Renting to Students – Things Every Student Landlord Should Consider

 

Renting to Students

Becoming a landlord and renting to students, things you should consider first

 

If your considering becoming a landlord and renting to students, in this article, we go over some important topics which every potential student landlord should consider.

Why you should be renting to students?

With over 2 million students studying throughout the UK and Ireland every year, student rentals can be a lucrative option for many landlords. We’ve previously gone over the pros and pitfalls of renting to students, so check that article out.

To quickly summarise:

  • You can maximise properties earning potential by renting out multiple rooms on individual occupancy contracts
  • The student market is fairly predictable with an influx of new and returning students returning year on year
  • Students, in general, tend to be less demanding in terms of what they expect and you don’t need to have the latest interior designs or furnishing

 

Which property types are best suited when renting to students?

Property location is one of the most important things to consider when choosing a student property. Ideally, you want a property with good transport links which provides access to universities, shops, bars and entertainment spots.

In regards to the type of property, ideally, you’d want to look at properties with 3+ bedrooms. Some students look to rent in large groups of up to 12 people but the majority tend to be in groups of 3-5. It’s also quite common to convert a dining room or attic/basement room into an addition student room which you can rent.

Having some form of communal area is fairly important, so it’s best to have at least one room where students can gather and congregate together. Other things which could be considered as ‘nice to have’s’ but not necessary a necessity, would be, parking space, a garden and multiple toilets/bathrooms.

Should landlords consider using Homes of Multiple Occupancy Contracts (HMO’s)

Compared to renting out the whole property on an individual tenancy, HMO’s can ensure less hassle for both the landlords and students.

It’s fairly common that some students will wish to cancel their tenancy, which can be for a multitude of reasons. HMO’s are useful as they place the responsibility of both rent payments and deposit onto each individual student. This means, if in the worst-case scenario, any individual student does wish to move, the responsibility to meet any contractual agreements lay with that particular student.

Another benefit of HMO’s, is that it also makes it easier to sublet rooms out over the summer months and make even more money renting to students.

You can find further information about HMO’s on the UK governments website.

When renting to students how should I furnish the student property?

Furnishing a student property when renting to students will be slightly different from furnishing regular accommodation. Students will expect a minimum range of furnishings in each of their individual rooms as well as the whole property itself. One benefit when it comes to furnishings is that you don’t need to spend too much money and can quite easy pack out your property with modern and stylish cheap furniture (think Ikea!).

Individual Student Rooms should have:

  • Desk
  • Chair
  • Wardrobe
  • Cupboards
  • Bed
  • Room Lock

The Student Home Or Student Apartment Should have:

  • Washing Machine / Dryer
  • Oven Cooker
  • Microwave
  • Fridge Freezer
  • Sofa
  • Hoover, Mop, Dustpan brush and basic cleaning items
  • Tools for any expected basic home or garden maintenance
  • Bins

 

What we have listed here is really just the minimum requirement in furnishings and equipment and you may need more than what we’ve listed, depending on the type of student your marketing too. We would advise doing some further research about renting to students and the various segments that the student market can be broken down into.

A good place to start would be to read the Student Accommodation Survey.

Knight Frank in collaboration with UCAS have produced the report. It provides insight into the opinions of over 60,000 students and how their university accommodation choices and preferences which can help landlords who rent to students or are considering renting to students, make more informed decision and plan more effectively when choosing student housing or property and deciding how to furnish them.

How can I be a good landlord when renting to students?

Renting to students is slightly different compared to renting to families or working individuals.

It’s important to realise, that for many students, this will be their first experience living independently. This can often result in students misunderstanding their own responsibilities as a tenant.

To help students better understand their own responsibilities, it can be a good idea to provide a welcome pack. These can be used to set out clear rules and each of the responsibilities the student has as a tenant.

The pack should contain:

  • Outlining of basic rules in easy to understand the language
  • Useful contact numbers
  • Bin collection dates
  • Appliance instructions
  • Home/garden maintenance expectations

Another way to be a good landlord is to be reliable and available when issues do arise, it will help greatly in building a good relationship with your student tenants. It’s important to remember that many students will refer other students to landlords that they have had good experiences with and if you have any social media or web presence, getting good reviews can help boost your reputation as a good landlord.

