While renting to a group of people who have just left home may not seem like a great idea to many would-be landlords, a new report by the National Landlords Association suggest they may be the ideal tenants.

The report found that only 38 per cent of student landlords encountered problems with rent arrears, a figure that rises to 59 per cent for landlords who rent to blue collar workers, and 71 per cent for landlords who rented to benefit recipients.

Student landlords also have less of a problem with vacant property; 30 per cent have had a vacant property in the last three months, notably less than landlords who rent to families (40 per cent) and to older couples (49 per cent).

The report also found that student tenants offered a better yield: 6.7 per cent compared to the British average of 6.1 per cent.
Becoming a student landlord can be a lucrative option for many, particularly those with children who require accommodation for their studies. But care should be taken to select a good location.

Alongside the more elite university towns and cities – such as Oxford, Cambridge and Edinburgh – there are great opportunities to be had in up-and-coming locations. Rents in Brighton, for instance, have increased by 21 .7 per cent over the last two years, while Bath has seen a rise of 12.7 per cent, and Bristol a rise of 7.7 per cent, over the same period.

But as many of our buy to let insurance customers understand, dealing with young people who have just left home can be a challenge – but one that may well pay off.

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