Why students make great tenants in London

Renting a property in London offers a chance to earn a consistent income and enjoy long-term benefits. While there is demand from different tenant groups, students make for an attractive profile as they are reliable and well-supported by parents and other institutions.

Particularly active from May to October, around the start of the new academic year, students from all over the world come to London to pursue their educational goals. Many of these overseas students are desperately looking for private accommodation, as there is limited availability on campus.

So, what makes this group of tenants stand out to London landlords?

Steady and predictable demand in select areas

According to the University of London Housing Services (ULHS), about 60% of the over 211,000 students at its colleges use private rentals. With nearly half a million students enrolled across higher education institutes in the UK capital, consistent demand is a key highlight for landlords who let specifically to students.

Even during holidays and semester breaks, student tenancies are usually in effect as bachelor’s and master’s programs run for two to three years, reducing the chances of void periods. Zone 1 buy-to-lets (BTLs) with quick links to top central London universities are the most favoured by students. We have many schemes near top London universities for landlords to take note of.

Attractive yields and upfront payments

When letting to students, many landlords opt for Houses in Multiple Occupation (HMOs) as they allow landlords to rent rooms individually and earn a better net rental income than renting to just one household. Most student rental agreements also require tenants to pay 6 to 12 months’ rent in advance, with either their parents or the university acting as a guarantor to safeguard rent payments.

A diverse student rental market

When it comes to housing for students, HMOs, shared houses, and purpose-built student accommodation (PBSAs) are some options landlords can consider.

HMOs – One of the most profitable ways to let in London, HMOs allow landlords to rent the same property with shared amenities to multiple tenants. While this method does increase profits, it requires mandatory licences and strict compliance.

Shared houses – Similar to an HMO, a shared house is rented to a group of friends or acquaintances under a single tenancy agreement, making it easier for the landlord to manage the property.

PBSA – These developments are specifically built for students and have many private landlords investing in them to avoid the hassle of managing and running the property themselves.

Only need to provide basic requirements

While there is a demand for premium rental homes among students, the majority are looking to save and will settle for homes where landlords take care of functional needs.

Close to campus – Should be within a 30-to-40-minute commute to the university.

Fast broadband – Students need high-speed Wi-Fi to for their academic work.

Student furniture – Study desks with built-in storage for books or assignments and a comfortable bed are appreciated.

Inclusive billing – Bundling up service charges like broadband, utilities, and even council taxes into the rent itself is a welcome convenience for students.

Communal areas for socialising – Many students are looking to grow their network or make friends during their term. Adding a communal area for socialising can be a USP.

How to make a property more student-friendly?

Students value their privacy and typically prefer minimal communication with their landlords. If you’re a landlord who wants to get into the student market, hiring a professional lettings and management agent for student rentals can be a good idea. Benham and Reeves provide a full range of services to help you get the most out of your rental property.

Inviting decor – When you rent out your property, looks matter. A neutral decor with nice lighting and furniture can make it look appealing right away.

Professional photography – Younger audiences shop for almost everything online, and having stunning property images for website listings and social media ads helps.

University tie-ups – Many universities have an approved accommodation list under schemes such as the National Code for Student Accommodation to ensure student safety and may also act as rent guarantors, creating an extra safety net for landlords.

Basic compliances – Before listing, make sure you have all boxes ticked on the compliance checklist, such as EPC checks, gas and safety certifications, and council-specific property licenses (HMO, Additional, or Selective).

Can Benham and Reeves assist with student rentals?

We have 21 branches across London to cover all the Boroughs within the city. Our property experts have years and decades of experience in lettings and management, enabling landlords to meet all tenant expectations while also staying on top of changing legislation. Whether it’s complying with local licensing laws or adapting to changes in the Renters’ Rights Bill, we can easily navigate through all the processes for our clients.