A boom in student numbers has led to one letting agent to declare that
their local property rental sector is being sent into a frenzy.
The demand is being seen in Leeds and students there are already using
virtual viewings to reserve their homes for next summer.
It is now estimated that Leeds’ student population has rocketed to more
than 70,000 tenants.
The spike in demand follows the University of Leeds declaring that many of
its courses are oversubscribed this year.
They are even offering students wanting to study business or law free
accommodation and £10,000 in cash to defer their studies to the 2022/23
academic year.
300 student properties that are available for renting
Now one of the city’s estate agents, HOP, has unveiled more than 300
student properties that are available for renting next July.
The firm already manages a huge portfolio of quality student homes in Leeds
and its lettings branch manager in the city centre, Josh Buckley, said:
“The pandemic meant students were hesitant to start university in 2020, or
they stayed home to study remotely.”
He added that their student portfolio is now 100% let and they are
marketing student homes for letting next year.
Mr Buckley said: “It seems crazy considering that first-year students have
just started University and might not know who to live with next year but
demand for property is there.”
The student letting agents have also found that students appear to have
larger rental budgets than previously and are renting more expensive homes
with high specifications.
Mr Buckley said: “Regardless of how cheap a property is, a dated property
will usually be hard to let.”
Student homes must be finished to a high standard
He added that student homes must be finished to a high standard with
quality furniture and that many students are opting for all-inclusive rents
to include their broadband and utility bills.
The letting agent also says that they are seeing an influx of student
property investors, particularly from the south, who are wanting to buy
quality student homes in Leeds.
The managing director of Accommodation for Students, Simon Thompson, said:
“This demand from students has been strong in many parts of the country and
it shows how strong that demand is if students are already looking to rent
property from next summer.
“However, the student lettings agency is correct in saying that landlords
must offer student homes that are finished to a high standard, and they
must have quality furniture for students to use.”
He added: “It’s this quality of student homes, along with its location,
that makes a student property a success – though property investors without
lots of experience could utilise the expertise of reputable student letting
agents to ensure their investment is a success.”
Help student property landlords succeed
To help student property landlords succeed, HOP offers this advice:
· Before investing in a student property ensure it has the correct HMO
licence and paperwork – and check it meets minimum space standards
· Speak with a reputable student letting agent so you will know what the
regulations are before making an investment
· Students do not like cramped or small bedrooms – particularly in damp,
cold basement conversions
· Consider sacrificing living space in a student property to create
additional bedrooms
· Consider how many bathrooms a student property has in relation to the
number of bedrooms
· Student properties with good transport links or within walking distance
of a major university will be popular.
Would-be student landlords
The firm says that would-be student landlords should also ensure that they
have secure locks on all external doors and consider installing super-fast
broadband.
They should also decorate to a high standard and provide quality furniture
– with special touches such as adding shelving and mirrors to bedrooms to
help boost the property’s appeal.
It’s also worth understanding that while student properties deliver
attractive yields and rents, the wear and tear issues can be considerable
too.
That means improvements and upgrades, including decorating, will be needed
at least every five years for student properties – and landlords should
budget to meet professional cleaning bills and repairs between student
tenancies.
The final piece of advice from HOP includes taking a full photographic
inventory and using a reputable agent who is part of a redress scheme and
has client money protection insurance.
Tenancy disputes when student tenants check out
Meanwhile, one lettings agency in Newcastle says it has resolved how to
help reduce tenancy disputes when student tenants check out.
This year, the Walton Robinson agency says it has processed more deposit
returns than ever before and has seen an 80% reduction in tenancy disputes.
Gareth Thompson, the firm’s property management manager, says that they
work to make fair decisions quickly, and offer advice and information
before the tenancy ends – including checklists and guidelines to follow
before they leave to reduce the amount of work that is necessary
afterwards.
The result of this is, they say, an improvement in the property’s condition
when student tenants leave.
