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Ultimate Guide Level Up Your Student Landlord Property Management Process 26 Jun 2024

Ultimate Guide Level Up Your Student Landlord Property Management Process

Landlords in the UK can capitalize on the opportunity of student residence management. They must provide high-quality residence and other facilities like a fast internet connection. As a landlord, you also need to meet all the legal requirements. You must use all the best practices to accommodate your student tenants.
Proptino Manager has developed a detailed guide for the landlords in the UK. This guide will cover all you need as a landlord in 2024 and beyond. It concerns the Student Landlord Property Management Process. The guide comprises of the information which is crucial for the landlords of the UK.

1. How will the Renters Bill Affect the Student Letting?

The Renters Bill can affect the UK's process for Student Landlord Property Management. Currently, it is on hold but can come back as soon as a new regime comes in place. Understanding the bill is worth it. It can cause shake-ups in your leases. So, it is better to keep in mind the points of the bill while drafting an agreement.
 Among the provisions, as they currently stand, section 21 of the bill will be clashed, taking with it:
· AST and fixed-period agreements
· Landlord's power to evict a tenant without giving any prior notice or reason
The procedure is for possession and doesn't need a court hearing. The government wants to add other changes.
These landlords target students. They base their rental year around the academic calendar. They all rely on the ability to get students to sign up for a 12-month let.
1. If they removed their rights to issue fixed agreements and tenants were free to serve notice at any time of the year, landlords could be left with empty months before the beginning of the academic year.
2. Were there no method of removing most students, who are tenants without violating their leases most of them could stay beyond the beginning of the next academic year and then move in anytime when landlords had lost the annual market for student tenants.

1.1 The changes have appeared in the Student Landlord Property Management Process

After the Renters Bill following are the changes happened in the student tenancies.
1. In November 2023 government gave the right to the landlords of student HMOs they remove the students after the end of the academic term if they refuse to leave the residence.
2. During January 2024, they proposed to let students have smaller and non-HMO residences.
3. Also, at the end of March 2024, the government proposed contracts with fixed rent for students. It enables landlords to shape rental contracts for the academic year.

2. Student Properties are Good Investments

If you have any doubts about investing in student properties, you should clear your mind. Get into it without delay.

2.1 Consistent Demand

The student tendencies do not have big ups and downs. This sets them apart from the general rental market UK.  More students are coming to the UK. So, the demand for student housing is rising too. The caution is that there is a requirement of nearness to the educational institution, so landlords should make sure to develop property in the nearest location to the college or university.

2.2 Pre-determined Rental Periods

Another plus point of the Student Landlord Property Management Process is that the rental periods are pre-determined. The academic period lasts from September to June or July. Even so, many students live through the whole summer. Furthermore, some of the students do part-time jobs and stay at the same place for a longer period.

2.3 Financially Stable and Reliable

It is believed that by renting out your property to students, you will not be receiving steady rental income and expense will always need to follow the tenants for their unpaid rent. However, from a financial point of view, student lets can indeed be very profitable provided the tenancy is structured properly in the first instance.
First, ensure that all sign one tenancy agreement. They should agree to be jointly liable for the rent. However, as a group, they are required to contribute the total amount of money which is equivalent to the rent of the property monthly whether someone cannot contribute their share or if all units have been occupied but one of the tenants moves out.
And, secondly, it is customary to demand students to sign an agreement with the guarantor – often, a parent or a guardian willing to pay for the student’s rent if needed. Not only does that provide a financial fallback for you but if students know their parents might have to pay for damages, they’ll look after the property!

2.4 Higher Rental Yield

It is also common for student properties to be houses of multiple occupancy and you can generate a higher amount of rental income when you decide to charge per room. The highest rental yield is normally achieved by letting each room on a separate tenancy agreement where all charges are included in a ‘standard’ HMO let although the rents used for a house in multiple occupations when student tenants are involved are usually calculated in this way even where all the tenants sign the single AST.
While your repairs and overhead expenses are usually more likely to be higher with HMOs, you will witness overall greater rental returns and monthly revenues than other landlords of single-let properties.

