With the new semester fast approaching, student landlords are getting ready to welcome a new set of students into their properties.
However, with student properties being unique buy-to-let opportunities, it can be difficult for new student landlords to know where to begin - although research has shown that demand is high for student lets.
Therefore, the experts at money.co.uk have provided their top tips for student properties ahead of the new school year.
1. Budgeting for wear and tear
Make sure to budget for the extra wear and tear that comes with student properties. You’ll probably need to pay for professional cleaners when each group of tenants moves out.
You’ll also need to budget for furnishings and white goods, as student properties are expected to be furnished.
2. Choose your investment area wisely
Do your research around HMOs (houses in multiple occupation). These are properties with three or more tenants from different households and have their own sets of rules that you must abide by. You’ll probably need a special licence to let one of these.
You’ll also have to take this into consideration when it comes to insurance, making sure that your policy fully covers an HMO.
3. Keep a keen eye on the paperwork
Make sure that your tenancy agreement is watertight and covers all the bases such as how much notice is required if tenants want to move out.
Consider asking for guarantors before reaching an agreement. You may even ask each tenant to provide their own guarantor.