According to a YouGov poll, 40% of landlords wouldn’t rent their property to students, presumably due to the fear that the stereotypical student party lifestyle would result in damage and the hassle of frequent repairs.
But actually if you make wise decisions when recruiting your tenants, the student market can be a profitable and attractive source of HMO renters.
Here are some things to consider when creating a student house for let –
- Bear in mind that most students will be looking for accommodation for their next academic year around this time. That means that you need to market your HMO to the nearest colleges and universities to your investment property. Social media platforms such as Facebook, Twitter and Instagram are your best bet here, as well as word of mouth.
- Make sure you provide the things that students will see as necessity – a strong internet connection, security and communal facilities.
- Having a furnished house of multiple occupation is a necessity for students as many won’t own their own furnishings. The good news is that second-hand or flat-packed furniture will be fine for the purpose. If you advertise your HMO as “fully furnished” then you will need to offer a washing machine, fridge freezer, cooker, carpets, bins, vacuum cleaner, sofa, armchairs and also a bed, desk and wardrobe in each bedroom.
- You might well want to make some additions to the tenancy agreement, with clauses addressing possible noise levels. It’s also worth considering including a “mutual break clause” so that either you or the tenant can end the agreement after 6 months with a notice period of 2 months.
- It’s worth noting that renting to students does open your property up to a wider pool of would-be tenants and student properties tend to offer high rental yields.
- On the other side, student letting can mean an empty property during the summer holidays, although some students may stay at the house if they have a seasonal job. This challenge can be overcome by short-term lets or Airbnb-style renting.
Whether you’re new to the world of property letting and HMO or you have been on the journey for a while now, letting to students is a prospect to consider. We hope that this blog has been of use to you and gives you some things to ponder if you’re thinking about student letting.
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 focusses 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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