If you live close to any university, you may want to consider renting out to students. It’s is a great option and it often brings quite a hefty return on your money, depending on the area you’re in.
Here are some things to consider when thinking about rental for student accommodation…
Student Status
Students are exempt from council tax, but they do require a certificate to prove this from the council. If you are found to be housing non-students, you may have to pay outstanding council tax, so be sure of who you’re renting to before you grant any access.
Agreements
When renting to anyone, landlords and occupants have to sign an agreement, a contract concerning their tenancy and responsibilities. In student rental, there are two ways to do this. You can either rent out rooms individually or instead, use a joint tenancy. Joint tenancy agreements are where students all sign the same documents and are all therefore responsible for paying costs. Which you choose is up to you.
Insurance
Student insurance policies are important to have as well. Always ask your insurers if your policy needs amending. If you don’t make sure your insurers are aware of your renters’ status, you may not be able to claim insurance when you need to.
Safety Checks
Safety checks should continue as with any normal accommodation. Gas and fire safety is vital, and fittings like fuse boxes, boilers and thermostats should always be in kept communal areas.
Remember these 4 important points and your rental should run smoothly. Hope this helps with your first student HMO. Hope it all goes well!
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focuses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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