A landlord's guide to student lets

2024 marks the second-highest year for UK university applications ever.

But since 2017, student accommodation hasn’t kept pace with demand. This has led to a 45% shortage, with over 350,000 student beds needed to meet the growing demand.

In university cities like Bristol and Manchester, this shortage has reached crisis-point, pushing students to seek housing in the residential rental market when purpose-built options aren’t available.

If you’re letting a property in a university town or city, this could be an opportunity.

But what sets a student letting apart from a regular rental? And what should you keep in mind?

Let’s explore the essentials every landlord should know about student rentals.

What type of tenancy is a student let?

Most private tenants in the UK have an Assured Shorthold Tenancy (AST), and most student lets also fall in this category.

In the private sector, ASTs typically last 12 months. However, students often expect fixed terms aligned with their academic year, which is around nine months.

Like a regular tenancy agreement, you and your student tenants both enter into a fixed-term contract and commit to the agreed term. The contract can only be ended early if both parties agree and there’s a break clause in the contract.

As with other leases, your student tenants have the right to quiet enjoyment of the property. Your job, as landlord, is to ensure the property is safe and in good condition.

And as a student let, the rent amount cannot be increased unless specified in the agreement.

Tenancy agreements for students

Students often come in packs, so you can offer a lease to multiple tenants in one of two ways:

1. Joint agreements: all students are equally responsible.
2. Individual agreements: each student is only responsible for their own portion.

The government provides a free standard AST tenancy agreement template but you may also want to seek the advice of a lawyer to draw up a contract for you.

Do students pay deposits?

Yes, like other types of tenants, students pay deposits. As the landlord, you must protect student deposits appropriately, as you would with a regular private rental.

You’re bound by section 213 of the Housing Act 2004, which requires you to protect the tenant’s deposit in a government-approved scheme within 30 days of receiving it.

Is your property a HMO?

If you rent out a property to three or more students, it might be classified as a House in Multiple Occupation (HMO).

A HMO is when individuals from multiple different households — i.e. your tenants aren’t related to each other — reside in one property, and share facilities such as the kitchen, bathroom and toilet.

Larger HMOs of five or more tenants require a mandatory HMO licence from your local council. The application asks for detailed information about your property, including its layout, fire safety measures and the facilities available to tenants.

HMOs must meet higher safety standards, including regular fire safety checks, adequate kitchen and bathroom facilities, so bear this in mind.

Licence fees vary from one council to the next and are usually based on the number of occupants and the size of the property.

What are the health and safety requirements of a student landlord?

Regardless of whether your property is a HMO, you have a duty to adhere to some health and safety regulations.

Gas and electrical safety

Annual gas safety checks are mandatory, and all electrical installations must be safe and checked every five years. You must provide the gas safety certificate to the tenants.

Fire safety

Working smoke alarms must be on every floor, and carbon monoxide alarms are required in rooms with solid fuel-burning appliances.

Energy Performance Certificate (EPC)

An EPC rating of E or above is required before letting the property. You must give this certificate to your tenants.

Specialist insurance, like landlord’s home emergency cover, can offer enhanced protection when the likes of a flood, a fire, a power outage or a boiler malfunction causes sudden and unexpected damage to your property.

Furnishing and maintenance

Student lets are typically fully furnished, so providing durable, functional furniture is essential. For example, a bed and mattress and a good sized desk in each room — and a kitchen with white goods and that all important kettle and toaster.

As a student landlord, you have to make sure the property is well-maintained and promptly address any repair issues. We suggest carrying out regular inspections to help prevent problems.

That being said, you can’t just waltz into the property willy-nilly, though.

Your right to inspect the property requires adequate notice, which is typically a minimum of 24 hours and tenant consent. You must also conduct the inspection at a reasonable time, i.e. between 9am – 5pm, Monday – Friday.

What about rent and guarantors?

Students often pay rent termly, in line with their loan schedules, but monthly payments are also common.

You may require a guarantor to ensure rent is paid if your student tenant cannot pay. This is typically a parent or guardian and they will need to sign a deed of guarantee.

Council Tax

Full-time students are exempt from paying council tax. This won’t affect you immediately, but you should make sure tenants provide proof of student status to the local council to avoid letters at your property long after they’ve graduated.

Do I need special student landlord insurance?

Standard home insurance won’t cover student lets.

Make sure you have landlord insurance that covers student tenants, including liability and contents coverage if the property is furnished.

You’ll likely want a provider offering enhanced cover for student tenancies, including cover for malicious damage.

Noise and neighbourhood relations

Students often live in residential areas, so it’s important to communicate the importance of respecting neighbours and managing noise levels. Afterall, the complaints will likely find themselves back at your doorstep eventually.

Ending a student tenancy

After the student tenancy ends and there are no disputes, you must return their deposit within 10 days.

If there are issues, use the deposit protection scheme’s dispute resolution service.

A recap of student lettings

And that’s it! By understanding these key areas, you can manage your student let effectively, ensuring a positive experience for you and your tenants.

Diligence will go a long way to getting your tenants happy and your life stress-free. Most university towns and cities have dedicated property management agencies geared specifically to student lettings, which can help you oversee your responsibilities.

Student landlord insurance can help when things go wrong, and you can even get savings when insuring multiple properties online, if your landlord venture grows successfully!

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