3. Types of Property Students are Looking for?

3.1 Shared Apartments

This is a scenario that is preferred by many young undergraduate students who normally prefer to live with their friends in a friendly environment that is a ‘family-like atmosphere. Each student has his/her separate bedrooms—ideally, a reasonable double bedroom—and the common areas for kitchens, living areas, and bathrooms are also provided.
 This type of let will be seen as a House in Multiple Occupation (HMO). It implies that there are many more rules to follow than with a single let. These rules are mainly about fire safety. Another, more likely requirement has been growing. You may need a property license.

3.2 Purpose-built bedsits and Flats

Year Three students, postgraduate students, and international students prefer to be provided with more private space. Even many young undergraduates also respond to the better life. It comes from some of the more recent, new housing blocks. Such rental accommodation encompasses en-suite rooms or bedsits in sophisticated city center buildings and features hotel services that include a coffee shop, gym, and laundry services.
Not only this but also, if you do not wish to pay particular attention to individuals who will be occupying the property, there is usually a lettings and management company associated with the building who can professionally undertake all necessary tasks including furnishing the property to a certain standard and managing students.
However, letting a third party do it does not mean one will not still monitor the let. But of course, it remains your responsibility as a landlord to let legally and safely; so, always investigate and conduct your periodic checkups.
 

4. How to Find the Students That are Looking for Rental Properties

4.1. Specialist student/HMO letting agents

They should be able to inform you of which type of properties are the easiest to rent out for higher rental fees and the main ‘needs’ tenants approach them with.

4.2. University accommodation offices

If you can get them to show you their accommodation units, then you can see what standards the students can expect and what accommodation type they are most deficient of for which type of tenants.

4.3. Present-day online advertisements on room and house shares

Browse Rightmove and Spare room, Proptino UK to determine what other landlords offer as standard and look into the ‘wanted’ sections to see what students require and would like.

5. Location of the Property

You have to be far more particular about the location of your home when advertising to the student population than you would if you were targeting the broader rental market. Students desire basic facilities close by and in proximity to their school. Also, a few roads will always be at the top of their buy list. Identify them and try to buy there. Student's preferences have changed over time. In the past, they preferred to live close to bars and clubs. In addition to appreciating proximity to parks, fitness centers, and leisure centers, today's health-conscious students also choose to live near bus routes that connect them to the town or city center.
 

6. Interior, Furnishers, and Fixtures

Whichever kind of rental house they decide on, students will except high-quality fixtures and furniture. Many will have lived in the university's contemporary housing during their first year, and they'll be expecting nothing less than or equal to that when they move into their own house. Select durable, contemporary, sleek kitchen and bathroom suites with tiled flooring (and walls in the bathroom) that will be simple for the students to maintain neat and presentable.
⦁ The measurement should not include any area of the room with a ceiling height of less than 1.5 meters.
⦁ Either the living room or the kitchen should have enough area for a dining table and chairs.
⦁ Additionally, make sure there are enough cozy couches and chairs to accommodate every renter at once in case they want to watch the smart TV—which you have also provided—together.
 

7 How to Attract Students

7.1 Targeted Advertisements

As a landlord, you should advertise your property on the relevant channels. You may use social media or other platforms. Proptino Manager is the best free advertising platform. You can list your property there and attract huge traffic.

7.2 Appropriate Pricing

Pricing is the crucial factor that attracts most of students to rental properties. A specialized agency may offer you advice on what rent will, in their opinion, draw in the best renters the quickest while still providing you with a competitive return. You only have a short window of opportunity to draw in student tenants, so resist the urge to list for the greatest price—especially if you've recently refurbished a new property.
A specialized agency may offer you advice on what rent will, in their opinion, draw in the best renters the quickest while still providing you with a competitive return. You only have a short window of opportunity to draw in student tenants, so resist the urge to list for the greatest price—especially if you've recently refurbished a new property.

7.3 Satisfied Tenants Recommendations

If your first year of pupils is going well, they might want to continue for another year. If they intend to leave, though, you may urge them to suggest the house to other students they know. You might even provide them with a financial incentive, which might be less expensive and more efficient than using an agent or advertising yourself to locate new tenants.

8. Conclusion

In conclusion, being a student landlord is a rewarding and emerging job. Landlords in the UK can encase this golden opportunity by providing high-quality residences at reasonable prices to the students. There are many advantages of managing student property. Landlords should go for it.