Being an unreliable landlord can have the opposite effect and with the rise of social media word can quickly spread. Receiving bad reviews or getting a bad reputation can have a negative impact on your student rental income and ability to rent to future students.

What is a Rental Exchange Scheme?

The Rental Exchange Scheme provided by creditladder.com allows student tenants to strengthen their own personal credit score and history by simply paying  their rent.

It’s also a great benefit to landlords, as it encourages students to ensure that their rent is paid on time.

Where can I advertise my student accommodation?

You can advertise your student properties here at DiggzHunter. All landlords get one free advert and it’s completely free for students to use. Check out further details about advertising with us here and get your free ad posted up in five simple steps.

 

Renting for Students Guide – The Pro’s and Pitfalls

renting for students

Pro’s and Con’s when renting for students

 

With over 2 million students studying throughout the UK and Ireland, student rentals can be a lucrative option for many landlords. In this part of our of student landlord guide, we take you through the pros and pitfalls that student landlords typically face when renting for students

Student Rental Guides:

Renting To Students – Common Questions and Things to Consider

 

The Pros of Renting For Students

Higher Yields

High Yeilds

There’s a possibility to receive a higher return from your property when renting for students compared to renting to normal tenants. As a student landlord, you can rent out rooms individually and convert dining rooms or attic rooms into student bedrooms. If a property is occupied by 3 or more tenants, then this is referred to as a HMO (Houses in Multiple Occupations) and if you rent out individual rooms to 5 or more students, then a licence is required.

Although the rent on each room individually may appear low, returns from multiple students in a single property can be very lucrative.

Read more about HMO’s and your legal responsibilities

Less Demanding Tenants

Students, in general, tend to be less demanding in terms of what they expect and you don’t need to have the latest interior designs or furnishings. There’s a current trend with certain segments of the student market to go for high-end accommodation but these are still the minority. The majority of students are just looking for a safe, comfortable and affordable place to live.

Growing Market

renting for students

Over the last few years, student numbers have been growing year on year creating a higher demand for student accommodation. Although COVID has created what could be considered a blip during 2020/21, demand is likely to pick back up meaning it’s a fairly safe investment providing you choose the right student accommodation in the correct location.

The student accommodation sector remains strong and is considerably less volatile than other areas of the property market. With increasing student numbers, the demand for student lettings is higher than ever. The standard need for a guarantor, often a parent, is another reason why student lettings remain secure. This predictable market is a great opportunity for potential student landlords to secure lucrative rental yields and a regular healthy income.

Predictability

With student tenancies typically lasting 9-12 months and a new intake of students arriving each year the market is fairly predictable and can provide student landlords with some stability and the ability to plan ahead.

The Pitfalls of Renting For Students

 

Late Rental Payments

Students finances often come in the form of loans or grants which are sometimes received later than anticipated. As a student landlord, it’s best to provide some flexibility and anticipate for late payments without forcing students to pay additional charges.

One way to deter students who purposefully miss payments is by having guarantors in place.

Property Damage and Maintenance

For many students, this will be their first experience living independently. This often results in a higher workload for student landlords as students often misunderstand their own responsibilities as a tenant which can also increase the likelihood of damage occurring.

Having a security deposit in place is a good idea and also ensuring you have guarantors on the tenancy agreement.

To help the student understand their own responsibilities, it can be a good idea to provide a welcome pack. These can be used to set out clear rules and the responsibilities the student has as a tenant. Also proving useful contact numbers, bin collection dates, appliance instructions etc and anything else to aid in settling in can help in reducing workload.

Noise Complaints

renting for studentsIt’s generally knowing that students like to have parties and can be loud. Although this is all part of the student experience, it can sometimes result in complaints from neighbours.

Ensure you have policies in the tenancy agreement which clearly outline specific times it’s expected any noise will be kept to a minimum and that respect is to be given to neighbours.

If you receive complaints from neighbours, give them your backing to speak with the students directly. You can also assure them that it’s not something you as the landlord will tolerate.

Quiet And Empty Periods

University courses typically run for 9 months of the year with breaks occurring at Christmas and during the summer months. As a student landlord, it’s best to make allowances for theses empty periods and ensure your insurance covers these times.

The summer months can be a great time to carry out any maintenance or property upgrades before the next intake of students.

High Turnover

Typically, students stay in halls of residence for their first year of university. They then move into private student lettings for the remainder of their course. During this period many students drop out of university for varying reasons, so it’s something which needs to be taken into account.

