is useful as well. Post information on social media and request recommendations. This allows you to have some control over possible tenants. Regardless of referrals, always remember to properly examine your references.

Landlords may now market their properties on a wide variety of websites. Four of the top free real estate websites are Gumtree, OpenRent, SpareRoom, and TheHouseShop. If you work with an online letting agent like Upad or IATA, you may also give Zoopla and Rightmove a try.

Social networking is useful as well. Post information on social media and request recommendations. This allows you to have some control over possible tenants. Regardless of referrals, always remember to properly examine your references.

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