Category: News

Property investors often find that they can achieve a higher rental yield with student accommodation than they can with a standard buy-to-let.

Of course, this isn’t always the case, and the success of a student let depends on a variety of factors including the type of property, the size of the property, and most importantly, the area that the accommodation is located in.

In this article, we will find out a little more about where the most profitable areas in the UK are for investing in student HMOs.

Factors to consider when choosing where to invest in student property

If you want to get the best returns on your investment you should think carefully about the best area in which to invest in a student HMO.

Of course, you’ll want to choose a university town or city. You’ll then need to research which areas within the city are student hotspots and what the reputation of each area is like.

Students usually live in inner city areas, preferably within walking distance of most places they need to get to, or somewhere with excellent transport links.

Most students want to live within walking distance of the university campus, local amenities, and nightlife.

It’s also a good idea to look to the future and research up-and-coming universities and student hotspots where demand could be set to grow.

For example, Bolton is a relatively small university town and house prices in the area are low, but Bolton university is one of the fastest-growing higher education institutions in the UK and it is targeted to double its student population over the coming years.

Which are the best areas of the UK to invest in student property?

It is generally agreed that when investing in any type of buy-to-let, higher rental yields can usually be achieved on properties located in the North of England because of how much cheaper property is to invest in up north.

Property Wire recently published an article about research that was carried out by Paragon Bank into the top 10 locations in the UK for investing in student property based on the areas where investors generate the highest rental yields.

The research found that the top 10 locations are:

1. Swansea

Average property price: £194,758

Rental yield: 9.56%

• Hull

Average property price: £119,538

Rental yield: 8.60%

• Plymouth

Average property price: £267,287

Rental yield: 8.41%

• Liverpool

Average property price: £225,178

Rental yield: 8.25%

• Coventry

Average property price: £290,685

Rental yield: 7.91%

• Chester

Average property price: £281,796

Rental yield: 7.88%

• Stoke

Average property price: £119,773

Rental yield: 8.21%

• Lincoln

Average property price: £217,615

Rental yield: 7.82%

• Preston

Average property price: £252,850

Rental yield: 8.01%

1. Leeds

Average property price: £250,009

Rental yield: 7.62%

Interestingly, as well as the majority of the areas being in the North of the country, most of them are also within smaller university towns and cities. Most of the areas listed are home to just one university and have smaller student populations than you would find in major cities.

However, one major city with multiple universities which consistently appears in lists of the top areas for investing in student property is Liverpool.

Some reasons why these smaller university towns and cities are outperforming major cities include because there is less property available in the area, property prices are lower, and there is less competition between investors. All these points could help to drive up the rental yield that can be achieved on the property.

Are student HMOs a good investment?

Student Haus is part of the Mistoria Group, and we are a team of letting agents that specialise in HMO student property letting and management in the North West of England, particularly in popular university towns and cities like Liverpool, Manchester, and Salford.

We have found that investor enquiries for student accommodation in Liverpool, Salford and Bolton have surged over the last six months, up 21 per cent from UK and international investors.

More and more investors are now investing in student HMOs and profiting from higher rental yields as a result.

Mish Liyanage, managing director of the Mistoria Group, explains: “Without doubt, investors achieve considerably higher yields with property let to students, compared to those let to non-students in the same town or city. 

“For example, student landlords in Liverpool made an average gross rental yield of 13 per cent in the third quarter of 2021, compared to nine per cent for those who did not let to students. Student property can either be similar to a normal buy-to-let, where the whole property is rented between friends who co-habit or a student HMO where students rent each room individually on their own tenancy agreement. A property is deemed an HMO if at least three tenants live there, forming one household and sharing bathroom or kitchen facilities. 

“Investors can currently acquire a four-bed HMO for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £175,000 in Liverpool.

“Investing in student HMO accommodation offers a long-term  option, as the property is highly likely to be in constant demand throughout the calendar year.”

Demand for student properties to rent in the UK only looks set to grow as the country remains a very popular location to study with overseas students. According to UCAS, applications from international students are expected to increase by almost 26 per cent by 2026.

Here at Student Haus, our team of specialist letting agents works with property investors across the North West of England including Salford, Liverpool, & Bolton.

We offer a range of services for student landlords including a let-only service and a fully managed service.

If you require help or advice with investing in a student HMO, don’t hesitate to get in touch with our team of specialists by calling us on 0161 694 6427.

As a student landlord, one of the best things you can do to provide yourself with financial and legal protection is to take your time creating appropriate tenancy agreements for your student lets.

