There are many university towns and cities across the UK where there is a high demand for student housing. Letting your property to student tenants can produce attractive yields for landlords willing to take on the additional responsibility it brings.
A student let is a property that is rented out to a number of students at the same time. More often than not, these property lets will be larger properties where the bedrooms are rented out individually, and there are shared facilities such as living room, bathrooms and shared communal areas. Student houses are often conveniently located within short walking distance from the university campus.
There are many benefits to having student tenants—they tend to stay for 12 months, competition tends to be strong, and the properties can have high earning potential. Student houses can, however, attract a higher level of risk—for example, the property may be left unoccupied outside of term time. Also, student lets are typically fully furnished to cater for each occupant, but students may not spend money on maintenance at the end of their tenancy, which can be an extra cost to factor in as a landlord of a student house.
Running a multiple occupancy property for students will mean you need to have appropriate levels of cover in your landlord insurance policy. As you are likely to be renting out to multiple tenants within the same property, you may need to consider the rules around houses in multiple occupation (HMO) as they often require a licence from the local council. HMOs may also undergo frequent checks to ensure you are staying compliant with the regulations.
In terms of covers available, you may want to consider:
You can insure a single student let or multiple properties under the same policy. You can add and remove properties to suit your rental business.
It could be worthwhile discussing your rental property with us to ensure you are getting appropriate levels of cover in your landlord insurance policy. If you operate a portfolio of student housing, it is worth calling us to discuss your requirements in more detail, as you may wish to opt for property insurance that covers all of your properties under the same policy.
At Gallagher, we have a dedicated team of insurance advisors available to take your call and chat through your requirements. We already insure many property owners, so we can work with our panel of insurance providers to find you suitable covers.
*Provided by Premium Credit Limited subject to credit check. Policy limits and exclusions may apply. Please see the policy wording for full terms and conditions.
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