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As students around the country get to grips with their A-Level results, those who've already completed their first year in university accommodation will be making the big step into independent housing. Letting to students can generate substantial returns for landlords and the yields are often much higher than those achieved in the standard buy-to-let property market. But renting to students can be very different from the average letting process.
Lettings website, Lettingagent.com, offers the following tips for those considering entering the student property market.
1- Think very carefully about the area: Local knowledge is invaluable as it's pointless to invest in an area where students wouldn't want to live or wouldn't be welcome.
2- Landlords should also be aware that towns and cities may have more than one university, and each may have various campuses around which there are student areas. Be wary of up-and-coming areas as it's useless to consider buying somewhere you can get more for your money if you aren't going to be able to attract the student tenants to fill it.
3- Choose a reliable letting agency to manage your property: Not all university towns are equally profitable. Landlords should choose letting agents that are registered with an official organisation such as the Association of Residential Letting Agents (ARLA).
4- Register with the university accommodation service: Being on the university database is an easy way to advertise a property directly to students.
5- Be aware of health and safety regulations: Landlords should pay particular attention to the HMO Licensing and Housing Act legislation to ensure that they comply with the rulings and any recent amendments.
6- Insert a clause in the lease to allow for potential damage: This allows for circumstances where students fail to follow the procedures required, for example where damages are caused.
Students should be given a clear inventory and a flat inspection carried out the first day of tenancy so that breakages or damages can be noted at the end of the term. A list of emergency numbers and useful contacts and dates (e.g. bin-day) can also prove very helpful.
7- If possible, ask for a reference from a previous landlord
8- Don't fall into the trap of false economies: Though no one would advise buying expensive carpets, curtains or sofas, the furniture provided for students does need to be hardy and able to withstand a bit of wear and tear.
9- Always make sure you have buildings insurance: This rule applies equally to the student market, as it would to the buy-to-let arena generally.
10- Ensure that council tax forms are filled out and sent off: Properties which are occupied only by students are exempt from council tax so tenants should fill out the relevant forms and return them as soon as possible to avoid problems later on.
29 August 2007 © Moneyextra.com
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