Undoubtedly, HMO landlords have found the last few years quite volatile. A raft of legal changes, regulations, and instability in the rental market means some are leaving the industry for good. However, there are other options to consider. Rather than leave or convert the HMO to a family home, have you thought about renting it out to students?

Pro: Students Are Reliable

Missed rental payments, defaults, and evictions are much lower among students than the general population. There are two reasons for this. The first is students are (despite popular belief) conscientious. They want to be seen as reliable and responsible. The second is how student lets work. With little to no credit history or income, students require a guarantor such as their parents.

Pro: Students are Not Demanding

Students are not fussy when it comes to décor. They are not looking for a dream home, just a comfortable place that is clean, reasonably well kept and value for money. So long as they have a secure furnished home and a reliable internet connection, little else matters. Older properties are usually ideal. You can fit more people in a large property. Students will appreciate the extra space to store all their stuff.

Pro: A Constant Stream of Willing Tenants

The student property market will never dry up. Most universities expand rather than contract. Price wars are rare because demand is so stable. Landlords of student properties report plenty of demand, fast take-up time (although there is a short window) and fast replacement of students who leave courses.

Con: Furnished Property

If your property presently has no furnishings, you will need to fill out the property which can be an expensive initial investment. Understandably, teenage students don’t own beds, wardrobes or sofas, though they might own their own TVs. There is also the problem with potential damage which could see more replacement and repair than with normal furnished properties.

Con: Purpose-Built Property

One of the growing issues of concern for landlords in the student sector is the number of private communities. Built by universities, they offer mod cons and security as well as a communal aspect. Traditional owners will not necessarily go out of business, but it will require that you keep on top of the market changes. Offer value for money and don’t let the property get run down.

Con: Grief from the neighbours

If your property is in an area that hasn’t traditionally had students, the culture shock could upset current neighbours. While the stereotype of hard partying and drinking isn’t as true as it once was, students do stay up late and make a lot of noise. A party in the middle of the week that keeps working neighbours awake may provide you with complaints you never previously experienced.