HMOs are very popular at the moment with property investors and many are focused on the student market.
There’s good reason for this – as my latest blog on my personal website highlights, student rents are currently rising fast – in Bristol they are up 6%. To read more from my Del Brown website latest blog post click here…
With thousands of students off to college over the next few weeks, if you have a student investment property and are looking for last minute tenants, here’s a timely warning from Landlord Assist to make sure that you get proper references for your student tenants – just as you would for any other tenants.
Many students are good tenants, but of course some are not. Most students are living away from home for the first time – and some struggle to manage their budgets.
For you as a landlord, it’s all about protecting your investment and keeping the risk of any default on the rent payments (or damage) to a minimum. So make sure you get references and if necessary get a guarantee from parents or other family members with an income.
Here’s the full article from Property Reporter uk:
“Landlords urged to homework on student tenants
Landlord Assist, the nationwide tenant eviction and referencing firm, is urging landlords to fully reference prospective student tenants before entering into a tenancy agreement.
With the start of the academic year fast approaching many students across the country are currently in the process of searching for suitable accommodation.
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:
“Many students are great tenants and a good number are not. The key is to ensure that they are properly referenced and have solid guarantors to ensure that the landlord’s position is protected.
Most students have little or no income and are therefore not able to guarantee the obligations of the tenancy that they sign. Subsequently, most reference checks require students to have a sound guarantor who has the financial credentials and a responsible attitude to ensure that the landlord gets the property back in the right condition and that the rent is paid on time every month.”
With demand in the buy-to-let market continuing to outstrip supply, competition is expected to be strong for the best properties this year.
But with some landlords eager to ensure full occupancy levels for the academic year, Landlord Assist is worried that many will decide to forgo the security of a guarantor agreement for fear that it will slow down the tenancy process.
Stephen Parry, Commercial Director at Landlord Assist says:
“Although many landlords may be starting to feel the pressure because the new term is only a few weeks away and they have yet to secure a tenant, it is essential to consider the tenant’s position.
They are a few weeks away from a new academic year at a college or university which is unlikely to be in their home town and they need to secure accommodation as quickly as possible. The request for a guarantor in such circumstances is unlikely to be a deal breaker but will certainly help to ensure a smoother tenancy and prevent disputes.” “
Discover more about HMOs at our PIM : 27 September 2012 – 6-9 pm Holiday Inn Bristol
If you want to find out more about HMO investment, then do make sure you come along to our Property Investment Meeting – PIM – on 27 September 2012 at Holiday Inn Bristol City Centre – when you can hear from HMO Daddy Jim Haliburton himself!
To your Property Success
Del Brown, Property Options