Landlords are concerned about letting their property investments to students due to the perceived damage that they could do to them, according to SPCE research.
New research from student lettings app SPCE revealed that seven out of 10 UK landlords refuse to let their properties to students, as they do not want to run the risk of them being damaged. However, Leon Ifayemi, CEO of SPCE, disagreed with this view. He explained: ‘With parents acting as guarantors, there’s a very low risk of students not being able to pay rent on time or provide compensation for damages. What’s more, students are also not deserving of lazy stereotypes of them as reckless party animals. They are far more conscientious than that.’
The survey covered over 2,000 UK adults and found that the relationship between students and landlords had disintegrated due to a lack of communication and trust. This had a detrimental effect on student welfare, with six out of 10 students revealing that securing a rental property was more stressful than studying for end of year exams or job hunting.
Two thirds of students claimed that poor communication with landlords was the key issue, whilst 70 per cent of students felt that accommodation in university towns was in poor condition.
According to research from the National Landlords Association (NLA), just 17 per cent of its members let properties to students. CEO Richard Lambert claimed that this is due to landlords seeing student accommodation as a specialist market.
He said: ‘While letting to students is not for everyone, those who do would be surprised by these findings, because student lets offer the highest rental yields and are least likely to experience rental arrears compared to other tenants, such as professionals, couples, or families.’
However, the general opinion was that positive landlord-tenant communication with students can improve the experience of both parties. This opens the high yielding market up to new potential investors.