Would you rent your property out to students?

[MyMiniCrib]

Hello,

I am about to buy my first buy to let and i was thinking that it will be good to rent out to students by the room as it might end up paying me well, no council tax to pay and renting by the room sometimes mean that the house is never empty (always having a tenant) and i might never have to renovate the entire house at one time.

Its a three bedroom with a living room, i could even convert the living room into a big room and rent that out as well. It has two toilets so it will be two to one.

Please, what are the ups and downs of renting to students?

Many thanks for your help!

 

[stevey1983]

Empty during the summer holidays. Need to find new students every year or couple of years. Wild parties. Upset neighbours

 

[MyMiniCrib]

I thought students always look for accommodation to stay during the summer?

 

[Jackrae]

Speak to housing officer at universities in your immediate area. They are always looking for accommodation and can advise on student periods - not all uni's close for summer. Some types of degree students tend to be a little more responsible than others but far be it for me to suggest which

 

[OwainDIYer]

You may come into HMO restrictions which are more stringent than usual letting regulations.

Consider getting parental guarantees and doing credit checks on the parents too; if they are homeowners you have some assets to sue against if the students do a runner.

I knew a landlord did very well with his student lets; he charged a fair rent and his students stayed with him for 2-3 years so no void periods. During the summer he tarted up the property and did weekly holiday lets to tourists, which charge about the same per week as student lets per month (there is the extra work of weekly handover and bedding change / cleaning etc).

 

[Whitespirit66]

Out of interest, what happens when the students are on holiday out of term time? Do they pay full rent during holidays when they go home - especially the long summer break?

 

[OwainDIYer]

Out of interest, what happens when the students are on holiday out of term time? Do they pay full rent during holidays when they go home - especially the long summer break?

Quite often they will find some other students who are staying up during the summer for resits or working etc. A lot of uni accommodation is used for conferences during the summer so students who are staying up need somewhere off-campus to live

 

[JBR]

No way would I ever rent out a property.

Some friends of ours have a couple of rented houses and have had enormous problems with a tenant in one of them. She failed to pay rent for a very long time and, when our friends took the matter to law, the court came down in favour of the tenant because she had a child.

Sell it.

 

[MyMiniCrib]

Thanks Guys,

You have really given me a lot to think about.

I am currently researching into HMO and will see if this is something i want to go forward with.

Your friend was unlucky with that tenant, buy to let is one of the most 'best paying jobs'

Thanks Again!

 

[Doug99]

1. Make sure all students are named on the contract and responsible for paying their own element of the rent.
2. Don't expect them to keep the property clean. Hire a cleaner to come in once a week and include the costs in the rental agreement.
3. Provide the tenants with several emergency contacts. This will avoid them informing you of a major water leak ( 2 weeks after the event) because you were away on holiday!
4. Make sure all the tenants have signed a formal declaration stating they have been shown how to reset the fire/burglar alarms. This will ensure the alarm is not 'disconnected' by the local council ( at major costs) because you were not contactable.
5. Be prepared to be called 24/7 by drunk tenants because ....... they've lost their keys and are locked out of their room......they can't tune in the telly........the phone doesn't work.......what washing machine setting to use for delicates?........etc etc
6. Be prepared for complaints from neighbours because of noise ......, parties .....inconsiderate car parking ......bins being put out on the wrong day of the week ....... constant fire/burglar alarms


Alternatively........blow your money on a nice holiday

 

[bernardgreen]

Both my daughter's have lived in houses rented to students and we have a property we rent out.

Student lets are risky for both student and landlord.

One of the houses my daughter lived in ( 2nd year ) had damp. illegal plumbing and patched up floors. It took a bit of pressure on the landlord and his agent to get the worse things fixed.

Definitely you should involve the Student Housing office at the Universities near you but beware they will have "problem students" that they will need to find homes for.

Try to avoid first or second year students. They in general have less respect for the property, some have just escaped from parental control and go mad. Some will drop out and leave mid term.

Third year and post grads are the ones who tend to respect and look after the property.

Be very wary of students moving mid term, they may be under notice for bad behaviour where they are living.

Also consider using a letting agency to manage the let. You will pay them a fee but it is worth it as it avoids you being in any emotional conversations with students begging for a second chance. The letting agents have seen it all before and do not allow themselves to be swayed by tearful students facing eviction. They will also match good tenants to good property and lesser quality tenants to lesser quality propery.

 

[mattylad]

No.

I have had to clean a house my son was a student in, they make a heck of a mess.
Some do care, the rest don't give a t0$$.

 

[foxhole]

Letting by the room makes it a house of multiple occupancy with all the associated extra rules and conditions [hard wired smoke alarms etc].

 

[Norcon]

Know a bloke who rented out a house to a single mother on the dole.
She stopped paying the rent and went six months into arrears.
He changed the locks and turfed her out unto the street and won his case in court.

 

[Dave54]

No way would I ever rent out a property.

Some friends of ours have a couple of rented houses and have had enormous problems with a tenant in one of them. She failed to pay rent for a very long time and, when our friends took the matter to law, the court came down in favour of the tenant because she had a child.

Sell it.

Fair enough, but what do you do with the money then? Returns on letting are at least double the best bank rates, and you have inflation proofing, and probably profit when you sell, in the ownership of the house itself. Depends on circumstances of course.
Personally I wouldn't even look at students. Too many horror stories of wrecked lets, and hassles with them generally.