Students get a bad rep as tenants however according to the latest statistics, they’re actually one of the lowest claiming insurance groups in the UK. The new findings were released in a report commissioned by student specific utilities and service providers, Glide and Accommodation for Students. Contrary to popular belief the report found that students are in fact some of the most desirable tenants for buy-to-let landlords across the nation!
According to the report, a huge 69% of landlords and letting agents agree with the statement that letting to students is better than letting to non-students. London was the only exception although 43% of respondents still maintained that they preferred studying tenants. This represents a nationwide shift in attitudes towards student tenants and has opened up a wealth of opportunities for both students and landlords.
One of the major factors contributing to the pro-student mentality was the opportunity for better rental yields. 84% of respondents agreed with this idea and see students as a great way to increase monthly income. Large HMO properties are particularly profitable, with individual tenants happy to fork out significantly larger monthly rental amounts than a family.
Another benefit of student tenants is the predictable annual market and the constant demand for student housing. 53.7% of respondents appreciate the demand for student accommodation during the school year while a further 45.6% found comfort in the fact that student rent is often guaranteed by a parent or guardian. The knowledge that commitment to studies means students are less likely to up and leave without notice is clearly a valuable asset to British landlords!
Richard Price, head of Business Development at Glide explains, “There is a lot of confidence in the student rental market. Gone are the days where students digs equals substandard. The truth is, students make great tenants. They’re in constant supply and have guaranteed means to pay the rent. With annual turnovers and a desire to rent to this market, landlords and letting agents should make their properties as attractive and visible to students during the clearing period.”
Of course, students may be winning themselves a glowing tenant reputation however that doesn’t mean that landlords should scrimp on taking out a comprehensive insurance policy. The risks of missed rental payments may be minimised however property damage could still occur and if the deposit does not cover any issues you could find yourself out of pocket. Thankfully there are some great deals out there which means that you can enjoy complete peace of mind without breaking the bank.