Students have been named as the best tenants in a report surveying landlords and letting agents across the country.
The report by Glide, a utilities and service provider for students, in co-operation with Accommodation for Students found that 69% of landlords and letting agents prefer letting to students than non-students; a figure which is consistent across all regions in the UK apart from London.
There were a number of reasons for this preference, with 76% of landlords and letting agents citing better rental yields as a key plus point. They also believe students make the best tenants because of positive factors within the market which are not available from other tenant markets, such as the rent being guaranteed by parents or guardians (45.6%) and the fact that there is an annual market for students (53.7%). The small minority who disagree that students make the best tenants appeared to be those who either own HMOs or manage their own property. This is shown by the fact that the main challenges identified by landlords were the cost of maintaining a HMO (76.5%) and the fact students are more time consuming than letting to non-students (53.7%). This emphasises the view of many experts that purpose-built student accommodation with on-site management services is the most hands-off and stress-free option for investors.
However, the positivity across the board was so strong that just 3.7% of those surveyed reported experiencing no benefit with letting to students.
Also, if you consider all of those surveyed, not just landlords and letting agents, 84% agreed that students make good tenants, reflecting the high level of confidence amongst the general public in letting to students.
Richard Price, head of Business Development for Glide, commented: “There is a lot of confidence in the student market. Gone are the days where student digs equals sub-standard. The truth is, students make great tenants – they’re in constant supply and have guaranteed means to pay rent.”