Students are at the top of the class as Britain’s most reliable renters, according to a new study.
Not only are students more likely to pay their rent on time, but their landlords also earn a better return on investing in homes for them to rent.
The observations come from research by the National Landlords Association (NLA).
The NLA found that fewer students (38%) have had recent rent arrears than other types of tenant.
The average for blue collar workers was (59%), while for tenants on benefits; the average was much higher – hitting 71%.
Landlords renting to students also had their properties standing empty for a shorter time during the past three months. The voids were 30%, compared to 40% for families and 49% for older couples.
Yields, or return on investment, average a gross of 6.7% a year for student landlords, compared with an average 6.1% for other property investors.
The survey also revealed that the best yields were in the cities with the most reputable higher education institutions.
The exception is London, where high property values push down yields despite students paying higher rents.
Carolyn Uphill, NLA chairman, said: “It is encouraging to see such positive figures reported by landlords who let to students. However, it is important to highlight that letting property to students, indeed letting to any tenant group, is not an easy win. As a student landlord, I know that it can be hard work and requires the investment of time as many of your tenants are living away from home for the first time. It is this dedication to the relationship that makes letting to students so rewarding.
“As with all tenancies, it’s important to establish a good, professional relationship from the start. It is also essential that you set out fair terms in your tenancy agreement and that both landlord and tenant fully understand their obligations throughout the tenancy.”