POSTED 06 July 2018 Lettings

Is it Worth Letting Your Property to Students?

In recent years, more and more landlords have opted to let their properties to university students and are seeing the benefits.

If you are pondering on whether to buy a student property or rent your existing property to students, it is important to weigh up the pros and cons of such investment to make sure it is the right choice for you!

students renting

Advantages

House condition

One of the most appealing aspects of letting student properties is the lower requirements with regards to the condition of the house. Students are not exactly in the market for a state-of-the-art design!

For many it will be their very first rental since moving out of their parents home, and being with their friends and having their own space is enough of an attraction!


Living Space

A majority of students are just looking for somewhere to sleep and eat with their available budgets, thus, turning living spaces into bedrooms can bring higher returns. Another attractive prospect is the ability to charge rent per room, which can be an extremely cost efficient method for landlords. 

Constant demand

It can be easier to find tenants especially if located near the campus or in popular student locations within the city. Thousands of new potential tenants moving to their chosen university city every year is a huge positive.

Student home owners can make connections with the universities by becoming a recommended landlord, meaning that their properties are advertised at the university accommodation fairs and the uni will send students looking for properties in the direction of the accredited landlords. 


No long term ties

Students quickly move on from property to property, they’ll only want the contract for a year. Although, important to bare in mind, if they’ve been good tenants negotiating a second year with them becomes a possibility.

Contrary to this if they’ve been nightmare tenants, causing the neighbours sleepless nights for example, they would have only signed short term contracts removing the burden of being stuck with difficult long term tenancies.

Disadvantages

Competitors

Demand for student housing is falling with the rise of purpose built student accommodation across the UK. There is now idyllic accommodation available offering the student experience nationwide, owned by private landlords or companies that are not attached to the university, costing the student only a little more than university halls.

Not permanent residence 

Another drawback is that many students go home for the summer months, so there is potentially lost income between June and August.

There are ways to overcome this, by offering 12 month contracts only or by renting to students taking summer courses. Important to note the latter option being the more time consuming one!


Student lifestyle 

It can become problematic when the tenants are the type of students who enjoy loud late nights! Complaints from neighbours, the university and even the council in some cases can cause unneeded problems. 

Maintenance costs

Students aren’t exactly known for being the best when it comes to caring for the properties they occupy! Thus leading to higher costs in maintenance and repairs than if renting to working professionals. Although this can be balanced out by spending less on lower quality furniture and decoration.  

On the whole, students can be reliable and low maintenance tenants, not demanding much attention (as long as they’re not too wild)! There is no doubt that renting to students can be a financially rewarding venture.