Jul 20, 2020

Student Landlords – Prepare for a new Academic Year

A new university term is just around the corner. In two short months, millions of students might be leaving the bosom of their families and heading to university. If you’re a student landlord, you are probably gearing up to accept a new clutch of eager-beaver young people who are keen to get started on their studies.

Experienced landlords know the drill, but if you are a student landlord newbie – or you’re thinking about investing in student housing – read on.

Letting to students has a lot of advantages, but it can be hard work for inexperienced landlords. In this article, we’re going to focus on some of the top tips for letting to students.

Reducing Property Damage in Student Lets

While the majority of student tenants are respectful of the properties they live in, accidents do happen. Some tenants living away from home for the first time may not be aware of how to thoroughly care for a property. Students usually like to socialise and this can also increase the risk of property damage as friends and relative strangers are sometimes invited into the property and they may not show it the same respect as the tenant. Student landlords should put measures in place to protect their properties.

Vulnerable areas of a student property

Furniture

Most student houses are offered furnished, which means landlords typically provide bedroom furniture, a sofa, white goods, a vacuum cleaner, and other essentials. Nothing lasts forever, so you can expect any furniture you provide to fall apart after a few years.

Older, more solid furniture is a better investment than cheap stuff from Ikea. Flatpack furniture looks modern, but it rarely lasts for more than a couple of years. Look for second-hand pieces made from solid wood rather than MDF and glue.
Protect mattresses with covers, ditto with pillows this helps to keep them clean for longer.
Buy extended warranties for appliances, so you can have them repaired if they break.

Floors

Carpets are difficult to clean and they show wear over time. Instead of laying carpet in a student property lay hard wearing flooring like laminate and tiles.

If you are really keen to lay carpets look for hard wearing short pile carpets that are dark in colour and can withstand wear. Scotchguarded carpets can help to resist stains and are easier to clean.

Windows and doors

Whilst you might assume windows and doors are safe you should take measures to protect tenants and your property by making sure they are secure.

Student tenants are often targeted by burglars as the properties aren’t always as secure against strangers and students are likely to have electronic devices.

Cheap hollow interior doors look nice but are not robust. Consider fitting solid pine doors instead. These can be sanded down and repainted. They are also more resistant to being kicked in.
UPVC exterior doors have 5-point locking systems, but the cheaper ones are not terribly robust. A good-quality composite door will last a lot longer than a bargain-basement one, and will be more secure, too.

The garden

If the property has a garden, consider paving it so that it’s low maintenance – unless you are willing to pay a gardener to do the work of keeping lawns and borders in check.

Protecting a student property

Always have a thorough check-in procedure. Itemise the condition of everything in the property, including fixtures and fittings. Back-up your inventory with photos and video. Ask each student to check the report and sign it to show they agree with it as you would do with any other tenancy.

When your students first move in have a conversation about property damage. Make tenants aware that they need to report any damage that occurs in the property. If you feel it is necessary you can explain to tenants that accidents happen and wear and tear is expected but that they have a responsibility to ensure wilful property damage doesn’t occur.

Remind tenants the property must be kept secure at all times. Doors and windows should not be left open when the property is unoccupied and for their own safety they should be diligent about who they let into the property.

Finally, protect your investment by taking out landlord insurance. It might be wise to extend the policy to include accidental damage. Hopefully you won’t need it, but it’s good to know you are covered if you need it.

Student Rent Arrears

Missed rent payments can sometimes be an issue for student tenants. While students are usually eligible for maintenance loans, the funding is not always enough to cover the rental payment. Since many students don’t have time to supplement their income with a job, it can cause issues.

Credit checks are typically used to vet incoming tenants and flag anyone with poor credit, debt problems etc. Most students have no credit history, so it’s difficult to use these checks to determine their suitability as you would any other tenant.

Most landlords will ask each student tenant to provide a guarantor. The guarantor – usually a parent – is legally responsible if the student doesn’t pay their rent. This person can then be pursued for unpaid rent if this turns out to be an issue.

If one of your student tenants is late with the rent, contact them immediately to find out what the problem is. In the event the issue is temporary, for example, because a student loan payment is late, be lenient. It is always better to work with your tenants to resolve late rent payments. If the student is unable to pay and if it is not possible to put a repayment plan in place, approach the guarantor to organise a payment plan.

