One of the biggest decisions that landlords face when renting out their property is whether to let to students or professionals. While both groups have their advantages and disadvantages, it ultimately comes down to the landlord’s priorities and preferences. In this article, we’ll explore the pros and cons of letting to students and professionals, so you can make an informed decision about which group to target.

Letting to Students

Pros:

• Higher Rental Yields: One of the biggest advantages of letting to students is the potential for higher rental yields. With multiple tenants occupying the same property, landlords can charge more in rent than they would with a single tenant.
• Guaranteed Rent: Many students have a guarantor, which provides landlords with an extra layer of security. If a student fails to pay rent, their guarantor is legally obliged to cover the cost. Many also tend to pay their term upfront, which alleviates the possibility of rent arrears.
• Higher Demand: With over 2.3 million students in the UK, there’s always a high demand for student accommodation. This means that landlords are likely to have a steady stream of potential tenants throughout the year.

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Cons:

• High Turnover: Students typically only rent for the duration of the academic year, which means landlords will need to find new tenants more frequently than if they were renting to professionals.
• Property Damage: Students may be more likely to cause damage to properties, which can lead to costly repairs and refurbishments.
• Noise and Disturbances: Student properties can be noisy and disruptive, particularly in areas with a high concentration of student housing.
• As students typically make up multiple households, letting to them would typically require a HMO licence, which can be an additional cost for Landlords

Letting to Professionals

Pros:

• Longer Tenancies: Professionals tend to rent for longer periods than students, which provides landlords with greater stability and fewer void periods.
• Less Property Damage: Professionals are typically more responsible and careful with properties than students, which means there’s less chance of damage occurring.
• Reliable Rent Payments: Due to having a stable income, professionals are more likely to pay their rent on time, which provides landlords with greater financial security.

Cons:

• Lower Rental Yields: As professionals tend to rent on their own or in smaller groups, landlords may not be able to charge as much in rent as they would with a larger student group.
• Limited Demand: While there’s always a demand for rental properties, the demand for professional accommodation may not be as high as for student accommodation.
• Less Flexibility: Professionals may have stricter requirements when it comes to tenancy agreements, which can limit the landlord’s flexibility.

FAQs

1. Should I let to students or professionals?

It depends on your priorities as a landlord. If you’re looking for higher rental yields and a constant stream of tenants, letting to students may be the best option. If you prefer greater stability and a lower turnover rate, letting to professionals may be a better choice.

2. How can I minimise property damage from students?

It’s important to include clauses in the tenancy agreement that outline the tenant’s responsibilities regarding property damage. If the student has a history of renting it’s worth looking at references from previous landlords so you have an idea of their behaviour

3. Can I charge more in rent for student accommodation?

Yes, as there are usually multiple tenants occupying the same property, landlords can charge more in rent than they would for a single tenant.

Conclusion

Ultimately, the decision to let to students or professionals comes down to the landlord’s preferences and priorities. Both groups have their advantages and disadvantages, so it’s important to carefully weigh the pros and cons discussed above before making a decision. By doing so, landlords can minimise their risks and maximise their rental income, regardless of whether they choose to let to students or professionals.

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