Rightmove recently undertook a survey sampling landlords and lettings agents who rent to both students and non-students. Resultantly, research revealed that 69% of landlords and letting agents prefer to let to students and 84% agree that students make good tenants.
The reasoning behind the distinctly positive image of student tenants lies with the fact that they are deemed to be straightforward by landlords and unlikely to cause any surprise.
Furthermore, student lets generally lead to better yields, as agreed by 76.5% of landlords and letting agents in the survey, and there is a guaranteed market of new students every year (53.7% ). More than this, students often have the financial support of parents or family (45.6%) and as such, rent arrears are less of an issue with payment coming promptly (25%).
What’s more, these views were shared nationwide with the exception of London where only 43%, shared a preference for student tenants. However, just 3.7% of those surveyed reported no noticeable benefit from letting to students.
Interested in letting to students? Here are 7 tips on how to attract the best student tenants:
- Insurance: Despite research suggesting that students make for the best tenants, things inevitably go wrong, so make sure you have the right insurance in place to cover all possibilities.
- Plan: Schedule specific times for group viewings as this allows potential tenants the opportunity to meet one another as well as view the property.
- Get the balance right: A healthy relationship between the landlord/agent and the tenant is vital. This requires setting the boundaries and responsibilities early on.
- Get an HMO License: Letting a property to more than two students requires an HMO license. And despite their high price of £770 per property per year, the license allows individual rooms to be let out which means that the investment in a license will soon be recouped.
- Social Media: The greater benefit of this will come once a portfolio of properties has been created by making it simple and easy to display images and post availability.
- Keep things really simple: By combining bills potential concerns for both tenants and landlords are avoided in advance – 71.2% of students believed rate inclusive bills were an essentially important factor in choosing a property.
- Advertisement: Utilising specialist websites, such as Rightmove Students offers a platform for advertising your property to the desired market, as does the accommodation office of the local university as these will often be the first places students look.