The number of students in the UK is 2.75 million students studying in the UK and this figure is growing each year. With more students studying at universities than in the past 10-year period, the benefits of being a student landlord has never been higher. But being a landlord for students studying at universities can be considered a risky business. Although it’s not with no risks however, it can be extremely rewarding, as well as it’s a fantastic chance to increase your portfolio of investments.
Tenant requirements for landlords when letting students
One of the major reasons landlords are with a cautious approach when it comes to students for tenants is the image associated with the student life. They may be new to living in a home and without any life experience , or just beginning to be aware of their drinking limits. This lifestyle may result in more use and wear on the home and more work to be done towards the end of the lease.
Not all students are created equal. And even those in the process of learning can be mindful of the environment in which they live in. It is the relationship that a landlord has with a student tenant is also governed by the law and contract rules to safeguard both parties. In this article, we’ll explore the various requirements.
Deciding whether to employ an agency to manage the student tenants
The most common dilemma landlords must make is whether or not they would prefer to lease directly to tenants or rely on a third-party letting agent who manages the home on their behalf. Each choice has pros and cons, with consequences for both finances and time. When renting out an apartment for students there are additional issues that you should keep in mind (such as safety and health laws, and so on. ) A let agent might be able to help and assist you with.
For instance, did have any idea there was a change in the House of Multiple Occupancy (HMO) regulations were changed in 2018? In 2018, any property that has five or more tenants who are from at least two separate households is deemed an HMO. These kinds of situations require careful thought to ensure you’re in line with the law, creating an environment that is safe for students and ensuring that you are fulfilling your obligation of care as a landlord.
Legal requirements before allowing students
* Obtaining a lease license
If your property is located in an area of selective licensing or you intend to rent it to multiple tenants You’ll require a landlord license or HMO license.
* Get official permission in order to lease the home
You’ll have to obtain the consent of any landlord, mortgage company, insurance company or lender.
* Consider data implications
If you’re renting out privately and you’ll be recording, processing, or storing personal information, you’ll need to be registered to the Information Commissioner’s Office (ICO). If you’re working with an agent to let your property You’ll have to talk with them about their procedures and who’s responsible with.
* Be cautious with charges for tenants
The Tenant Fees Act 2019 prevents tenants having to pay fees for referencing, drawing up contracts/inventories, carrying out credit checks or other tasks in relation to administration.
* Get student verification
You’ll have to confirm whether your tenant is a full-time students attending an educational institution.
* Verify your immigration status
If you’re renting in England and Wales, you’ll have to run a ‘right-to rent’ test for your prospective tenants the status of their immigration.
The legal requirements are met at the time of letting students
Like the other things it is not uncommon to have a variety of things you’ll need to perform, or provide your students with prior to the beginning of their tenure. This could include, but not be limited to:
Relevant documentation like the Energy Performance Certificate (EPC) with an E rating minimum of’ (before the agreement is signed) and the valid Gas Safety Certificate (the day they move into) and a student-focused lease agreement that defines the obligations and rights of both the tenant and landlord and a copy of the guide of the government on renting, ‘How to Rent’.
* Details on the government-approved tenancy deposit scheme have you selected to store your deposits into (within 30 days after receiving deposit).
* Information on the use of security equipment in the premises.
Copy of latest Electrical Installation Condition Report (EICR) in the event that the property is located in England.
Legal requirements pertaining to the student’s property conditions
As a landlord for students There are legal obligations that you have to meet regarding the conditions of your tenant’s home. This includes ensuring:
This property safe for human use.
Every electrical appliance is in good functioning order, best if they are “PAT-tested”.
* All plugs, sockets etc. conform to UK standards. UK standard.
* Current standards for fire safety and resistance are met for furniture and upholstery you offer
* There aren’t any obstacles in the way of fire escape routes and the property’s manager and students tenants know about evacuation procedures.
* The measures are put in place to minimize the chance of fire.
• If your rental is located in England rooms that contain combustion appliances must be equipped by a carbon monoxide detector.
* There must be one smoke detector (minimum) for each floor of a house that is used to live in. The alarms should be checked at the beginning of the lease and a report made.
