Research has shown that private landlords have seen a worrying increase in rent arrears among students over the last academic year. The situation is expected to get even worse as hikes in student fees the coming term will leave most students with even less money to pay the rent.
However, the research from Mydeposits, a Government authorised tenancy deposit protection scheme, also shows that seven in ten landlords are optimistic about future investment prospects for student lets, and 25% expect to be adding a student property to their buy to let property insurance policy in the next 12 months. The research found that it took an average of 18 days for a student to pay their outstanding rent, and students fell into arrears mainly because of their mismanagement of funds (69%) rather than the ever increasing student fees (19%). However, these statistics will change this autumn when student fees rise to a maximum of £9,000 a year. Experts are encouraged to see that private landlords are positive about the future for the student lettings market with many willing to work with the students who have tough times ahead.
With the new academic year just over four weeks away, the NLA (National Landlords Association) are reminding private landlords to focus on getting their properties in shape for the next wave of student arrivals. Carolyn Uphill, NLA director said: “How landlords manage the start of a tenancy can have a real impact on their tenants’ customer experience and their business as a whole, so the check-in meeting is a vital part of this process. It is important that all members of the group attend the check-in meeting if possible and that landlords are contactable for any early questions or problems, as this will save a lot of hassle in the long term and help to avoid a dispute occurring at the end of the tenancy.”