Renting to students: what property managers need to know

Letting to students can be an excellent option for property managers operating in university towns and cities. The student market provides consistent demand, resulting in a reliable source of rental income that could be very profitable for you or your business. However, of course, there are certain considerations you must take into account when renting to them.

Why should I let to students?

There are lots of benefits of letting to student tenants:

• Consistent demand. As students will always need somewhere to live, demand in student areas is high and there can be a lot of competition for properties. This can make it easier to fill your beds.
• Despite the academic year being shorter, students are usually happy to commit to renting HMOs for a 12 month period so you don’t need to worry about continually sourcing replacement tenants. 
• Students are less concerned with aesthetics. As students are not looking for a permanent home, they tend to worry less about things like outdated decor or furniture. 

What properties are suitable for students?

All kinds of properties can be suitable for students, from studio flats to larger properties. Typically students like to live with friends, meaning that houses in multiple occupation (HMOs) are typically in high demand amongst the student market. Properties with 3-6 beds tend to be the most popular, but you will also find smaller and larger groups looking. 

When considering letting to students, think about your property’s proximity to university or if there are convenient transport links nearby. This will help make your property more attractive to students.

What furnishing should I provide?

Students will typically expect a furnished property. Student accommodation is temporary accommodation so it is not cost effective for students to have to furnish thesmelves. 

We break down the furnishings you should provide in each room of a student house:

• Kitchen: white goods including a washing machine or washer-dryer, cooker, and fridge-freezer.
• Living room: sofas and chairs. You could also provide a TV and a coffee table, but this is optional.
• Bedrooms: each should come equipped with a bed, wardrobe, chest of drawers, desk, and desk chair.
• Soft furnishings: the property should come with carpets, curtains and lampshades provided.

Should I let with bills included? 

You could consider offering your student tenants a bills-included package to make the process of renting easier for students. As students may be new to renting, they might not want the hassle of calling different utilities providers and organising all their bills. 

If you choose this option, you can offer tenants a higher rental price which is inclusive of the price of gas, electricity, water, and Wi-Fi. This might make your property more attractive to students. You will then be responsible for organising the bills for your tenants.

If you don’t want to organise the bills yourself, you could enlist the help of a bundled bills provider. When you use the digital contract signing functionality within Concurrent, you will have the opportunity to refer tenants to bundled utility package providers, The Student Energy Group or Bunch, within the booking flow. You can also earn up to £75+ VAT in referral commission for every tenant you refer. You’ll be able to offer your tenants a bundled bills option, without having to handle the management of bills yourself. 

When should I market my property to students?

Students typically begin looking for HMO properties between October and December for the following academic year. If you want to get ahead, you should start advertising your property from the beginning of the academic year.

Students tend to look for purpose built student accommodation (PBSA) slightly later. Students can be looking as late as September for the coming academic year. This gives PBSA operators a little more time to start planning their marketing strategies. However, in general, the sooner you can start marketing your properties the better. 

How do I protect my income?

It’s often difficult for student tenants to undergo typical referencing checks as usually they won’t have a consistent rental or employment history. They may also not have regular employment or a source of income outside of student finance. Therefore, it’s important to ask student tenants to provide a guarantor. 

The guarantor is usually a parent or guardian and will be responsible for paying the rent if the student fails to. You can reference the guarantor before counter-signing the contract so your rental income will be protected. 

HMO licenses for student houses

In all likelihood, you will let student accommodation to occupants who are not from the same family group. If this is the case, you may need to apply for a Houses in Multiple Occupations (HMOs) license.

Your property may be an HMO if:

• At least three tenants live there from more than one household 
• Toilet, bathroom or kitchen facilities are shared

If you have a large HMO, occupied by five or more people, you will require a mandatory license. Under The Housing Act 2004, local authorities can introduce licensing for smaller HMOs too so you should check with your local council to see what licenses are required.

As a property manager for an HMO, you will be required to make sure that:

• The house is suitable for the number of occupants
• An engineer carries out a safety check of the electrical appliances every five years 
• You send the council an updated gas safety certificate every year
• You can provide safety certificates when requested
• You install smoke detectors

If you are letting an HMO but do not apply for an HMO license you could face a fine of up to £30,000 per property.

Tips for renting to students 

Letting to students for the first time? These tips can help things run smoothly:

• Don’t spend too much on furniture. Student tenants may be more likely to damage furnishings. You can get cheap but reliable furnishings from stores such IKEA or Argos.
• Check with the local council if you need any licenses before renting to students.
• Tell your insurance company that you will be renting to students. Your insurance policy might be different if you’re renting to students so it is important that they are informed.
• Students are exempt from council tax. Make sure that all your tenants have provided evidence that they are students so you can prove that the property is being let exclusively to students. This allows you to get an exemption certificate from the council as evidence so you are not liable to pay the outstanding council tax.
• Lay out your expectations for your home and provide clear explanations to tenants. This may be their first time renting so they might need more guidance than other tenants.

How do I market my property to students? 

Want to attract the right audience? Marketing your properties on a listings platform designed exclusively for students is the perfect way to get them in front of the right tenants at the right time.

StuRents is the UK’s leading student accommodation platform, connecting student renters to over 750,000 beds in university towns and cities across the UK. Listing your properties on StuRents is the perfect way to get more visibility among the student market as our site gets more than 3.5 million annual views every year.  

Find out more about how StuRents could help you find student tenants and fill your beds this lettings cycle.