Renting to Students: Tips for Landlords in College Towns

Renting to Students: Tips for Landlords in College Towns

In this guide, we’ll explore practical tips for landlords renting to students, from understanding the student rental market to managing student tenants effectively.

1. Understanding the Student Rental Market

College towns are often defined by a dynamic rental market, with student demand driving property rentals. Unlike traditional tenants, students typically seek accommodation for short-term leases, aligned with academic semesters or the school year. This means that landlords may need to plan for frequent tenant turnover and seasonal vacancy periods.

Pros of Renting to Students:

• High Demand: There is typically a consistent stream of students needing accommodation, especially at the start of the academic year.
• Potential for Higher Rents: In high-demand areas near universities, landlords may charge competitive rents, especially for properties located within walking distance of campuses.
• Multi-Let Opportunities: Renting by the room or to groups of students can maximise rental income.

Cons of Renting to Students:

• High Turnover: Frequent tenant turnover can result in increased maintenance, cleaning, and marketing costs between leases.
• Property Wear and Tear: Student tenants may not always prioritise property care, leading to more wear and tear.
• Rental Gaps: During summer months or holidays, properties may sit vacant, reducing overall rental income unless handled proactively.

2. Creating a Student-Friendly Property

To attract and retain student tenants, it’s important to ensure your property meets their needs. Students typically look for affordable, well-located, and functional housing. Here’s how you can make your rental property more appealing to them:

• Location: Properties near the university campus, public transport, or local amenities such as supermarkets and entertainment venues are highly desirable.
• Furnishings: Students often prefer fully or partly furnished properties. Basic furnishings like beds, desks, chairs, and wardrobes can make a property more attractive. Consider including white goods such as a washing machine, fridge, and microwave.
• Fast Internet: Reliable and fast internet access is essential for students, who rely on it for studying, socialising, and entertainment. A good broadband connection can set your property apart from others.
• Security Features: Students and their parents often prioritise security. Installing secure locks on doors and windows, external lighting, and security systems can provide peace of mind and make your property more desirable.
• Utilities: Offering an all-inclusive rent that covers utilities such as electricity, water, and internet can appeal to students who prefer predictable monthly costs. If offering this, ensure the rental price reflects the average utility use.

3. Setting Competitive Rent

Students are often on a tight budget, so pricing your rental competitively is key to attracting tenants. Research rental rates in your area to ensure your prices are in line with other student properties.

In college towns, properties close to the university may command higher rents due to convenience. However, make sure to strike a balance between affordability and profitability to avoid long vacancy periods. Offering flexible payment plans, such as allowing rent to be paid in instalments or aligned with student loan schedules, can also make your property more attractive.

4. Screening Student Tenants

Student tenants often lack the rental history or full-time employment records that landlords usually rely on when screening applicants. To address this, landlords renting to students may need to consider alternative measures to mitigate risks:

• Parental Guarantors: Requesting a parent or guardian to act as a guarantor is a common practice when renting to students. The guarantor agrees to cover the rent if the tenant is unable to pay, providing landlords with added security.
• References: While many students won’t have previous rental references, you can request character references from previous landlords, tutors, or employers to get a sense of their responsibility and reliability.
• Deposits: Ensure that you collect a security deposit, typically equal to one month’s rent, to cover any potential damages. Remember to protect the deposit in a government-authorised tenancy deposit scheme, as required by law.

5. Creating a Clear Tenancy Agreement

A well-structured tenancy agreement is essential when renting to students. The agreement should clearly outline the rights and responsibilities of both the tenant and the landlord. Key points to include are:

• Rental Terms: Specify the rent amount, due dates, and methods of payment. If utilities are included, detail which services are covered.
• Length of Lease: Most student tenancies are for nine or twelve months, matching the academic year. Decide whether you want to offer short-term leases during term time or seek longer tenancies.
• Maintenance Responsibilities: Clearly state who is responsible for maintaining the property, including garden upkeep and routine cleaning.
• Noise and Conduct: Students living in shared housing may hold social gatherings. Set clear guidelines on noise levels and acceptable behaviour to avoid conflicts with neighbours or property damage.

6. Regular Maintenance and Inspections

Given the higher turnover and potential for wear and tear, it’s crucial to stay on top of property maintenance when renting to students. Schedule regular inspections to ensure the property is well-maintained and any issues are addressed promptly.

Encourage students to report maintenance problems early to prevent minor issues from escalating into major repairs. Consider conducting inspections at the start and end of each term, giving tenants sufficient notice as required by law.

7. Handling Tenant Turnover

Tenant turnover is a reality when renting to students, with many moving out after a single academic year. To minimise vacancy periods, start advertising the property well before the end of the current lease—many students begin looking for next year’s accommodation as early as January or February.

Offer incentives such as discounted rent or referral bonuses to current tenants who renew their leases or recommend friends. Conduct thorough end-of-tenancy checks to ensure the property is in good condition before the next tenants move in.

8. Dealing with Summer Vacancies

One challenge of renting to students is managing potential vacancies during the summer months when many students return home. To address this, you might:

• Offer Short-Term Leases: Market the property to students attending summer courses or international students who need housing for shorter periods.
• Rent to Non-Students: During the summer, consider offering short-term lets to professionals, tourists, or academic staff visiting for conferences.
• Charge a Retainer Fee: Some landlords charge a reduced rent or retainer fee over the summer months to hold the property for students returning in September.

Renting to students in college towns can be highly profitable if approached correctly. By understanding the needs of student tenants, offering competitive rent, and maintaining a well-furnished, secure property, landlords can enjoy a steady rental income. However, it’s also important to plan for higher tenant turnover, regular maintenance, and potential vacancies.

With careful management and clear communication, landlords can successfully navigate the student rental market and build positive relationships with their tenants, ensuring a smooth and productive rental experience for both parties.