Across the UK, almost one fifth of landlords (19%) report that their rent arrears among student tenants have increased this academic year (2012) compared to the last year.
According to research completed by the ‘My Deposits’ website and figures taken from BDRC Landlord Research, it currently takes an average of 18 days to reclaim any outstanding rent fees, with the two main reasons given for the failure to pay being: Mismanagement of money (69%), and ˜Increased Student fees (19%)…
That said, the raw statistics do not seem to be discouraging landlords from letting their properties into to this particular sector of the market “ As much as 70% of landlords in the student lets industry claim that they are planning to continue to do so, and are even optimistic about the future. Looking across the UK as a whole, the potential size of this market is clear, with about 25% of all landlords featuring a student let within their portfolio.
As a landlord considering letting your property to students within Norfolk, this trend can be concerning at first glance as the CEO of My Deposits commented recently:
..with planned increases to tuition fees just around the corner and tough times ahead for many students, its a concern for all that rent arrears seem to be on the rise
The National Landlords Association suggests that by taking action towards the beginning of the tenancy agreement, landlords can work to help reverse this trend. They remind landlords to focus on the cleanliness and key amineties of their properties in preparation for the next wave of student lettings. The NLA Director mentioned:
How landlords manage the start of a tenancy can have a real impact on their tenants customer experience and their business as a whole so the check-in meeting is a vital part of this process. It is important that¦ landlords are contactable for any early questions or problems, as this will save a lot of hassle in the long term and help to avoid a dispute occurring at the end of the tenancy.
The theory here being that as the initial meeting is likely to be the longest period that the landlord spends with the students, there are real links to be made at this key stage which will ensure that the rest of the working relationship works. With the total number of students enrolling at The University Of Norfolk alone in 2011 being over 15,000, the potential is there for a happy partnership in the future.