This is something that new investors often worry about when they think of renting out a beautifully refurbed property. Many (incorrectly) assume this is an even worse issue with students. In general, this is NOT AN ISSUE. Why? – Because there are many very significant protections we put in place (and so should you!) as well as the fact that students who pay a heavy premium to live in a beautiful property typically take good care of their home. Here is your formula for success to further ensure your beautiful property always remains…..beautiful!
1. Student HMOs should be on a single AST.
Why is this a great move: it means all tenants are accountable if any single tenant was to mess up. That means huge pressure from their friends in the house to keep it tidy.
2. The parents are all cosignors.
Why is this great: It means that if any single tenant does not pay their share or make a mess, all of the parents are accountable to pick up the bill (in addition to all of the remaining tenants/students). By accountable I mean legally/financially and they really do not want that hit on their credit ratings!
3. You have 5 weeks rent held as deposit
Why is this great: these houses are renting for over £3.5k/month for a 6 bed. 5 weeks rent is £4,375. A student would have to do a LOT of damage to require repairs that cost above that! Even a hole in the wall would only cost a couple of hundred pounds to fix. That is a lot of buffer you have there.
4. You rent premium locations located VERY close to the university
Why is this great: These students have intentionally selected your property because it is close to the school and not the pubs. Furthermore, they have chosen to pay a hefty premium for a nice place to live which typically means they value how nice it is. Basically….their priorities are where you want them to be!
5. You send notes to remind them of the mandatory required professional cleaning at the end of tenancy as stated in their contracts
Why is this great: it keeps cleanliness as a clear expectation and not a shock at the end of the tenancy when they are hit with a deduction on their deposits. It keeps the lines clear and everyone happy
6. You maintain regular check ins.
Why is this great: It reminds the tenants that you are keeping an eye on things and what you expect of them.
7. You set up options for regular professional cleaning of public spaces (for an additional fee):
Why is this great: nobody likes to clean someone else’s mess so it is a great way to share the load amongst the tenants. People always value their space more when it is tidy as well but they sometimes just need help getting it booked in. The cost is also minimal when it gets split 6 ways, etc. Making this an option for the tenants takes away this leg work and incentivizes them to utilise the service.
At Nouveau Living – we ensure properties are selected and developed with each of the above in mind as part of our sourcing and project management solution. We then maintain expectations and accountabilities as part of our superior HMO Management service. These are essential steps to ensure a thriving property investment.
