As hundreds of thousands of students head off to university this month, it’s been revealed that students are not only the most reliable tenants, but produce the highest rental yields too.
In its latest Landlord Panel survey, the National Landlords Association (NLA) found students are the least likely of all tenants to miss a rental payment, with just 38% of landlords letting to students experiencing arrears in the last year.
Student landlords also experience the lowest incidence of voids with fewer than one in three (30%) having empty properties in recent months.
In addition, student tenants and Houses of Multiple Occupation (HMOs) offer the highest rental yield; 6.7% and 7% respectively, considerably higher than the 6.1% UK average.
NLA Chairman Carolyn Uphill, said: “It is encouraging to see such positive figures reported by landlords who let to students. However, it’s important to highlight that letting property to students – indeed, letting to any tenant group, is not an easy win. As a student landlord myself, I know that it can be very hard work and requires the investment of time as many of your tenants are living away from home for the first time. It is this dedication to the relationship that makes letting to students so rewarding.
“As with all tenancies, it’s important to establish a good, professional relationship from the start. It is also essential that you set out fair terms in your tenancy agreement and that both landlord and tenant fully understand their obligations throughout the tenancy. If you get this right then the tenancy generally runs smoothly.”