One in five landlords (19 per cent) say that rent arrears among students have increased this academic year when compared to last year, according to research from my|deposits.
However, the statistics do not seem to be putting landlords off letting to this particular market, as seven in ten (70 per cent) say they are optimistic about the future investment prospects for student lets.
All in all, about a quarter of landlords have property that they let to students.
The research, which shows that it takes an average of 18 days to repay outstanding rent, indicates the reasons for students falling into arrears are primarily down to mismanagement of funds (69 per cent) and increases in student fees (19 per cent).
And with the latter likely to have even further impact over the coming years, this could be an area of growing concern for landlords.
Eddie Hooker, CEO my|deposits said:
“It’s encouraging to see that landlords remain positive about the future investment prospects for the student lettings market.
“However, with planned increases to tuition fees just around the corner and tough times ahead for many students, it’s a concern for all that rent arrears seem to be on the rise”
With the new academic year just over a month away, the National Landlords Association is reminding landlords to focus on getting their tenancies in shape for the next wave of student lets.
Carolyn Uphill, NLA Director and University landlord commented:
“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 all members of the group attend the check-in meeting if possible and 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.”