Landlords Vote Students Top of the Class as Tenants
Landlords have voted students as the most reliable and profitable tenants in a new poll.
Praising their tenants, landlords agree students are more likely to pay their rent on time and managing student homes pays a greater return on investment than other letting businesses.
The results come from a study by the National Association of Landlords (NLA).
Researchers found just over a third of students (38%) had paid the rent late or were in mortgage arrears, while buy to let landlords suffered arrears problems from 59% of blue collar workers and 715 of tenants on benefits.
Other plus points for students, according to the NLA, are:
- Student letting properties stand empty for around 30% of the time, compared with 40% for young families and 49% for older couples without children.
- Returns on investment, or yields, are an average gross of 6.7% a year for student homes, but 6.1% for other buy to lets
The highest yields are in cities with the most renowned universities – except for London, where high property prices drag down returns.
Carolyn Uphill, NLA chairman, said: “It is encouraging to see such positive figures reported by landlords who let to students. However, it is important to highlight that letting property to students, indeed letting to any tenant group, is not an easy win. As a student landlord, I know that it can be hard work and requires the investment of time as many of your tenants are living away from home for the first time. It is this dedication to the relationship that makes letting to students so rewarding.
“As with all tenancies, it’s important to establish a good, professional relationship from the start. It is also essential that you set out fair terms in your tenancy agreement and that both landlord and tenant fully understand their obligations throughout the tenancy.”
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