A student tenancy agreement is a legal contract between you and your tenants. It should set out the terms of the tenancy, making the rights and responsibilities of you, the landlord, and your tenants, clear from the start.

A comprehensive and suitable tenancy agreement is essential to a successful student let.

In this article, we will explain more about the different types of student tenancy agreements and how to create one for your rented student accommodation.

What are the different types of student contracts available?

There are a couple of different types of student tenancy contracts to choose from. The most appropriate one for you depends on the property type, and your tenant’s circumstances.

Your standard student tenancy agreement is almost always an assured shorthold tenancy (AST) agreement.

The two main types of student contracts are individual contracts and joint tenancy agreements.

Individual tenancy agreements

With an individual tenancy agreement, the tenant named on the contract is liable solely for their own payments, deposit, and actions. This type of contract should be used if your student property is an HMO.

Joint tenancy agreements

Joint tenancy agreements start and end on the same date and mean that all tenants within a house share joint liability for the property and payments. Joint agreements can sometimes offer landlords better protection because it means that if one tenant stops paying their rent, the others are responsible for finding the money due.

How do student tenancy agreements work?

Most student tenancy agreements are fixed-term, assured shorthold tenancies.

If a contract is ‘fixed-term’ it means that the landlord and tenant have agreed that the tenancy will last for a set period. For students, this is usually 12 months. During that time, the tenant cannot be asked to leave the property unless the terms of the agreement have been broken.

Assured shorthold tenancies give the tenants exclusive possession of the property. This means the landlord should not visit the property unless they have given the tenants at least 24 hours’ notice that they plan to do so.

Student tenants with a fixed-term assured shorthold tenancy cannot be evicted unless their landlord can prove to the court that they have a legal reason to do so. If the landlord believes that they have a legal reason to evict a tenant, then they must first serve them notice of possession. However, if you include a break clause in the contract, you can still end a tenancy early if you wish, providing you stick to the terms of the break clause, (more on those later).

When creating a student contract for the first time it’s best to use a template or consult a specialist in student property letting, to ensure that your tenancy agreement covers all bases.

At a minimum, your contract should include legal terms and conditions surrounding the start and end date of the contract, rental costs, how and when payments should be made, the security deposit, and who is responsible for paying the bills.

If you require help with your student tenancy agreement, get in touch with our team of specialist student letting agents here at Student Haus and we’ll be happy to help. Our professional let-only and fully managed landlord services are popular with student landlords throughout the North West, including those based in popular university cities like Liverpool, Manchester, and Salford.

Which rental contract should you choose?

The type of tenancy agreement that you choose, is down to the property type you have and your preference, there are pros and cons of both joint and sole tenancy agreements. If your student property is an HMO then you should provide each tenant with their own individual tenancy agreement.

Many landlords swear by joint tenancy agreements because they feel they offer them better financial protection. By making all tenants jointly responsible for the property and payments, if one tenant stops paying rent it is the whole group that is responsible for the costs. If one tenant wishes to leave a joint tenancy, then the remaining tenants are responsible for finding a replacement tenant or sharing out the additional cost between them.

On the other hand, some landlords find that individual tenancies are more profitable because they can charge more per room. Not only that, if tenants wish to start and end their contracts on different dates, then sole tenancy agreements allow them to do so. This allows landlords to provide tenants with greater flexibility but can also be more complicated to manage.

What should I know about break clauses in my student tenancy agreement?

Whether or not you include a break clause in the contract is up to you; there are advantages and disadvantages to doing so.

A break clause gives both landlord and tenant the option to give notice and end a tenancy early if necessary. Usually, the break clause specifies a date after which the tenancy can be ended.

Break clauses can be useful as they give landlord and tenant flexibility but bear in mind that some tenants may view them as a less secure option and be put off. Equally, if your tenants choose to activate the break clause, you may lose revenue if you cannot fill the room and it is left empty for a while.

If you do choose to include a break clause, you should specify when the break clause can be used, how much notice should be given when using it, and how notice should be served.

For further help or advice with renting to students, get in touch with our team of specialist student letting agents here at Student Haus, we have helped countless student landlords throughout Liverpool, Bolton, Manchester, Salford, and the North West to operate highly profitable and stress-free student lets.

Get in touch by calling us on 0161 694 6427 or emailing info@student-haus.com

Looking for a place to live at uni can be exciting, but before you rush into signing a tenancy agreement there’s a few things you should check.

If you want to make an informed decision when choosing a student house to rent, make sure you go to property viewings prepared with a list of questions to ask.

In this article, we’ve come up with a list of 10 to think about when viewing student accommodation to ensure you don’t end up with any nasty surprises.

