There are some landlords out there who shudder when they hear the term ‘student tenant’ but most landlords understand the reasons why an HMO of students is a wise choice. Students often get a bad rap, but you’d be surprised how responsible student tenants can be, given the chance. Offering a clean HMO that is up to date on repairs and maintenance can give student tenants a home that they’ll want to take care of.
The first and foremost reason why landlords like to rent to students is because student lets generally lead to better yields. When you can rent all of the bedrooms in your house separately then you’re going to bring in more income. One might argue that renting a shared accommodation to young professionals would also lead to a higher yield and that is true, to an extent. Young professionals are just starting out in their working life and, chances are, they won’t be living in a shared accommodation for long – leaving you with having to find, once again, new tenants. They also are a bit more picky about the furnishings of their HMO. So you might find yourself having to invest more money into your property to bring it up to par for professionals.
Students, on the other hand, are not so picky. They will make the space their own with items brought from home as well as items purchased in their wanderings around Liverpool. Aesthetics are not as important to them as they are to young professionals.
You will always have a huge market of tenants as there are new students every year and students stick around for the years they are in university and may even stay after they are finished school and starting their new career.
Students often have the financial support of parents or family and as such, rent tends to get paid promptly. Oftentimes, one student will bring in the rest of your tenants as their friends and schoolmates are also looking for somewhere to live. Of course, as the landlord or letting agency (which is highly recommended to use) you will have the power to vet their potential tenants with the thought in mind that there might be less friction with tenants who are friends already and have worked out any tensions that may arise in a shared accommodation.