Typically the student market can be a lucrative business for landlords with yields considerably higher when compared to the rest of the residential investment market.
With this in mind it is often tempting for landlords to accept the first students that express an interest in a property to ensure full occupancy levels throughout the academic year. But Landlord Assist is reminding landlords to treat students as they would any other tenant and undertake full referencing checks first.
Graham Kinnear, Managing Director of Landlord Assist says: “Referencing is a very important part of any tenancy agreement and should be standard practice for any landlord regardless of whether a tenant is a student or not.
“Although a full financial credit check may not be possible for students due to their limited credit history, carrying out employer checks and referencing their parents will help landlords to paint a vivid picture of their character and should give a good indication as to whether they can afford the rent or not.”
“Generally speaking students should have a guarantor to support their application given that, as students, many will only have had a part-time job or indeed no previous employment at all. The guarantor, which is normally a parent or guardian, will support the application and ensure that the rent is paid on time and in full.”
Demand for rented property is expected to soar for the forthcoming academic year due to a significant rise in university applications as many undergraduates try to avoid next year’s rise in tuition fees which will see the majority of universities charge as much as £9000 per year.
With competition expected to be rife for the best properties in university towns across the country, this year represents a healthy opportunity for landlords to enjoy good rental returns.
Stephen Parry, Commercial Director at Landlord Assist says: “This year many more students are applying for university places to avoid rising tuition fees which will be levied from next year. Many who may have deferred their entry for 12 months are starting this September to reduce their financial obligations.
“This is good news for landlords as they can expect their properties to be running at full capacity at a time when rental prices are also increasing to record levels as would-be buyers continue to struggle to get on the property ladder.”
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