There’s a common misconception that being a landlord is essentially generating a passive income stream. This isn’t true – in fact, being a landlord can be a full-time profession with a myriad of challenges and obstacles for individuals to overcome on a daily basis. This is especially true for student landlords, of which there is a growing number in the UK.
Here are some of the most common challenges facing landlords housing university students, and how getting comprehensive landlord insurance can protect them against any issues which could arise.
High turnover of tenants for student landlords
Student properties traditionally have a very high turnover of tenants, with the vast majority only staying in their rented accommodation for 9 months at a time (the duration of the academic year). There are many specific landlord insurance policies out there which offer cover for the time when the property will be uninhabited (usually around 90 days over the summer months). Some landlords also choose to rent the property out at discounted rates, rather than leaving it completely uninhabited.
Possibility of property damage
Student landlords can’t afford to be naïve about their tenants and their time at university. There are going to be times when tenants want to hold parties or invite friends over, and that has the potential to cause damage to their rented property. Having the appropriate landlord insurance means that accidental and malicious damage by tenants and guests will be covered, so it’s important to check that your policy is adequate in this area.
Non-payment of rent or bills
It’s never been harder to be a student in the UK, with maintenance grants and loans being removed, and rising costs of living all over the country. This means that the non-payment (or late payment) of rent and bills is a distinct possibility. Many student landlords ask for all of their tenants to provide a guarantor to cover this scenario – a guarantor is someone who will be legally responsible for any unpaid rent or bills if the tenant can’t come up with the money. Landlord insurance can also protect you from non-payment of rent, which is essential for those who rely on this as their own source of income.
Increased chance of theft or burglary
Properties situated in areas with high concentrations of students can be at increased risk of theft of burglary. Criminals know that student properties are likely to contain a huge number of valuable items, with smartphones, laptops, sound systems, games consoles and televisions among the most popular items that students take to university with them. Landlord contents insurance provides protection against violent or forcible entry – but it’s important to encourage students to take out their own contents insurance, too.
For further details about landlord insurance, get in touch with the team at Morpheus Insurance Solutions today.