Anti-social Behaviour Among Students

Universities and neighbours take a very dim view of antisocial behaviour. If incidents take place in or around your properties, you can expect to hear about it. You may even be taken to court by your local housing department if you cannot or do not control the problem.

Examples of antisocial behaviour

Playing loud music late at night or early in the morning
Discarding rubbish in the garden or on the street outside the property
Playing musical instruments – i.e. drums – at inappropriate times
Misusing fireworks
Loitering

This is not an exhaustive list;

It’s difficult to prevent all incidents of antisocial behaviour, but there are measures you can put in place to prevent such problems from escalating.

Do not buy a property in a quiet residential neighbourhood and then let it to students. Most students prefer living close to campus, so look for properties already set up for student lets or in popular student areas.
Include an anti-social behaviour clause in your tenancy agreement. Make it clear that antisocial behaviour will not be tolerated.
If you receive a complaint from a neighbour or another tenant living in the property, deal with it immediately. Talk to the house occupants and if necessary remind them this behaviour isn’t tolerated and explain to them what further action will be taken should the problem persist.

Vermin in Student Properties

Dealing with vermin is time-consuming and potentially expensive if the problem has been allowed to get out of hand. If vermin are becoming a problem in your student property you will need to discuss this with your tenants.

Be very clear about how rubbish must be dealt with. Provide general waste and recycling bins.
Notify your students of the collection schedule and remind them to sort waste into appropriate bins.
If you have any doubts about cleanliness in your student properties, it’s worth paying a cleaner to go in once a week and give the kitchen and other communal areas a thorough once-over. That way, problems will not escalate.
If vermin infestations are due to structural defects get these rectified immediately.

Student Tenants Might Need More Guidance

Part of the student landlord job description may involve a bit of hand-holding. Remember this may be the first time tenants have been away from home and the first time they’ve been in charge of caring for a property. Tenants may contact you with queries that a standard tenant wouldn’t, so it’s good to be prepared to help tenants wherever they need it.

Prepare a property manual that details exactly how each appliance in the property works – explain steps simply, include useful information such as how to turn the water off in the event of a leak.
Make sure to charge for replacement keys as a deterrent or look into proximity and smart locks which students may be able to operate from their phones.
Be nice. Most students are lovely and eager to please, be patient with their requests.

Ending a Student Tenancy Early

There will be times when a student needs to quit their accommodation early. Whatever the reason, at some point, one of your tenants will choose to end their tenancy early.

It’s common for student landlords to use joint tenancy agreements. If one tenant leaves early, it is then up to the remaining tenants to cover the shortfall in rent and find a replacement tenant. When this situation arises, you have the option to prevent the tenant from ending their contract early if they can’t find a replacement or you deem the candidate unsuitable. However, it’s usually better to try and find a mutually agreeable compromise.

If the student is on an individual contract, they can only end the tenancy if you agree or there is a break clause written into the tenancy agreement. Otherwise, they are obliged to continue paying the rent until the end of the contract. Again, this is something you should negotiate with the tenant if they are leaving. It’s worth being flexible where possible.

Student Property Voids

Property voids should be avoided at all costs since an empty property is costing you money. It isn’t always possible to prevent students from leaving early or cancelling at the last minute – life happens, and sometimes students have to alter their plans unexpectedly. However, voids can be minimised if you run your student properties in a professional manner and treat your tenants with respect.

Try and go the extra mile. Be nice and accommodating. If you have a good relationship with your tenants they are more likely to recommend you to their friends. Remember, positive word of mouth is a powerful marketing tool!

Finding New Student Tenants

Try and plan well in advance to avoid being stuck with empty rooms at the start of the academic year. Begin marketing your properties long before your current students move out.

Ask existing student tenants to recommend your properties to other students (it helps if you have looked after them during the tenancy!).
Register with the university’s accommodation department.
Advertise your property on online portals.
Use a letting agent that specialises in student accommodation.
Promote your properties on social media.
Put cards in the windows of local convenience stores where students buy milk/snacks/booze.
Be available for viewings.

Be Prepared for the New Term

Bear in mind that risk management is all part of running a business. Carry out a risk assessment to determine where problems might occur and make plans to deal with issues as and when they arise. For example, if you are concerned about property damage, make sure you have adequate landlord insurance cover.

Do you let to students? Tell us more. You can reach out on Facebook or Twitter. We’d love to hear from you!