Students - They're messy, careless, loud and a nightmare to deal with. Despite higher profits, why would any landlord bother having them as tenants? Like the stereotypes about landlords, they are false for the modern student. The stereotypes around young people today and students are oxymorons. How can 'Snowflakes' care so much about offending anyone, yet take no care of someone else's property? We're going to dispel these myths and show you why students are a no brainer when it comes to choosing your tenant!
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Students cause damage
Seven out of ten UK landlords will not rent their property to students (source: SPCE). One of the leading reasons is the stereotype that students are far more likely to cause damage. A report by Glide, a leading utility provider, found that 25% of landlords highlighted 'damage caused to the property' as a concern with student tenants. However, in the general market, 27% of landlords list property damage as a top concern when renting out their properties (source: Portico). Current landlords took these reports and is shows students follow the same trend as the general market.
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Students are too loud
Students love a good party. However, the idea that they are oblivious to their surroundings and neighbours is incorrect. Students regularly ask neighbours if they are ok with them holding a party and usually ask that the neighbour knocks on the door if they are being disturbed. This does not mean that students, therefore, have a licence to make as much noise as they want but I am dispelling the myth that students are inconsiderate.
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Students are time consuming
Student tenancies are more time consuming than regular, longer tenancies. It isn't a problem with student tenants per se but stems from the fact that their tenancies are shorter and often the houses are in a worse condition. The most time-consuming aspects of a tenancy are the initial period and the clean-in/check-out. Most student tenancies will only last a year or if you're lucky two. Meaning as a landlord you are going through those busy periods every year. Only 32% of students say their housing quality is at a high standard (source: YouGov). Low-quality houses need more maintenance and, therefore, require more of a landlord's time. Yes, student tenancies are time-consuming, students themselves are not.
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Students are satisfied with less
Like everyone, students look for a good deal. Students want different things to other tenants, but that doesn't mean they will happily pay thousands of pounds for very little. Students are more forgiving than other tenants and are less likely to complain but that attitude is not reciprocated by landlords. According to the National Student Housing Survey, 35% of students say their house has problems with damp, 32% say there is a lack of heating/hot water; 5% go further to say that they live in dangerous conditions. We think every landlord should ask themselves this simple question: 'Would I live here?'. If your answer is no, you need to make some serious improvements!
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Students don't pay rent on time
Students are usually very prompt with rent payments. One of the most common reasons for students being late with rent is irregular rent schedules. Many student tenancies have large payments at irregular intervals, which means it is easy for students to forget when each payment is due. However, a gentle reminder normally results in a student paying within 24hours. First 4 Lettings, a student estate agent, claim they have a 98% rental payment success and many other student estate agents tout a similar figure. Furthermore, around 1% of students fall into rent arrears compared to around 9%(GOV) of general private renters. This shows that students are actually far better for being on time!
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Students are afraid of fighting for their deposit
The stress and time a deposit dispute takes can be hard for students, especially as it is unlikely, they have had to deal with something similar. However, that does not mean they are afraid to fight if they feel deposit charges are unfair. Astonishingly one in six (National Student Accommodation Survey) students struggle to get their money back. Many students take their disputes to arbitration and many of these consider taking legal action when it comes to disputes.
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Students can afford high rents
Most students get help from elsewhere. Parents, on average, contribute more than £2500 every year and 51% of students struggle with rent payments. Even with part-time jobs, the gap between accommodation costs and student loans is large. Students only pay higher rents because the stock of good housing that accepts student tenants is limited and low-cost options are usually poorly maintained. When renting to students landlords turn a 4 bedroom house into a 6 bed by using the lounge and dining as bedrooms but do not reduce the rental to benefit the students.
Most stereotypes about students are untrue and based on a small minority. Students make some of the best tenants as you can rely on a steady stream of new tenants each year and achieve much higher rental yields. If you're in the landlord game or planning on getting involved, students are the way to go!
Do you know any other myths about student tenants? Let us know in the comments below!
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