Student accommodation - Reducing risk in unoccupied properties
It’s that time of year again, when students head home for the summer months. As a landlord of student accommodation, this could mean that your property is now empty for a significant period. You may see this as a time to take a break yourself, relieved from the worry of late-night tenant calls.
But an empty property comes with its own risks.
Check your policy
If you are a landlord with student accommodation, having the right insurance in place is crucial. When selecting your policy, pay special attention to the unoccupied property limit.
Every insurer has a different definition of unoccupied property. The timeframe for which a property becomes unoccupied also varies and can be as little as 5 days up to 90 days. For landlords with student accommodation, this can pose a significant problem every summer when students vacate for the holidays.
Insurers view empty properties as a higher risk. It is important that you inform your insurer that the property will be unoccupied. Otherwise, should an incident occur, it will likely not be covered.
When you speak with your insurer, they will likely outline specific conditions that need to be met to ensure the property is still covered during the unoccupied period.
Many insurers offer specialist student landlord insurance, which includes an extended unoccupied period. To ensure you are adequately covered, consult with an insurance broker when arranging your policy.
Top risks of an empty property
Water damage
A small leak can quickly turn into a big problem if it goes undiscovered for a long period of time. Not only can the leak cause extensive damage, but prolonged damp can cause other issues, such as mold growth and rot.
Reduce the risk:
- Your policy may outline certain conditions and measures to put in place when the property is empty. Most commonly you may be required to either turn off the water supply at the mains and/or drain down the water supply or maintain a low even temperature in the property to reduce the risk of pipes freezing over. Some policies may even state an exact minimum temperature.
- Ensure items left within the property are in a safe space, especially if your property is in a high flood risk area.
Criminal damage
The risk of criminal damage and break-ins increases when a property is empty. Criminals may not only target the contents but also fixtures and fittings, such as pipework and boilers, which can be expensive to replace.
Reduce the risk:
- Ensure suitable locks are on all entry points to the property, making sure all windows and doors are secure.
- Check all alarms and other security measures are in working order. You may even consider external security lights when may deter thieves.
- Regularly check the property and remove any signs of unoccupancy, such as a build up of post.
- Board up windows and doors. Depending on your policy and where your property is located, some insurers may insist that this is done whilst the property is unoccupied.
Fire damage
Electrical faults, gas leaks or the wrong item left near a window on a hot day can lead to a fire in your property. However, in unoccupied properties, the most common cause of fire is arson. An empty property can be a prime target for criminals.
Reduce the risk:
- Turn off the main gas and power supply to the property if possible.
- Regularly keep informed of fire safety regulation within rental properties and ensure your property meets all necessary requirements. This includes ensuring fire safety assessments are up to date as per the Fire Safety Order 2023 and that smoke and carbon monoxide alarms fitted correctly and in working order.
- Switch off and unplug any electrical equipment.
- Ensure all doors are kept closed to slow the spread should a fire break out.
Conduct regular inspections
Checks of the premises are standard practice for rental properties and these should be continued whilst the property is unoccupied. You, or your managing agent, should also ensure that clear records are kept of each visit as these will be useful should you need to make a claim on your insurance policy.
