As the new academic year approaches, some landlords find themselves considering renting to university students. While this segment of the market presents lucrative opportunities, it also comes with its own set of challenges. Understanding the pros and cons, as well as the unique needs of student tenants, can help you make an informed decision, maximise your rental income and protect your asset. 

The pros of renting to students

High predictable demand: 
University towns and cities experience a consistent influx of students every year, creating a steady demand for rental properties. This demand translates into a reliable and predictable income stream for landlords. 

Fixed tenancy periods: 
Most students seek 9 or 10 month leases, giving you the flexibility to reassess rental agreements annually. Student tenancies typically align with the academic year, meaning you can plan your rental cycle and know when the property is likely to be vacant for refurbishments or upgrades.  

Group tenancies: 
Some students (particularly in the second or third year) choose to rent properties in groups, which can lead to higher rental yields. Multiple tenants sharing a property also reduces the risk of missed payments, as the rent is usually divided among several people. 

Upfront payments from overseas students: 
Many international students are required to pay their rent upfront for the entire academic year due to visa requirements or the inability to provide a UK-based guarantor. This ensures a significant portion of your rental income is secured in advance, reducing the risk of arrears and providing a steady cash flow. 

The cons of renting to students

Higher wear and tear: 
Student tenants are often younger and less experienced in maintaining a property, which can lead to higher levels of wear and tear. This may result in more repairs and maintenance during or at the end of the tenancy. 

Rental arrears and guarantor issues: 
Some students may struggle with rent payments, especially if they rely on loans or parental support. Additionally, many students may not have a UK-based guarantor, making it essential to have clear policies in place regarding deposits and the advance rent payments mentioned above. 

Shorter tenancy periods: 
While the fixed-term nature of student tenancies can be an advantage, it can also lead to void periods during the summer months if you don’t have tenants lined up for the next academic year. This can temporarily impact your rental income. 

Meeting the unique needs to student tenants

To attract and retain student tenants, it's important to cater to their specific needs: 

• Proximity to campus: Students prioritise properties close to their university, public transport, and local amenities. Highlighting these in your listings can make your property more appealing. 
• Affordability and all-Inclusive bills: Students often have tight budgets. Offering competitive rent and including bills in the rental price can make your property stand out. 
• Furnished properties: Fully furnished accommodations, including study spaces, are a must for students who might not want to buy their own furniture. 
• Safety and security: Ensure your property meets essential safety criteria, has secure locks, good lighting and functioning smoke alarms. 

Protecting your investment

Renting to students can be highly profitable, but it requires careful management to address the associated challenges. To safeguard your investment, consider YourRepair’s dedicated landlord cover plan. Our service offers emergency repairs, annual boiler checks and 24/7 support, giving you peace of mind and helping you provide a safe and secure rental for your student tenants. 

Your Repair has specialist landlord plans to suit every need and budget. Click the link below and browse our fantastic care packages which are 1 month free for NRLA members!