10 most important questions to ask when viewing student accommodation

1. Is the tenancy agreement a sole or joint agreement?

Student tenancy agreements are either joint agreements or sole agreements. A joint tenancy agreement makes all tenants jointly liable for the property and rent payments. That means that if one tenant stops paying, the others are responsible for ensuring their payments are covered. With a sole tenancy agreement, each tenant has their own contract and is liable for their own payments and actions only.

• How much is the deposit and which deposit scheme is used?

Before moving into a student property, you are usually required to pay a deposit. The deposit provides the landlord with some financial security if you stop paying rent or damage the property. Deposits are usually equal to about one month’s rent and landlords are required by law to pay your deposit into a government-approved tenancy deposit scheme.

• Are bills included?

Always check what bills (if any) are included in the price of your rent. If bills are not included then you will need to arrange and pay for all your utilities, television licence, and internet separately.

When you rent from Student Haus, you have peace of mind that the price of all our student accommodation is inclusive of all bills and internet, making it easier for you to budget and saving you the hassle of having to communicate with lots of different service providers.

• What are the tenants’ responsibilities?

Some landlords ask more of their student tenants than others. Asking this question may reveal any additional responsibilities contained within the tenancy agreement. Some common additional responsibilities include things like requesting that tenants maintain the garden and mow the lawn, asking student tenants to pay for the property to be professionally cleaned at the end of the tenancy agreement, or allowing the landlord to inspect the property regularly.

• Are tenants required to pay rent over the summer months?

Most student tenancy agreements run for a fixed term of 12 months, which means you will end up paying for your student property throughout the university holidays. This may or may not be a good thing, depending on your circumstances and where you plan to spend your holidays. Some landlords may be prepared to be flexible with your contract length, so it’s always worth asking the question.

• What furniture and appliances are included?

Don’t automatically assume that the items you see in the house when you view it are there to stay. Sometimes when viewing a property, some of the furniture you see may belong to existing or previous student tenants.

• Is there car parking or bike storage?

Not everyone will require a car parking space or bike storage, but if you do plan to drive or cycle whilst at university then this could be a real deal breaker. Even if you don’t drive, having a car parking space available can be very useful for visitors. Some city centre areas may even require you to pay extra for a parking space, so asking the question during a viewing can save you from incurring an unexpected cost later down the line.

• What Energy Performance Rating does the property have?

Finding out how the house is heated and what its Energy Performance Rating is, is more important than ever with energy prices and the cost of living being as high as they are, particularly if bills are not included in the price of rent. Ask if you can see the property’s Energy Performance Certificate to check its rating. A rating between A – C is reasonable, anything much lower and the property may have insulation problems and could be a little cold or difficult to heat in the winter.

• How are phone signal and wi-fi strength?

A good wi-fi connection and phone signal are both essential for most students. Asking the question can reveal any known problems in the area.

• What security does the house have?

Crime rates can be higher than average in some student areas, so security systems like burglar alarms and security lights can be a real bonus, but unfortunately aren’t that common in student accommodation. Check if the doors are secure, the type of locks they have, and whether individual bedrooms can also be locked.

For further help or advice on finding a student property to rent in North West England, including Liverpool, Manchester, Bolton and Salford, get in touch with our team of student letting agents here at Student Haus by calling us on 0161 694 6427.

As a student landlord, you are obliged by law to adhere to rules and regulations that ensure your student accommodation is safe and the service you provide to tenants is fair.

In this article, we look at some of the key rules and regulations surrounding student accommodation and student letting.

What is a student house?

Most students spend their first year at university living in halls of residence, which are often found on the university campus.

Afterwards, many students move on to cheaper off-campus student accommodation.

While there are several different types of private student accommodation to choose from, the most common type is student houses owned by private landlords.

Most landlords letting a house to students are required to apply for a house in multiple occupation (HMO) licence.

This is required if the student house is going to be shared by three or more tenants from different households.

What responsibilities are imposed by law on a student landlord?

Listed below are what we believe to be some of the most important responsibilities of student landlords.

Ensure the property is fire safe

It is a landlord’s responsibility to ensure that their student accommodation is safe and free from hazards. This includes ensuring the property meets all relevant fire safety regulations. Student houses should be fitted with smoke alarms on every floor and all furniture and furnishings should be fire safe. Larger HMOs should also be equipped with a fire extinguisher.

Arrange regular safety checks for gas appliances and electrical equipment

It is the landlord’s responsibility to arrange for gas appliances and boilers to be serviced annually by a Gas Safe registered engineer. The property’s electrical system should also be checked for safety by a professional once every five years. Landlords should provide their tenants with a copy of the valid Electrical Installation Condition Report (EICR) and Gas Safety certificate when they first move into the property.

