We recently teamed up with our friends at Accommodation for Students to investigate whether UK landlords want students in their properties, and it turns out they do.
Published today, the report reveals that 69% of landlords and letting agents feel it is better to let to students than non-students. This was consistent across all regions in the UK with the exception of London, where just 43% preferred student tenants.
See the key findings from the report here (Click the infographic to expand):
84% of all respondents also agreed that students make good tenants. This was put down to their associated benefits: better rental yields (76.5%), annual market for new students (53.7%), rent is guaranteed by a parent/guardian (45.6%) and rent is paid promptly (25%). Only 3.7% of those surveyed reported experiencing no benefit associated with letting to students.
Despite these benefits, some challenges were also highlighted when letting to students. These included; the cost of maintaining a HMO licence (57.4%); the fact students are more time consuming than letting to non-students (50.7%); the turnover of tenancies (46.3%); and damage caused to the property (41.2%). One in ten reported experiencing no issues associated with letting to student tenants.
Those with smaller portfolios more commonly reported issues relating to costs, such as the cost of maintaining a HMO. Those who manage larger portfolios were more likely to report issues relating to property damage and students being more time consuming as tenants than non-students.
With less than one month until A Level results day, which sparks an annual peak in the search for accommodation, Richard Price head of Business Development for Glide offers guidance for landlords and letting agents who are thinking of letting their property to students for the first time:
“There is a lot of confidence in the student rental market. Gone are the days where students digs equals sub standard. The truth is, students make great tenants – they’re in constant supply and have guaranteed means to pay the rent. With annual turnovers and a desire to rent to this market, landlords and letting agents should make their properties as attractive and visible to students during the clearing period,” Richard Price head of Business Development for Glide.
Landlords, do you agree with our findings? Let us know by connecting with us on Facebook or Twitter or to talk about ways to encourage more students to rent your properties, get in touch with us at glide@glide.uk.com or give us a call on 0333 666 5555.