Industry News
The best way to avoid pitfalls when renting to students
are often taking their first steps away from home. However, recent advances in technology are helping landlords overcome the hurdles associated with renting to students. Many students are discovering independence
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for the first time buy they are also digital natives – looking for convenience and accessibility in all areas of life at all times via their smartphone or tablet. The answer for landlords looking to avoid the common drawbacks with renting while appealing to the lucrative student rental market, could lie with PropTech. Here are some of the common pitfalls that
landlords come across when renting to students and how technological innovation is helping to alleviate these issues.
Communications One of the biggest obstacles to a positive landlord-student renter relationship is poor communication. Landlords especially can spend a lot of time feeling they are being ignored or not being taken seriously by their young renters. The rise of mobile applications dedicated for
the property market has opened the possibility of a direct line of communication between property owners and students – enabling them to connect at anytime, anywhere via in-built chat features. A rental tenancy should be a long-term
relationship, rather than a one-night stand. It starts before any contract is signed and can continue after the tenancy has officially ended. There needs to be a positive and respectful relationship based on open and transparent communication to avoid any nastiness during the process. Utilising messenger applications, which can be
referred back to during the course of the relationship, helps establish a good rapport between landlord and student renter and creates a transparent environment where all concerns and issues can be raised in good faith. A number of PropTech applications also enable
both landlords and student renters to track the progress of a tenancy from start to finish using sophisticated predictive data analytics software. Again, this can greatly contribute towards creating a positive relationship between all parties.
Sorting deposits Another huge point of contention is around rent deposits for property, when trying to secure a deposit at the start or at the end, when deciding to return it in full or use all or part of it to cover any damage costs. As most chat features save historical messages,
in effect documenting all correspondence, both parties are empowered to refer to previous conversations at any time. For example, if a
andlords face a number of pitfalls when renting property and these can be magnified when renting to students who
student claims they raised the issue of a broken appliance previously but the landlord has no record of this, then they can dispute the claim and have grounds to not give the entire deposit back. With many PropTech platforms moving to
provide profiles and rating systems for student renters and property owners, a much greater level of accountability is being established on all sides. In the long-run, this should lead to fewer people trying to take advantage of the system and ultimately the issues surrounding deposits will become a thing of the past.
New tenants For many private landlords, finding new tenants can be a long and expensive process. The student housing market is very competitive due to an imbalance in high student numbers but limited property availability and a tight schedule. Latest technological innovations in the
property industry means that the process of bringing new tenants in has become more streamlined. Automation of archaic processes means that historically lengthy procedures such as validating guarantors or placing deposits in secure schemes can be done in just a few taps. Say, for example, if a student had a pre-approved guarantor, a landlord could confirm their tenancy in a property in a matter of minutes. Sophisticated PropTech applications are also
allowing landlords to manage properties across a wider geographical area than before. Previously they were tied to their immediate geographical location in order to be available to provide support for renters directly or through an agent. Now, with real-time video messaging services and 24/7 communications, landlords can expand their base and ultimately their portfolio. A few PropTech companies are even starting to
experiment with Virtual Reality, integrating it into their live platforms. In theory, a potential student renter could ‘view’ a property without physically being there or requiring the landlord or property manager to be there either. This means a huge number of potential tenants could view a single property at the same time, greatly increasing the landlord’s chances of securing new tenants quickly as well as saving time and money. There will always be issues that arise when
renting to anyone, never mind students. However, through integrating smart, technological solutions, these hurdles can be overcome. Ultimately, technology is an enabler for positive change and from improving communication to helping landlords onboard more tenants, it will greatly help overcome the pitfalls of renting to students.
This article was written and submitted by Leon Ifayemi, CEO of SPCE
8 | HMM July 2017 |
www.housingmmonline.co.uk
Rent cap could lock young renters out of SE market
Government plans to cap housing benefits at Local Housing Allowance (LHA) levels would lock 84 per cent of young people under 35 out of all housing options in London and the South East. This grim warning has been made by
researchers at Sheffield Hallam University in a report ‘Capping aspiration: the millennial housing challenge’ carried out for the Consortium of Associations in the South East (CASE). Benefits are due to be capped from April
2019 and its impact is expected to be felt most by those in low-paid, insecure jobs. Jobseekers aged under 25 would then have, on average, just £2.79 a week to live on after rent. Those on low and middle incomes would also be affected.
”The report identified that 51 per cent of people aged under 35 already cannot afford the region’s cheapest private rents, a proportion that rises to 76 per cent for those aged under 25”
The report identified that 51 per cent of
people aged under 35 already cannot afford the region’s cheapest private rents, a proportion that rises to 76 per cent for those aged under 25. CASE members say the Government
should reconsider using the shared accommodation rate as the maximum level for housing benefit for under-35s. Instead, it should give associations and
local authorities the freedoms and flexibilities to continue to meet the housing needs of this group, the report said. Ann Santry, chief executive of Sovereign
Housing Association and chair of CASE, said “The shared accommodation rate, along with the constraints placed on housing associations and local authorities, is putting even social housing, which is supposed to be there when we need it most, out of reach for this group.”
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