Student Landlord Insurance – What are the risks?
Non-stop drunken parties and non-existent cleaning allowing mould, mildew, and worse, to fester – students have a reputation for trashing digs.
Of course, not all students live up to this destructive reputation, but some landlords still prefer to state ‘no-students’ anyway. As a result, they are missing out on a lucrative source of income, which can yield much higher and more dependable returns than other rentals.
Instead, open your doors to students and take out the right sort of insurance to protect your property. That way, if one of your tenants does live up to the bad reputation, you’ll be covered financially.
Do students deserve the bad reputation anyway?
Not all students are beer-swilling party animals who have never lifted a cleaning product. The rising levels of tuition fees and competitive work-marketplace after graduation means that students are studying harder than ever, and spending less time at the student’s union. Whilst the horror stories of students trashing houses will probably always be with us, it’s definitely the exception to the rule, not the norm.
The deposit
The deposit is there to serve as an incentive to your tenant to look after your property or help cover you for damages caused if you do end up with a tenant who acts like the stereotype-student. According to Save the Student, in 2016, having enough money was a concern for 80% of students. This can be a reassurance to landlords that they’ll be keen to get back as much of their deposit as possible and will do all they can to keep your property clean and in good condition.
And, according to UCAS, over 430,000 students in the UK now come from overseas. Without a UK-based guarantor, overseas students will pay out a lump sum of six months rent in advance, giving you a significant amount of the annual rent for added peace of mind.
Make your property work harder
Many professional landlords who rent to students transform their properties into a House of Multiple Occupancy (HMO). That means you can rent out each room individually and often make more money than if you just rented the entire house to a couple or family. You will need an HMO licence from the local council, which varies in cost, but lasts five years.
There’s also a growing trend for luxury student accommodation, which is particularly popular with students from the USA and the Middle East, who are prepared to pay for high-quality accommodation close to their college. Collegiate AC is a rental firm specialising in this luxury market, with studios costing over £21,000 a year to rent in south London sold out!
Choosing the right student landlord insurance
Renting out a property to students needs specialist insurance cover – a normal domestic buildings and contents product won’t do. Landlord insurance for student lets can include protection from:
- Non-payment of rent
- Malicious damage to buildings and contents
- Accidental damage
- Damage caused by burst pipes or other failings
- Legal expenses – to cover costs if you need to pursue a claim through the court
With a wide range of options to protect your asset and limit hassle, speak to an expert student landlord insurance broker like Park Insurance. We have over 20 years experience handling landlord insurance and can help guide you towards the best value for money premium without leaving your asset exposed to risk.
Whether you’re a professional landlord or are simply looking to rent out your home whilst you are living somewhere else, we will use our close relationships with some of the UK’s biggest providers to get you a cost-effective deal.
Get in touch now to find out more.