Use a government-approved deposit scheme

Most landlords take a deposit at the start of a tenancy to give them some financial protection if the tenant causes damage to the property or misses rent payments. The Housing Act 2004 states that landlords must place tenant deposits into a government-approved tenancy deposit scheme (TDP) within 30 days of receiving it. The landlord is also obliged to provide the tenant with the details of the scheme that their deposit is in.

Register with the ICO

Landlords are required to obtain their tenant’s personal details and keep them on file. This requirement classes them as a ‘data controller’ which means they must ensure that they are following the principles of GDPR (general data protection regulation) and register with the Information Commissioner’s Office.

Perform right-to-rent checks

All landlords, regardless of whether they let to students or not, must carry out a right-to-rent check on all new tenancies. This involves asking to see the relevant identity documents that prove the tenant’s right to rent. Student landlords should also ask to see a letter from the tenant’s university confirming their registration with the university and place on a course. Landlords should make a copy of the documentation that they see to keep on file.

Carry out property repairs and maintenance

It is the landlord’s responsibility to carry out any repairs to the property’s structure, pipes, wiring, heating, hot water, and bathroom fixtures. Repairs and maintenance should be carried out as soon as possible, particularly if they pose a threat to the tenant’s health, security, or well-being.

Provide tenants with notice before visiting

Landlords are obliged to always provide student tenants with at least 24 hours’ notice if they plan to visit the property for any reason and should not show up unannounced.

How can Student Haus help with student tenancies?

Student lets can be lucrative, but they are also subject to more complex rules and regulations than regular buy-to-lets.

If you require any help or advice getting set up as a student landlord or running your student let, particularly if you have never been a landlord before, you could benefit from the student landlord services that we offer here at Student Haus.

We offer a let-only or a fully managed service, allowing landlords to choose a level of support that suits their requirements and budget.

We have already helped numerous student landlords throughout North West towns and cities including Liverpool, Salford, and Bolton to get the best returns from their investments.

For further information about any of our services or advice about landlord regulations, give our team a call on 0161 694 6427.

Landlords should make sure they’re aware of the rules surrounding who pays council tax for rented student accommodation before they draw up a tenancy agreement.

Whether or not council tax needs to be paid on a property that is being let to students, and who is responsible for paying the bill if there is one, depends on several factors.

In this article, we will explore the council tax exemption rules and whether the responsibility to pay the bill falls with the tenant or student landlord.

Are students exempt from council tax?

In most cases, full-time students are exempt from paying council tax while part-time students are still required to pay it.

If a student house is only occupied by full-time students, then the property is exempt from council tax.

If there is a mixture of students and non-students living in a property, then the students are still exempt and the bill goes to the non-student/s.

The following people are exempt from paying council tax:

• Full-time students
• People aged under 25 who are enrolled on a government training scheme
• People aged under 20 who are studying a course up to A-levels
• Student nurses
• Those employed in an apprenticeship and earning less than £195 per week

To be classified as a full-time student you must be on a course that is at least a year long and requires at least 21 hours of study each week.

If you are a part-time student rather than a full-time one, then it is likely that you will need to pay council tax. However, you may be able to get a discount; check the government website to see if you are eligible for one.

The exemption is only applicable while all tenants qualify. As soon as a student’s studies end, they will be liable for council tax.

Who should pay council tax?

Whether the responsibility to pay the council tax bill falls with the student or landlord depends on whether the property is an HMO (house of multiple occupancies).

Any students who are liable to pay council tax and have a sole tenancy, or a joint tenancy, will need to arrange to pay the bill themselves.

However, it is the landlord who should arrange to pay any amounts owed for council tax if the property in question is an HMO and students each have an individual tenancy agreement.

Usually, if this is the case, the landlord factors the cost of the council tax into the rental price.

Landlord responsibilities for council tax

As well as being responsible for paying the council tax bill for student HMOs, landlords must also pay council tax for the property during any period where the property is empty with no one living in it.

For further help or advice for student landlords, don’t hesitate to get in touch with the team of specialist student letting agents at Student Haus by calling us on 0161 694 6427.

Moving into student digs for the first time can feel exciting and terrifying in equal measure.

As well as doing all your own cooking and cleaning, you’ll also need to handle it if something goes wrong with the property that you’re living in.

This may involve communicating with your landlord and making sure that you are well-informed about your rights as a tenant.

In this article, we identify five of the most important tenancy rights every student should know about.

