Five risks every landlord should be planning for before the new academic year

For many landlords, student properties can provide strong occupancy levels and attractive rental yields. However, student lets also present unique risks that are often overlooked until a problem occurs.

As students begin securing accommodation for the next academic year, now is the ideal time to review your property, tenancy arrangements and insurance protection.

1. High tenant turnover creates additional risk

Unlike traditional tenancies, student properties often experience a complete change of occupants every year.

This can increase the likelihood of:

• Accidental damage
• Missed maintenance issues
• Wear and tear
• Disputes over deposits

Carrying out detailed inventories and regular inspections can help reduce problems and ensure issues are identified before they become costly repairs.

2. Empty periods can be costly

Many student properties experience void periods during the summer months. Even short periods without tenants can leave landlords exposed to:

• Property damage going unnoticed
• Escape of water claims
• Theft or vandalism
• Loss of rental income

Make sure your insurer is aware if your property will be unoccupied between tenancies and check any unoccupancy conditions within your policy.

3. Liability risks are often higher

Student households typically have multiple occupiers sharing facilities, which can increase the likelihood of incidents such as:

• Trips and falls
• Fire hazards
• Accidental property damage

Landlords should ensure they maintain a safe property, complete regular safety checks and keep documentation up to date.

4. Rent arrears can impact cashflow

Even with high demand for student accommodation, rent payments don't always go according to plan.

Changes in circumstances, disputes between housemates or guarantor issues can all create challenges.

Having access to rent guarantee and legal expenses protection can provide valuable support if problems arise.

5. Not all insurance policies are equal

Many landlords assume their existing cover automatically protects a student let.

However, some policies may apply restrictions relating to:

• HMOs
• Student occupancies
• Number of tenants
• Property use

It's important to regularly review your cover to ensure it reflects how the property is actually being let.

Final thoughts

Student lets remain one of the UK's most resilient rental sectors, but they require a proactive approach to risk management.

Taking time to review your property, tenancy arrangements and insurance protection before the academic year starts can help avoid expensive surprises later.

If you'd like to discuss your student property portfolio and the cover available, contact the Gallagher team for guidance on 0333 000 0169.