As the nation’s ‘summer holidays’ start to come to an end, millions of students are set to enter the private property rental market.
Property lettings specialist, Belvoir Sheffield, has compiled a list of handy tips for both student landlords and prospective new tenants at this time of year.
The student market continues to be a powerful force in ‘buy to let’, with the UK’s student population having grown consistently over the last 10 years. And it shows no signs of slowing down, with some estimates saying that student numbers are set to hit 3 million by 2014.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of student accommodation in Sheffield said: “Letting to students is a specialist area of the private residential lettings market and it requires landlords to deal with a much higher level of regulation than standard buy-to-let, since, for example, many ‘student lets’ will be classed as HMO’s (Houses in Multiple Occupation).
“ Landlords letting to students in some types of HMO now need a license from their local authority and, in addition, the cost of meeting some of the stipulations surrounding the accommodation – such as the installation of fire escapes and safety doors etc – can be quite costly – so first time landlords should seek advice before entering the market,“ he added.
A higher turnover of tenants in student properties, greater supervision and management input is often required. Experts such as Belvoir can offer a great deal of experience and expertise in guiding both landlords and student tenants alike through the many different issues.
Rick, whose letting agency on Campo Lane in Sheffield, specialises in providing houses to let Sheffield, added: “ For many students, renting a private property will be an entirely new experience. Having left the family home they will often find themselves sharing a house with people they have only just met.
“It is very important that student tenants take the right steps to protect both themselves and the landlords or owners of the property they are renting from. By following a few simple steps, the whole process should run quite smoothly.”
Belvoir advises that student tenants should always ensure:
- They are accompanied by a lettings agent when first viewing a property, or at least, for safety reasons, have the landlord’s full contact details in advance, so they can confirm who they are meeting.
- Sign a proper Assured Shorthold Tenancy Agreement and get a written receipt for the deposit.
- Before signing, make sure they fully understand the terms. If all bills, including rent, are paid on time; if any damage is put right and the property is maintained properly, there should be no problem in getting the deposit returned when the tenancy ends.
- If student tenants want to redecorate or make changes (such as putting up shelves) they must get the landlord’s permission in writing. And remember that when renting a property you generally need to return it in the same condition as you found it.
- Agree a dated inventory – possibly illustrated by photographs, which clearly describes the condition of the property, its furnishings and fittings.
- Make sure that all appliances have been PAT tested and ask to see furniture fire regulation labels for furnished properties. It is also a good idea to make a note of meter readings when moving in and again when moving out.
- If required, agree a schedule of repairs and improvements to the property before the tenancy begins.
- In joint tenancies, open a shared account for all bills and rent to minimise any risk of picking up the responsibility for defaulters.
- If moving out, leaving behind house mates with whom you shared joint finances, ensure all companies who send the bills are advised immediately. And once payments are no longer active, write to the main credit reference agencies and ask for a notice of ‘disassociation’ to prevent former house mates’ credit histories affecting yours in the future.
- Don’t forget to take out personal insurance covering theft and damage to personal belongings whilst living in the property (Contents Cover).
- If returning to the family home over main holiday periods, leaving the student property empty, ensure that heating is turned off or set to a low temperature and turn off the main stopcock to the water supply.
- When eventually move out after completing College or University, ask the landlord or agent to be there to check the property over.
- If the property is managed by a lettings agent, they will advise on all the above aspects and be available to handle any queries or problems during the term of your occupation. But always ensure they are members of the Association of Residential Letting Agents (ARLA) or accredited by the Propertymark Scheme (Propertymark).
Rick adds, ”There is no doubt that in many areas of the UK supply of rental accommodation for students has failed to keep up with demand so there is good investment potential for anyone looking to invest in this sector of buy to let, which still showing strong rental growth.”
“But it is important for any prospective ‘student landlords’ to do their own local research by talking to agents such as Belvoir and the Universities’ accommodation offices to determine average rental levels and the potential return on investment.
Belvoir Lettings Sheffield is the One Stop Shop Specialists for residential property, for buying and selling, for lettings including student property management, investment, and wealth management advice, fit outs and renovations, mortgages and conveyancing.
Belvoir Sheffield was the winner of the Belvoir Franchise of the Year Award for 2013
For more information on Belvoir Sheffield, please call lettings on 0114 25 25 215 or sales on 0114 331 0033, or email us at sheffield@belvoirlettings.com
