At the last count, there were around 2.5 million students in towns and cities across the UK. Many of these are looking for rental accommodation close to their chosen university.
If you are a buy to let landlord, this is a pretty stable and lucrative market but there are some special rules and regulations that need to be met. Here we take a closer look at what you should think about before renting your property to students.
Houses in Multiple Occupation
Student rental accommodation is classed as HMO or houses in multiple occupation. The Government website states that HMO status applies if you have three or more students (or unrelated people) sharing facilities such as the kitchen, bathroom and communal areas like the living room.
The property is classed as a large HMO should you have 5 or more separate tenants, all landlords of large HMOs have to apply for a HMO licence from the local council.
This can vary from place to place, however. Some councils insist that you apply for a licence no matter how many students you have or the type of rental property. It’s, therefore, important to check what the rules are in your local area. Warning: If you are found to require a HMO licence but don’t have one in place you as the landlord can be fined up to 12 months rent.
Your Duty of Care as a Landlord
If you are operating a licenced HMO, the council will issue you with a set of rules and regulations that you will need to follow. These include putting in smoke and carbon monoxide alarms and having regular gas and electrical safety checks on the property.
The Government website points users to Shelter for more information about landlord obligations which they state include:
- proper fire safety measures are in place, including working smoke alarms
- annual gas safety checks are carried out
- electrics are checked every 5 years
- the property is not overcrowded
- there are enough cooking and bathroom facilities for the number living there
- communal areas and shared facilities are clean and in good repair
- there are enough rubbish bins/bags
Furnishing the Property
Students are unlikely to have their own furnishings; most student lets are furnished properties. You will need to furnish the flat or house with almost everything you will find in a normal home such as white goods, TV, sofa, beds and mattresses and even ancillary items such as crockery and cutlery. You will also need to include curtains and other soft furnishings and fixtures. The only items you don’t need to provide are the more personal items like towels and bedding.
Wear and Tear
One issue you will need to be conscious of is the wear and tear on your furnishings. It’s a good idea to strike a balance when setting up your rental property. While you don’t want the furniture to look too cheap or shabby, neither should you buy expensive delicate items. Try to opt for sturdy, serviceable furniture.
Tenant Turnover
One aspect of renting to students you will have to come to terms with is turnover. It’s not unusual for one or more people to move out of the property – some drop out of their courses and return home; others may have just reached the end of their academic year. That means your income can fluctuate and finding new tenants at short notice is always a potential challenge.
The benefit of renting a property to students, however, far outweighs the additional work that you may have to carry out as a landlord. Higher rental income and a constant supply of tenants in university towns and cities means this is a great option and one well worth investigating.
Student HMO Help is at Hand
HMO legislation can be complex and managing the property can be extremely time consuming, that’s where we come in. Northwood are adept at working with landlords of student HMOs, easing the time burden and managing the day to day queries from tenants. Why not have a chat with one of our local property experts to find out more about how we can help.
