subject: Things To Remember When Letting To Students [print this page] With the new college and university academic years looming on the horizon just after what we hope will be a good summer residential landlords in some areas may well be considering whether they should be letting to the student population.
While this is likely to be something that those owning property in the more traditional centres of learning have already considered, growth in the number of new colleges and universities could mean that this is now an option for many more.
Letting to students is not necessarily totally straightforward, in that there are several months each year when they are down' and do not require accommodation. However, the summer months may offer the potential for redecoration and refurbishment, as well as finding new tenants, if the previous ones are moving on. In addition, many universities now run summer schools, so there could be a chance of short term lets during that period.
An additional appeal of letting in a university town is that there is a potential additional market in the young professional market; not just recent graduates, but researchers and young lecturers as well.
There are not likely to be any particular insurance conditions relating to property let to students, but it is important that landlords check that they have the right insurance policy; ordinary home insurance is unlikely to provide all the cover you will require and may even be invalidated if you fail to tell your insurance company that the premises are let.
Insurance for landlords should cover not just the buildings and any contents you may have in them, but also loss of rent and your legal liabilities towards tenants, employees (such as cleaners and maintenance staff) and third parties.
There are, however, additional risks that landlords should consider, such as the risk that a tenant will default on his or her rent and then refuse to vacate the premises. This can be costly to put right even if they do not physically damage the buildings but, fortunately, there is insurance that can be taken out to cover the legal costs involved. In some cases, this can even cover part of your lost rent.
While you are in no way responsible for your tenants' personal insurances, those letting to students in particular may wish to consider pointing out to them that they should have insurance for their personal effects, computers and legal liabilities. It is most unlikely that this will be included with their parents' insurance, as they have effectively left home, so offering them access to contents insurance through a reputable insurance broker could be an additional service you provide.
It is important to seek independent professional advice before making any decision about your landlords insurance policy and liability insurance as well as your financial obligations. You should always ask your insurance advisers what experience they have of dealing with residential and/or commercial rental property insurance.
