JANE has a one-bedroom buy-to-let flat in Bloomsbury, not far from University College London. She is considering letting to students, but is worried about their rowdy reputation. What are the benefits of letting to students, and how can she minimise the risk of damage to her property?
Kari Trajer, of the estate agent Hurford Salvi Carr, says: The poor image of students is fast disappearing. Many students looking to rent in Bloomsbury and surrounding areas are now in their third year of university or even in company-funded graduate trainee programmes. Student tenants can represent an opportunity for a steady income, particularly if the market has dipped and Jane is finding it hard to let her flat.
The Central London area attracts a vast number of family-funded students who generally are hard-working and want to be independent and enjoy the responsibility that living away from home entails. Only a small minority of student lets are problematic.
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A UK guarantor is the linchpin to ensuring that rental income is guaranteed and that the property is treated with respect. The guarantor is usually a family member or family friend or, in the case of some overseas students, a solicitor. In all cases the landlord or managing agent must ensure that the nominated guarantor has sufficient funds to cover rental costs in the event of the tenant defaulting on the rent. This means checking essential credit references.
We generally advise that rent is paid in advance in either three, six or twelve-month instalments. Additionally, six to eight weeks of rent are taken to cover any dilapidation. This is repayable at the end of the tenancy, minus any unpaid rent or cost of damage.
Jane should make regular inspections of her property, about once every two months, to ensure that it is being looked after. Offer to include weekly or fortnightly cleaning for the tenant, with this extra cost reflected in the rent. If there are any concerns over and above ordinary wear and tear, for example noisy parties, Jane can contact the guarantor. It is amazing the difference that a “friendly word” from the hand that feeds them can make to students.
The majority of student tenants are focused on their studies. The strategy of landlords working as a team with the guarantor will ensure that tenants take care of the property.
Hurford Salvi Carr: 020-7490 1122
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