According to new research by the National Landlord Association (NLA), which has looked into the student market in light of the upcoming new academic year, students are among the most reliable tenants.
It found students are the least likely tenants to not pay their rent, with only 38% of landlords letting to the group experiencing arrears in the past 12 months. Void periods are less frequent also, with just 30% of student landlords reporting empty properties in the last three months.
Student homes also tend to offer good returns, with the typical yield for these properties standing at 6.7%, compared to the 6.1% national average.
Carolyn Uphill, NLA chairman, commented; “It is encouraging to see such positive figures reported by landlords who let to students.”
The organisation found arrears are much more common among blue-collar workers and benefit tenants, with 59% and 71% of landlords reporting missed payments respectively.
It also revealed voids are more frequent for landlords who rent to families (40%) and older couples (49%).
While these figures suggest students are among the most desirable tenants in the private rental sector, Ms Uphill warned there are still challenges associated with the group.
“It can be very hard work and requires the investment of time as many of your tenants are living away from home for the first time,” she stated.
However, the NLA chairman added this level of dedication is what makes letting to students “so rewarding”.
A recent study by website Accommodation for Students found the average student rent has increased by 3.1% to £79.42 in 2013. It also revealed there is a growing divide between the north and south, with the typical cost in London standing at £129 per week compared to just £48 and £49 in places like Walsall and Stockton respectively.