Many student landlords may not be surprised to hear it, but a study has
found big deficiencies in the financial and renting understanding of
student tenants.
The research from Housing Hand found that while 71% of students believe
they are financially literate regarding renting, many lack essential
knowledge.
The rental services provider’s Understanding Renters in 2025 report,
highlights that 48% of students are unaware of how their credit score
affects their ability to secure a property.
And 20% don’t understand the concept of a credit score.
Students need to understand the process
The firm’s sales and business development director, James Maguire, said:
“We need to ensure that
student renters
understand their legal commitments and responsibilities in terms of
contracts and notice periods.
“With the proposed Renters’ Rights Bill moving rapidly towards becoming
law, there is an opportunity that we must not miss to better support
students throughout the rental process.”
He added: “Providing them with timely, relevant information in a clear,
easily digestible format should be a core part of the rental service that
all those in the sector deliver, from landlords and letting agents through
to purpose-built student accommodation operators.”
Students don’t understand deposit protection
The survey of 932 students also found that 70% of them are unaware of
deposit-less rental schemes, and 38% didn’t know what a guarantor is when
asked to provide one.
Tenancy deposit protection schemes also pose a challenge, with 53% of
students being unclear about how they function and 67% were unaware of how
long it takes to recover their deposit.
Housing Hand says these gaps create unnecessary stress and delays for
students at the start of their rental journey.
However, the difficulties persist beyond securing a student property.
Setting up a utilities contract
More than half (53%) of student renters do not know how to set up utilities
contracts and 28% are unfamiliar with establishing a direct debit.
Plus, 53% are unaware that contents insurance is their responsibility.
Looking towards the end of tenancies, 33% lack clarity on the process, and
44% are unsure about the notice period required.
Legal uncertainties further complicate matters as a third (33%) of students
are unaware whether their tenancy is joint or individual.
Worryingly, 35% do not understand the distinction between the two.
Impact of RRB for students
With the Renters’ Rights Bill set to have a huge impact on student
accommodation, 76% of students are uninformed about how it will affect
them.
That, the firm warns, raises concerns about their preparedness for upcoming
legislative changes.
The managing director at Housing Hand, Graham Hayward, said: “There are
fundamental differences between student renters and other tenants.
“Our
latest research
provides exceptional insights into the nuances and surprising differences of
the student rental market, showing clearly why a tailored approach is so
important when renting homes to students.”
The firm says it is addressing these challenges by offering tailored
support, including step-by-step guidance through its guarantor service
application process and an online help centre.
Student landlords can help
Simon Thompson, the managing director of Accommodation for Students, said:
“The report highlights that student landlords have a role to play in
bridging the financial literacy gap among student renters.
“With nearly half unaware of how credit scores impact renting, over
two-thirds unclear on tenancy deposit protection, and many lacking basic
knowledge about utilities and direct debits, means the renting process
becomes confusing.”
He added: “The impending Renters’ Rights Bill further amplifies the need
for clear, tailored support and that being a landlord isn’t just about
handing over the keys.
“Student landlords have a unique opportunity to enhance the rental
experience by providing accessible guidance and fostering informed
tenancies, ultimately reducing stress and disputes.”
