Renting to students is a high-profit opportunity but at the same time comes with words of caution. By understanding the unique nature of student rentals, you can work to make a higher income without breaking any laws.
Licensing Requirements
In some areas landlords must have an HMO licence if three or more unrelated students share the property. You could be fined if you do not follow the licensing rules set by your local council.
Property Standards
Student properties need to comply with various safety standards, such as fire safety regulations, gas and electric certificates etc. HMO properties are subject to additional standards, like minimum room sizes and communal space provisions.
Tenancy Agreements
Student-let properties last for fixed 12-month tenancies, usually commencing in July or September to be in sync with the academic year. A typical scenario is a joint tenancy agreement, where all tenants are collectively responsible for rent. On the other hand, one-off agreements are more flexible but require additional administration. For Letting Agents Bridgwater, visit https://www.sykesmoore.co.uk/lettings/letting-agent
Guarantors Are Essential
Because most students either have no credit or a thin file, and not enough income to meet higher debt-to-income ratios without additional support from parents, asking for a guarantor is generally well accepted by lenders. This offers protection if you lose your rental income.
Maintenance and Wear
Student properties incur a lot of wear and tear. Allow for ongoing maintenance and invest in hardwearing furniture and fittings suitable for high traffic areas.
Marketing Timing
Students start searching for housing in January and February so that’s when you should begin marketing your property. When it comes to finding great renters, your listing may become lost in a sea of other listings.
Getting student lettings right means you could have guaranteed long-term rental, for life.