Maximising your student lettings in university towns

Busy student towns and their regular stream of scholars looking for a place to live present landlords with a potentially lucrative opportunity.

One study found that 55% of student accommodation was supplied by private providers in 2023-24.

Landlords hoping to tap into the student digs market may, however, face a whole host of hurdles when they’re starting out. For example, you’ll be competing with halls of residence you may need to look into getting a Houses in Multiple Occupation (HMO) licence and consider current interest rates which may lead to unaffordable rents for students.

Aside from these matters, there are other things to think about as well.

Students want affordable, convenient and comfortable living spaces. As a landlord, it's essential to understand how to meet these needs, all while being competitive, compliant and making your property stand out for the right reasons.

This guide explores the key aspects of student lettings, highlighting the following:

The benefits of renting to students in busy university towns
The challenges of being a student landlord renting to students in towns like this
Some practical tips to help you create an attractive and tenant-friendly property

The appeal of student lettings in big cities

University towns and cities are buzzing with activity, presenting lots of opportunities to landlords looking to rent their properties out to students.

Here’s why student lettings in these areas might appeal to landlords.

High demand and consistent income

Universities attract thousands of students every year with many requiring off-campus housing. A steady stream of potential tenants and a reliable income source for landlords seems like an obvious benefit.

Prime locations

Properties located near universities — as well as good transport links and amenities such as shops, cafes and libraries are highly sought after by students.

The closer to campus your property is, the more demand you'll likely have.

Likewise, if your property is further out and you’re keen to attract student tenants, what other features can you promote? Off-road parking, a low-maintenance garden or allowing pets might attract a different pool of tenants.

Flexible tenancy agreements

Students typically rent on a 9-12-month basis, providing landlords with predictable tenancy periods and the opportunity to re-evaluate rental terms annually.

If you do rent on a nine-month basis, that gives you three months where you can reset and even capitalise on the summer tourist crowd, with short-term lets via sites like Airbnb or Vrbo.

It also means that if you want to sell up, you won’t need to wait for years to get your property back.

Students are smart

More often than not these days, students are at university to study. When you’re paying around £9k a year in fees, the days of all-night parties and messing around are gone.

They’re also a smart bunch, familiar with technology so bank transfers for rent and minor issues with the wifi or similar will likely be sorted out directly.

Student rental challenges for landlords

While student lettings have some benefits, there are also challenges that landlords could need to navigate.

High turnover

Student tenancies are usually short-term, leading to high turnover rates. You’ll frequently put your efforts into periodically re-letting, which can sometimes be time-consuming and costly.

Wear and tear

Student properties often experience more wear and tear due to the lifestyle and high occupancy rates. Regular maintenance is essential to keep your property in good condition.

Affordability concerns

Many students are on tight budgets, so pricing your property competitively without compromising on quality is crucial.

Making your property stand out

To attract students in a competitive market, landlords need to think beyond the basics. Here are some strategies to make your property appealing to student tenants.

Offer all-inclusive rent

Students might prefer properties with all-inclusive rent that covers utilities, internet and possibly even contents insurance. This simplifies their budgeting and reduces the stress of managing multiple bills.

The obvious downside to this is that you or your lettings manager are then responsible for service providers, which comes with a level of admin and financial risk.

Create a study-friendly environment

A quiet, well-lit space for studying is a top priority for students. Ensure each bedroom has a desk, chair and ample lighting. Consider offering high-speed internet as part of the rental package.

Installing shelving or providing additional storage in study areas to help students keep their space organised will be bonuses to your potential new tenants.

Highlight these features, as well as points like how quiet the neighbourhood is, in your listings to attract serious students.

Invest in safety and security

Safety is a significant concern for students and their families. Ensure your property meets all health and safety regulations, and consider adding extra security features such as keyless entry systems, outdoor lighting, security cameras or secure bike storage.

Making sure all safety features are up-to-date and prominently mentioned in your property descriptions will go a long way to helping your let stand out.

Offering secure storage options can be a big selling point for students with bikes or other valuables.

Having adequate student insurance will set you up as a reliable landlord while offering peace of mind knowing that matters like rental income and malicious damage are insured.

Furnish for comfort and durability

Students are more often than not looking for furnished properties, so invest in durable, easy-to-clean furniture that can withstand heavy use. Opt for practical and comfortable furnishings that create a homely atmosphere.

Including the likes of a comfortable sofa or a large dining table, that can accommodate group study sessions or socialising will be attractive to students. These touches can make your property more appealing without a significant additional cost.

Other items include white goods — a microwave, fridge, freezer and washing machines — as well as a vacuum cleaner and a lawn mower if there is a garden with grass.

Location, location, location

Students value convenience, so if your property is within walking distance of the university, public transport and local amenities, make sure to emphasise this in your marketing.

A nice touch might be to create a welcome guide for your tenants, highlighting nearby amenities, transport options and popular student hangouts. This shows you’re considerate of their lifestyle and can help build a positive landlord-tenant relationship.

Be flexible with lease terms

Offering flexible lease terms, such as summer storage options or shorter contracts, can make your property more attractive to students who may not be in town year-round.

You might also consider offering a rolling contract or an option to renew, which can reduce your vacancy rates and give tenants peace of mind while helping you secure income for longer.

Remember, most students are in halls of residence for their first year while they get settled. With most degree courses being three years, that means you could get a two-year rolling contract for each tenancy lowering your admin requirements.

Prioritise communication and responsiveness

Good communication is key to a successful tenancy. Be responsive to your tenants' needs and address any issues promptly. Building a reputation as a reliable and approachable landlord can lead to positive word-of-mouth among students.

Setting up a WhatsApp group or another direct communication channel for quick updates and issue resolution might be appreciated by your tenants. Regular check-ins can also help you stay ahead of potential problems.

Overcoming common issues

Despite your best efforts, challenges can arise in student lettings. Here’s how to tackle some common issues:

Late rent payments — offer multiple payment methods and consider setting up automated reminders to help students stay on top of rent payments. You’ll want to consider setting up a guarantor for the duration of the tenancy to ensure all rent payments are made.
Property damage — regular inspections and a clear, detailed inventory can help manage wear and tear or actual damage. Ensure that tenants understand their responsibilities regarding property maintenance.
Noise complaints — outline house rules regarding noise levels and be proactive in addressing complaints from neighbours or other tenants, especially if your property is the only student house on the street.

While not all of these instances are covered by insurance, getting cover for tenancies is something any landlord should consider — especially those renting to students.

An insurance policy designed for student landlords can protect your student property against a range of risks. This policy includes cover for the building, your fixtures and fittings, property owners’ liability and malicious damage by student tenants.

How to make the most of your university town property

Renting to students in busy university towns and cities can be highly rewarding, but it requires careful planning and a deep understanding of your tenants' needs. By focusing on affordability, convenience and quality, you can make your property stand out in a crowded market and attract reliable student tenants year after year.

Investing in your property and maintaining a positive landlord-tenant relationship will not only help you maximise your returns but also build a strong reputation as a student-friendly landlord.

For more detailed advice and practical tips on managing student lettings, and how insurance can help, check out these additional resources below.