Insurance Statistics Prove Students Are The Best Tenants
A survey carried out by the National Landlords Association (NLA) in 2013 found that students are some of the best tenant types housed in the PRS as they are less likely to miss rent and student properties tend to offer better returns.
Now, fresh research by Total Landlord Insurance in 2014 also shows that students are the most reliable tenants in the private rented sector (PRS) as only 9.6% of insurance claims come from student properties, the second lowest of any tenant group, so there may be something to the claims after all, who would have thought?
The average insurance claim made by the landlord of a student property was £2,090.18 (GBP) in 2013, compared to £6,072.97 (GBP) for a typical residential property housing tenants claiming state benefits. Students usually occupy student houses of multiple occupation (student HMO’s) for nine months of the year and often have their parents acting as their guarantors meaning any unpaid rent is normally covered before they move out, giving landlords the summer months to carry out necessary maintenance work for returning and new students. Having the student’s parents as guarantors can also be beneficial; when it comes to paying for property repairs as well, allowing problems to be resolved without the need for the landlord to have to make an insurance claim. Other landlords, housing different tenant types, may not get the opportunity to do repairs and maintenance as frequently.
Students have more to worry about these days other than excessive drinking and causing a nuisance, they are smart enough to realise that they have to look after where they live and student behaviour has certainly come a long way since the student stereotype was first formed.
Student HMO’s are a fantastic income producing asset and produce a great return on investment (ROI) for property investors and landlords.
If you would like to learn more about student HMO property or multi let properties please click here
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