Your landlord must provide you with notice before they visit

It’s every student’s worst nightmare.

You’ve hosted a party the night before and now you’re in your pyjamas eating leftover pizza while cramming for tomorrow’s exam when there’s a sharp rap on the door… it’s your landlord.

The good news is that, legally, you shouldn’t have to deal with this scenario unless the property is on fire, or there is some similar emergency, at which time you’d probably be relieved for a bit of help.

Your landlord should always give you notice of at least 24 hours if they are going to be visiting the property, providing you with a bit of time to tidy up!

Gas and electrical safety

It is your landlord’s responsibility to ensure that your student property is safe and free from hazards. This includes ensuring that all gas appliances and electrical equipment have been professionally checked and approved as safe.

Gas appliances should be serviced annually by a Gas Safe registered engineer and a copy of the gas safety certificate should be provided to you when you first move into the accommodation. The electrics in the property should be inspected once every five years.

Eviction

No student should ever have to worry about being wrongfully evicted. If you are paying your rent and behaving yourself then your landlord cannot legally ask you to leave.

Student landlords can only legally evict you for one of the following reasons:

• You’re at least two months late paying your rent
• You are breaching the terms of your student tenancy agreement
• You are using the property for illegal purposes
• You are being a serious nuisance to neighbours
• You have let the property fall into an unacceptable state

Tenancy Deposit Protection (TDP) scheme

When your landlord takes your student tenancy deposit, they are legally obliged to put it into a government-approved Tenancy Deposit Protection scheme.

Your deposit should be put into a TDP scheme within 30 days of you handing it over to your landlord and they should provide you with information about which scheme it is in.

Repairs to the property      

While you can’t be calling your landlord in to change the lightbulb, they are required to arrange for any major repairs required as quickly as possible.

This includes repairs to the property’s structure, pipes, wiring, heating and hot water, and bathroom fixtures.

If you cause any damage to the property or its contents, accidentally or otherwise, then you may be required to arrange for this to be fixed yourself.

Here at Student Haus, our team of letting agents helps students across the North West find student lets from reliable student landlords in popular university cities including Bolton, Salford, and Liverpool.

For further help finding student accommodation or advice surrounding tenant rights, give our team a call on 0161 694 6427.

If you own property in a university city, there will always be demand for rooms to let for students.

Finding student tenants is usually simple, and charging rent per room rather than per property can be profitable. However, before you get started, should familiarise yourself with your responsibilities as a student landlord.

Follow the steps below to get set up and begin letting to students.

Prepare the room for your new tenant – Before your tenant moves in, you should perform basic maintenance and cleaning of the room to ensure that it is safe, comfortable, and meets all relevant regulations. Most student accommodation should be furnished with all the basics a student needs to live comfortably, including a bed, mattress, wardrobe, drawers, desk, and chair.

Find tenants – Finding a tenant for student lets isn’t tricky, providing you know where to look. Get your room advertised on as many student accommodation search engines as you can, ensuring that the pictures you use to advertise the room are clear and attractive; professional photos work best.

Tenant screening process – All landlords and lettings agents should carry out tenant screening before they let a room to a student. The screening process helps to protect your property and financial security as it checks whether potential tenants are responsible and their financial status.

Some of the checks that you should make during the tenant screening process include:

• Check their right-to-rent and live in the UK
• Credit check
• Employment and earnings check
• Check they are registered on a course at university
• Reference checks

Agree on payment terms – Make sure that you have discussed payment terms with your tenant and that they are happy with how the rent is to be paid. Rent may be paid weekly, monthly, at the start of each term, or even in full up-front, depending on you and your tenant’s circumstances and preferences. Make sure they are fully aware of the terms surrounding any interest that will be charged on late or missed payments.

Draw up a tenancy agreement – Once you have found a tenant you will need them to sign a tenancy agreement. This is a legal contract between landlord and tenant that contains important information about each party’s responsibilities and legal obligations.

Collect tenant deposit – Most landlords take a deposit equal to the value of 4-6 weeks’ rent from each tenant to provide them with some financial protection if the tenant misses rent payments or causes damage to the property. This deposit must be paid into a government-authorised tenant deposit protection scheme.

Hand over the keys – Finally, it’s time to meet your new tenant on the move-in date and hand over the keys to their new room, good luck!

Need help with any of or all the above?

Here at Student Haus, our team of student letting agents provides a comprehensive range of letting services for student landlords, including a let-only service and our popular fully managed service.

For further help or advice with renting to students, give our team a call on 0161 694 6427 or email us on info@student-haus.com