Landlords Warned that Student Rent Arrears could Worsen

10 August 2012 Categories: News

Landlords Warned that Student Rent Arrears could Worsen

With student fees climbing to an average £9,000 per year this September, landlords have been warned that student rent arrears could become a significant problem, especially considering they were already on the rise during the last academic year. Recent research conducted by Mydeposits found that nearly one in five landlords questioned had experienced student rental arrears during the previous 12 months, and that the average waiting period for late payments was 18 days.

Saying this, the same research also found that 70% of landlords remain optimistic about the investment potential of student accommodation, and that over a quarter of those questioned already rented property to students.

When asked about the results of the research, Mydeposits CEO, Eddie Hooker said, “It’s encouraging to see that landlords remain positive about the future investment prospects for the student lettings market. However, with planned increases to tuition fees just around the corner and tough times ahead for many students, it’s a concern for all that rent arrears seem to be on the rise.”

Carolyn Uphill, Director of the National Landlords Association recently reminded student landlords about the importance of a healthy tenancy from the start, saying “How landlords manage the start of a tenancy can have a real impact on their tenants’ customer experience and their business as a whole.”