By Student landlords are in a really peculiar position. Assuming they had managed to let all their rooms at the beginning of the academic year they are sitting on a gold mine – but might be a temporary gold mine, possible about to change to a lead mine!
It’s currently a gold mine because they know that (generally) students have signed a long term contract, and the students’ income (their grants) will be paid in full for the rest of the academic year. So many landlords affected by Coronavirus will be casting coveting eyes at them.
Is it justified; should landlords be still charging students?
If the students have decided to remain in occupation, because they are continuing to study, albeit remotely; or they have vacated but have left goods in the property (expecting to return quickly) the landlord is quite justified to continue charging rents.
In the cases where the property has been completely vacated it is a more difficult question.
The contractual answer is Yes, they can continue charging. The moralistic answer is Maybe. Perhaps they should be negotiating with the students, after all the Government is keen to keep as many people in employment as possible, including the self-employed.
Does this keenness extend to landlords?
All landlords, including student landlords must take each case on its own merits. Is the student suffering extra financial strain because of Coronavirus; are they able to continue studying; are they intending to come back to study next year, and therefore be seeking affordable accommodation?
The ones who will be feeling the pinch is the plethora of specialised blocks going up to only accommodate students. Whilst they have many befits small landlords can’t offer (in-house cafés; recreation areas; etc) they have large overheads; promised dividends; and are (generally) only able to be used for one purpose – students.
Consequently they (tend) to charge high rents. Small student landlords should have the ability to undercut them, offering a friendlier service and more flexibility.
If you are a small landlord get in there, be proactive; market yourself as ‘smaller; friendlier’ and most importantly ‘far more cost effective’ than the big soulless blocks.
But above all remember two important things for student landlords:always have a Plan B if you can’t find any students (it is likely there will be a downturn in students next year); ensure all the students in your property will get on together. Meet them; interview them. So often the thought that a drinking buddy will also be a good fellow tenant turns to ashes, and the landlord has to sweep up the residue!
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