Having student rentals in Birmingham is a significant advantage, especially if your property is near universities. Student rental can bring substantial returns. However, you have a few things to consider regarding student lettings. For instance, you should understand council taxes as well as landlord insurance.
Keep reading this guide to comprehend vital things to keep your student rentals on board.
- Tenancy agreements and policies
There are various terms and conditions of the lettings Birmingham that you and your tenants should sign before you give them the rental. In most cases, student landlords choose a joint tenancy that implies all students in the house must sign similar tenancy agreements.
This means every learner will be responsible for all costs. Therefore if one student refuses to pay the rent, the other will be liable. As a student landlord, ensure your tenants understand your policies before moving in.
- House in multiple occupations (HMOs)
Most student lettings Birmingham are HMOs, a property shared by three people from different households. This way, if your property is three storeys high and you let more than five tenants from other homes (who share facilities), it’s counted as a large HMO, and you must get a license.
However, you must prove that your house meets specific requirements to acquire your license. It takes time to process your license; thus, if you consider renting the property soon, ensure you book your application in advance.
- House furnishings
Most students only have a few pieces of furniture; therefore, you must rent them a fully furnished property. Ensure you have all essentials ready such as tables, chairs, and beds. Some students are careless therefore it is ideal you provide them with manuals to minimize damages.
After the move-in, take inventory of your belongings and ensure you and the tenants sign. If there are other items your tenants need to access, connect them with your letting agents, Selly Oak. Your letting agents can guide your tenants, thus avoiding any inconveniences while you are away.
While purchasing your landlord insurance, informing your insurer that you will let your property to students is excellent. If you already have the insurance and it’s the first time you are occupying student, contact the insurer and sign a new policy.
This is necessary since it is hard to claim if your insurer is unaware of your tenants. Remember your insurance covers only the rented item; thus, inform your tenants of their insurance policies. Student insurance policies cover a few of their items, such as laptops.
- Council taxes
All students are exempted from taxes, but they must have exemption papers from local councils that prove they are university learners. Ensure their certificates are valid from their universities. Remember that if you cannot verify that students occupied your house later, you must pay for all outstanding taxes.
If you have suitable student lettings, you can enjoy great returns annually. Additionally, good maintenance and excellent student relations will improve your reputation, thus standing out from your rivals. From the information above, change your strategies and consider improving the essential areas that will make you live nicely with students without issues.