Student Let Advice

Adly812

This year I purchased my first buy to let which is a student pod within a hall of accommodations for students. It has lots of restrictions within letting, The main one is only to students. The service fees are quite high, but it was a great little investment.. until coronavirus happened. Now that the universities are shut, most students are asking for refunds or payment holidays. 

I am very happy to allow a refund if my tenant goes home. But I feel if they are living inside the flat still, rent should still be paid, as it’s not like my bills get a holiday?

as a landlord is there any information out there that can help us. As most literature is for the tenants benefits.

Comms69

What is your question? (apart from wanting a resource) - this forums generally can answer most queries

need_an_answer

up to you really...
some LLs are offering discounts and some are not.
I have a student offspring who quite clearly has a LL who wants his final term rent and it will be funded in part by the student loan payment that the student gets in a few weeks even though they are now back at home.
What if any guidance has the uni given...ours gave LLs the advice to be lenient if possible...but as I  know that has fallen on deaf ears for some

I am also a LL but not to student accommodation and have taken the view that I  will try to be flexible to my tenants should they ask for some clarification on their forward rent payments

greatcrested

What is the contract between you and the student? Without knowing this, how can we advise?

Whether you choose to refund rent paid, or permit a payment holiday (either defered paymet or permenant) in contrast to what the contract requires, is up to you.

Likewise, what you choose to do if the tenant builds up arrears (whether in occupation or not) is also up to you, though of course the government has made it impossible to evict a tenant within 3 months. Arrears, of course, can be claimed separately from evicion via the courts(if they are sitting) if that's the way you choose to go.

For alternative sources of information, doubtless your Landlords Association can assist, or one of the dedicated landlord forums.

Adly812

The agents are recommending to - Release students from their AST contract and don’t collect rental for next Term and refund those who have paid in advance for next term.

I am totally in agreement that if the student is not in situ, that I don’t expect them to pay for the next term. 

I am not permitted to lease it out to anyone who is not a student, so getting it rented again won’t be possible.

The student block is pretty much fully managed and serviced by the management team and all guidelines of cleaning etc has been taken care if during this time. 

But holding my tenant liable for rent whilst they’re in situ is what I think of the situation ? Would this be a fair approach in others opinions ?  It seems trends are offering refunds or payment holidays?

 

tom9980

Student pod investments usually have high fees they more often than not turn out to be terrible investments.

The only relief you should think about giving is extra time to pay.

anselld

If the student wants to stay in the property then it is fair to expect rent to be paid as normal.  

The agent suggestion to "release from AST" does not imply that they can stay rent free.  Release from AST means they can terminate their contract and vacate the property.  It must be by mutual agreement so if they don't want to vacate then the contract continues.

Remember the agent works for you.  Give them clear instructions on what to do.

Adly812

tom9980 said:

Student pod investments usually have high fees they more often than not turn out to be terrible investments.

The only relief you should think about giving is extra time to pay.

Thank you I am sad to hear this. I was aware of the high fees, and taking it into account I would be making a profit roughly of £150 pm. Until coronavirus happened lol.

its had 100% occupancy since built. But now the universities are closed, it is such a worrying moment for this pod of mine. 

Comms69

Smb3088 said:

tom9980 said:

Student pod investments usually have high fees they more often than not turn out to be terrible investments.

The only relief you should think about giving is extra time to pay.

Thank you I am sad to hear this. I was aware of the high fees, and taking it into account I would be making a profit roughly of £150 pm. Until coronavirus happened lol.

its had 100% occupancy since built. But now the universities are closed, it is such a worrying moment for this pod of mine. 

 I assume that's pretax, so £120 a month. £4 a day? And you invested how much? 

Freecall

I think that this is being made somewhat over-complicated.

The OP has 2 options :

1. Insist on payment against the AST either from the tenant or their guarantor (perhaps with extra time)

2. Let the tenant off their obligations and take the hit.

Other factors such as the wisdom of investing in one of these schemes in the first place are somewhat academic now. 

need_an_answer

Is your tenant likely to remain in situ...many are not