TEN dos and donts for student landlords
We are excited to launch our new series of content aimed at student landlords.
From why you should never take a retainer over the summer months to how to make sure your rental is kitted out with the latest on trend furniture, in this blog NRLA policy manager James Wood shares ten do’s and don’ts when it comes to renting to students.
The NRLA is hosting a webinar for student landlords on 1st December. Register for this webinar here.
Do
Take the time at the start of the tenancy to chat to the students In the case of student tenants, you may be the first private landlord they have ever rented from, so taking the time to make sure the students feel settled and know what they can expect from you, and you of them, can go a long way.
As a landlord it is always a good idea to gently remind your tenants of their obligations at the start of a tenancy. For example, that they should contact you in the event of repairs that need doing, and how they can expect to get hold of you in an emergency. It’s also good idea to explain to your tenants they should expect 24 hours notice before you enter the property.
Going out of your way at the start of the tenancy can make for an excellent relationship with your tenants. You may choose to do a walk about of the property to demonstrate where things are, how any appliances you’ve provided work, where the stopcock is located and so on.
It is also worthwhile explaining the tenancy agreement to your student tenants. For example, if you have a HMO and the tenants are all on a joint tenancy agreement, explaining from the start that everyone is responsible for the whole rent being paid on time could be beneficial. Equally, explaining the details of the deposit and how that works could be useful. You may find it useful to give your new tenants a copy of our template welcome letter.
Do
Apply for a licence if you need one. When you have 3 or more students living in a house together then you will have a house in multiple occupation (HMO). HMO landlords have to follow additional legal rules about managing the property and will sometimes also require a licence. Failure to follow these rules or apply for a licence can carry steep financial penalties so it’s vital you follow them. Unsure if your property needs a licence? Be sure to make use of NRLA Licensing Support to find out, and read our HMO licensing guidance for landlords.
Do
Make use of NRLA partners and recognised suppliers when it comes to furnishing your property.
Most students have either come from living at home or from university accommodation. This means very few will have their own items to furnish a property with. Students on the whole tend to seek properties that are furnished.
Of course, you should always make sure the furniture in your rental properties is in good condition prior to a new tenancy starting, but taking the time when furnishing your property to research the best products for student rentals can stand you in good stead.
For example, you’ll want furniture that is strong and long-lasting.
NRLA members can benefit from 10% off all items at LOFT Furniture, an NRLA recognised supplier. You can learn much more about the types of furnishings that are suitable for student properties here.
If you're looking to replace an entire kitchen in your student rental, or perhaps give the rooms a fresh lick of paint ahead of new tenants moving in, do remember as an NRLA member you are eligible to receive a FREE TradePoint discount card, giving you 10% off many products at TradePoint.
Do
Remember that when a property is entirely occupied by students, then no council tax will be owed. This exemption only lasts as long as all the tenants in the property qualify as students. So if you have a HMO with five occupiers, and one of the tenants is a working young professional but the rest are students, then you would not qualify for the council tax exemption. Studies must be at least one full year of tuition, study or work experience at a recognised institution, and involve at least 21 hours study per week for at least 24 weeks in the academic or calendar year.
Do
Do get to know other student landlords. Make use of the NRLA’s regional meetings, currently online, courses and our members' forum to meet and share experiences with other student landlords. To register for an online regional meeting, browse our calendar here. We also have a brand new course, especially for student landlords. Currently an eClassroom option, our Lettings to Students course will take place on 24th November. It is a live, remote course delivered by an expert trainer.
Don’t
Forget to remind your tenants about the inventory and inspections. At the start of a tenancy it could also be useful to gently remind your tenants to complete the inventory you have provided them as soon as they can, and remind them about the frequency you are planning on carrying out inspections. The NRLA has several checklists for landlords to use when it comes to inspections, including our new mid-tenancy inspection template.
Don’t
Take a retainer. In years gone by, some students would half move into a property over the summer months. For example, they’d choose to store their gear in the property throughout July and August, but not actually start living there full time until their course starts. Some landlords historically charged tenants half the rent for these months, otherwise known as a 'retainer'. Under the Tenant Fees Act legislation, this is now a prohibited fee. Landlords are advised to remove these clauses from tenancy agreements immediately. Landlords may be able to offer an agreement to store the tenants goods for the summer months which would be compliant with the ban. But this absolutely must be separate to the tenancy agreement and it must be optional, in order for this to comply with the tenant fees ban.
Don’t
Don’t forget you must carry out Right to Rent checks on student tenants. This must be done before move-in day, and this is a requirement for all tenants over the age of eighteen. Right to Rent checks have changed slightly since the UK left the EU, and some can be completed online.
It is important to note that Right to Rent is only a requirement in England. To learn more about the checks and how to carry these out, read our handy guide for landlords.
Don’t
Don’t use the same key/s for the property for years. This is because you never quite know how many copies of keys have been made, and it is good practice anyway to change the locks on properties ahead of the start of each tenancy, for security, just as you would as a householder when moving into a new home. Remember in house shares, by law each bedroom door must be fitted with a thumb turn lock, and tenants must be able to lock the door from the inside of their room. You can learn more about this in our HMO Fundamentals eClassroom course.
Don’t
Lastly, don't forget to register for our webinar taking place on 1st December, covering the topic of student landlords. NRLA compliance specialist Dan Cumming will cover:
- How to start letting to students
- Potential licensing requirements
- Which tenancy types to consider
- How to deal with deposits and navigate the Tenant Fee Ban
- Managing student tenancies
This webinar is worth two CPD points, and you can register here.