Renting to students

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    Renting to students

    Hi,

    I have been letting for a quite a while and i find myself in a bit of a difficult situation, i would love some guidance on this.

    Everyone knows students are looking around now for a summer rental that will last 1 academic year.

    The students are keen to take the place but only want to take the place in JUNE.

    I have taken the one week holding deposit.

    I am struggling to figure out when to collect the rest of the deposit, do you take the deposit once the tenancy agreements are signed which would be say in April (after the reference checks are done etc). Or do you have to take the full tenancy deposit when the tenants first move into the property? Or am i not allowed to do either. Some guidance would really help!

    The difficulty is, that if you do not take the full tenancy deposit once the TA's are signed then they can definitely cancel the contract, putting us in a difficult scenario (yes they will lose 1 week holding, but they won't lose 3 months worth of rent - like we would).

    Thanks!

    #2
    Have a quick read of....
    https://england.shelter.org.uk/legal...p_with_costs#1

    I think taking rent & deposit any earlier than a week or so before the start of tenancy is dangerous, particularly as deposit has to be protected within 30 days of being paid.

    Appreciate many agents think otherwise
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Like HMO properties, student lets (which may be an HMO) are not the easiest to manage.

      The fact that you are asking such a basic question suggests you aren't properly experienced nor trained to handle this.

      Don't forget, your average student is going to be well equipped and have endless peer support to runs rings around you if you aren't 100% organised.

      Personally, I cannot see the benefit in purposely leaving a property empty for a month just to attract tenants who are likely to move in and out at their whim.



      My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

      Comment


        #4
        The property has a HMO license already. I have always let the property with individual people and run it correctly as a HMO.

        As it is a now a student property with 5 individuals and all regulations for the HMO have been met, I prefer to now give them 1AST as opposed to 5 individual tenancies when they are all friends and are happy to take the house as a group of friends. (The contracts etc stipulates no more than 5 people are allowed to reside in this property).

        Thank you artful dodger for your response.

        We have only taken 1 week (holding deposit) for now which is correct. If i'm not mistaken there isn't much guidance on when to take a full deposit, even after looking deep into the textbooks which i've got.

        (even if the tenants move in & out at their whim, i personally don't think they will). I'm not sure when to take the full deposit, protection of the deposit is not the issue.

        I'm not too sure but my logic is that once the tenancy contract has been signed it is now legally binding and therefore its correct to take the full deposit and protect it giving the tenants their particulars and all legal documents.

        Comment


          #5
          Lodger not Dodger. I don't dodge.

          Once signed an AST is a binding CONTRACT but is not a TENANCY until occupation started.

          Deposit is not even required. Becoming quite common with some landlords.
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


            #6
            I assume that you are talking about the students taking the whole property? If not, and it will be mixed with some students and some non-students, you are likely to have issues around Council Tax in that students are exempt and won't want to pay a rent that is inclusive of a share of CT.

            I would suggest you join the NRLA as they have various checklists that will help you get the order and timing right.

            Comment

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