Landlord voice: Student lettings

How does an individual landlord compete against build to rent?

There is no doubt that increasing investment in the growing student housing market by institutional investors, the likes of the Unite Group plc, operating in 25 major UK towns and cities, brings serious competition for the small scale student landlord.

These large scale operators bring shiny new tower blocks with en-suite bathrooms, common room facilities and gyms – all sorts of additions that are attractive to those students who can afford the premium rents that go with this high spec level accommodation.

But this does not mean that there’s no room for the traditional small scale landlord offering clean, affordable accommodation in traditional housing stock, often converted for student living. They may not have en-suite facilities and gyms, but they do offer cosy private living for a small group of friends who prefer to live this way, and many do.

There will always be demand for this type of student living where students prefer to live in a privately rented house, which usually accommodates around four to six people. Students usually stay in university halls for the first year, after which, having made friends, they like to choose who they live with for their second and subsequent years. With the experience of living closely together, friendships made at this stage often last a lifetime.

Small scale living also offers more choice over where students choose to live. This may be a little further from the university campus, but the popular student areas of most university cities are served by good transport links, as well as lots of shops, laundries, bars and food outlets.

Landlords need to set the rent of the accommodation they are offering to make sure they hit a certain competitive price point, but nevertheless modern students have a minimum expectation of the facilities they require. In order to compete successfully against other small scale student landlords and the big build to rent operators, there are a number of essential features that students expect: Number one priority is usually a good, reliable broadband connection and Wi-Fi access.