Key points to remember before securing students as tenants in your investment property
With schools having gone back to start a new term, it is now only a few weeks until students across the country start to leave home and head to university. With many young people leaving home for the first time, and others starting their first year of study without the benefit of guaranteed university accommodation, the crucial question is where are they going to live?
A recent article in The Times has claimed that student housing is one of the fastest growing property sectors in the UK, with investment reaching £2.4 billion in 2014, and the current figures reported for 2015 are said to be exceeding those for the previous year
With the growing demand for good quality student housing, the idea of letting an investment property to a number of students may seem attractive. It is important however to remember three key points before securing students as tenants. Firstly; you will need to obtain a House in Multiple Occupation (HMO) licence from the Local Council to allow you to let your house to three or more people who are not of one 'household' (eg, family). Secondly; it is essential to have carefully drafted contracts with each of the students, including provision for a deposit, which must be properly protected in a designated deposit account. Finally, you will need to consider the management aspect of student housing, it may be beneficial to you to instruct a letting agent to manage the property, and the tenants on your behalf.
If you need assistance with the drafting of an assured shorthold tenancy agreement, or in expanding your portfolio of investment properties, the Property Team at Crane & Staples would be pleased to assist you.