Competition

In certain towns and cities, student accommodation is becoming a saturated market. In some areas such as Manchester or Liverpool, many private student properties are lying dormant. With the arrival of PBSA’s (Purpose-Built Student Accommodation (PBSA) competition to find student rentals has become fierce.

The good news is PBSA’s don’t seem to be as popular as initially predicted and have become un-affordable for many students who are now opting for cheaper private student lettings.

A few things which can help your student property stand out are:

  • Make it Affordable
  • Ensure your property is comfortable to live in and secure
  • Buy in locations with direct links to universities and easy access to supermarkets, cafes and bars

 

Last but not least, if you already own a student property or have a student room which your looking to rent out and want to reach a wide pool of students, you can place a free advert with us in 5 easy steps

If you have multiple student properties you wish to rent out then check out our flexible packages.

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Advertise a Student Room or Property – Tips to Stand Out

 

 

Advertise a Student Spare Room or Property – Tips to Stand Out

student spare room

The correct way to advertise a student spare room or property

A quick internet search shows competition to rent a student spare room or student property is fairly fierce. In this post, we’ve put together some useful tips which if used, will help your spare student room advert or student property stand out!

Create a Catchy Advert Title

Advert titles should be short and descriptive, which will quickly allow students to get a good feel about what’s being offered.  A common mistake we see from many landlords advertising a student spare room or property is advert titles which are too short and undescriptive, or advert titles that contain far too much detail.

Take a look at the examples below to see an illustration of these common mistakes:

Bad Title Examples

  • Too Short and Undescriptive: Student Spare Room Available
  • Too Long, and To Much Detail: Student Spare Room available for rent to students in a five-bedroom home and lovely housemate located in Manchester with En-suite and all Bills Included

 

Remember you don’t normally need to include too many descriptive details in the title. Some details will be covered elsewhere in the advert, others like the location will be filtered out when in search results.

Good Title Example 

  • Readable Length and Descriptive: Student Spare Room in Modern Home with En-suite, Bills included

 

This advert title isn’t too long but highlights the main key features students will likely be interested in.

Use Quality Images

Student Spare Room

The old saying.. ‘A picture speaks a thousand words’ has some truth to it. It should come as no surprise that ads with pictures have better conversion rates. Another important point to consider is using pictures which show the room or property in it’s best possible light.

Images should be bright and clear and the room should be tidy and clutter-free. If you have a student home with multiple rooms, use a cosy or modern-looking room as the main image. To crop or edit your images use a tool like photoresizer

Focus On Selling Points

When adding advert details, concentrate on the selling points, this could be plasma TV’s in each room, inclusive bills, a great location etc. Each room or property will have it’s own unique selling points and it’s important to point these out.

Provide As Much Info As Possible

Student Spare Room

Where possible, provide as much info as you can in your advert. Most student accommodation platforms, like DiggzHunter will prompt you with fields which cover various information points students are interested in.

When creating your advert, not all fields will be mandatory but filling in as many as possible will be helpful to students and adverts that do so are likely to fill more quickly.

Keep Descriptions Brief and Precise

Having taken onboard each of the above points, you want to keep your overall description as brief and precise as possible, too wordy and people will move on, too short and they may just ignore your ad. Ad descriptions are a great chance to provide info on those unique selling points and any other points which the mandatory fields haven’t covered.

Also important is correct grammar and spelling, a useful tool is something like Grammarly.

Keep Your Advert Updated

Student Spare Room

It’s important to update the state of your room or property, this has two benefits:

  • You won’t be contacted by students about a property which is already rented
  • Students won’t be put off when they discover you haven’t bothered to update your listings

We understand that leaving adverts running can be beneficial in terms of visibility. Here at Diggzhunter, we provide an option which allows you to mark your advert as rented. This provides the benefit of visibility but also lets students know that the room or property is no longer available.

Where to Advertise a Student Spare Room?

That pretty much sums everything up. If you apply each of these steps then you’ll be one step closer to getting your advert noticed and rented out.

If you have a spare student room or a student property you’re looking to rent out and would like to reach a wide pool of students, you can do so here at DiggzHunter for Free. Simply sign up and create your free listing. and get your student room or student home noticed.

 

 

 

 

 

 

 

 

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