Legal requirements for letting students
While letting students to you the following information:
• Inform the council to inform them that there are student tenants living in your home.
• Consider the hygiene of your water and make sure you check for legionella.
* Perform any necessary repairs to the property for structural damage to the structure of the building and water supply electric, gas, etc.
Make sure that you’re adhering to the terms of your tenancy agreement.
Make sure that your home is in compliance with the law when it is classified in the category of an HMO.
What to put in an agreement for student tenancy
The student lease agreement is among of the most essential documents you’ll have to prepare when you rent your property to students. It defines both the landlord’s as well as the students’ essential rights, and any other arrangements that could be made with regard to the lease or rental of the house. Here are some important things to include in your student tenancy agreement
Important details include that of tenant and landlord and the date when the tenancy began as well as the address of the property.
• Information on whether each tenant is responsible for the entire rent (this is known as being jointly and severally responsible’), so that when one tenant is unable to pay, the others are accountable. This must be clearly stated in the lease and it’s a good idea to inform the tenants directly.
* Information about the duration of tenancy, the cost rent, the method of payment, and the date the time when rent will be evaluated.
• Information about bills, such as whether they’re included in rent, who’s accountable, etc. While it’s usually the responsibility of the tenant however, it’s not uncommon to find HMO or student-landlords to provide all-inclusive leases (rent and other bills are included in the monthly rent).
* Deposit details , including the amount due and circumstances that could cause deductions (for example, rent not paid or property damage, etc. ).
* A detailed summary of the landlord and tenant’s obligations.
* Additional information regarding Guarantors (if relevant).
* Information regarding the tenants notice period, which includes break clauses, if applicable.
* Information on early end of a tenancy including reasons for the termination.
* Confirm whether tenants are allowed to have pets. If yes, you should think about adding a pet-friendly clause.
* Confirmation of whether or not you consent to subletting.
Student property management
Once the more intricate aspects are out of the way and the tenants have relocated and settled in, you’ll have to concentrate on your ongoing student property management. The experience you have will vary depending on how you handle the rental on your own, or work with an agent for letting However, here are a few guidelines to help you find your own unique way to manage your student rental property.
Tips for renting to students
Communication is essential.
It is essential to set your policies in the student tenancy agreement. it should provide a solid base for a solid landlord-tenant relationship. After this is completed and your tenants have settled in, you might be able to contact them on a regular basis and give them the chance to inform you of what’s going on and if there are any issues that require to be resolved. Some landlords assign an ‘lead tenant’ that is a representative for their property. This is helpful since it avoids the need for multiple conversations and makes it simpler to schedule appointments to see the house.
Be aware that this could be the first time renting a property.
Since a lot of students will not have ever rented before – or moved out of their home – take this into consideration when you interact with students. The government’s “How to rent guide’ is an excellent source, however government documents may be intimidating and official. It is worth making your own list of student-friendly things to be prepared for such as an outline of the different security checks that should be conducted and be sure to provide the background of any visit at the rental property.
* Never underestimate the value of a great group of students
As we said earlier that the experience of a student landlord may differ according to the type of students you’ve got. If you have an ideal tenant it is important to keep them.
Students’ degrees typically take about three to four years to complete, with a lot of students opting to pursue postgraduate studies. If you’ve found excellent student tenants who maintain your property in good shape and keep their rent in good standing ensure that you keep them in your possession!
While you are secure with the assurance the tenants you employ are trustworthy renewal of a student contract also decreases the chance of having a costly time of non-occupancy. Many students prefer to remain in their town of study during the summer months, and permitting them to stay in the house (or sublet it if they choose to move back to home) for this period is a powerful incentive to sign a new tenancy agreements.
Keep in mind the fact that communities of students are close-knit and in certain cities, accommodation options are restricted. When your tenant has had good experience, they’re more likely to refer them to fellow students. That means you could be able to locate the next year’s tenants without needing to market!
* Make sure that you’re covered
It’s vital that landlords have an understanding knowledge of the rights of students but it’s equally crucial to ensure that you are protected as well as your property. The insurance for student landlords is vital to provide protection which standard home insurance does not provide. This type of insurance for landlords covers a variety of elements like loss of rent , as well as prolonged non-occupation.
