Will the increase in tuition fees affect Student Tenant Arrears?
With university tuition fees set to increase, to up to £9,000 per year, from the upcoming term starting in September, many landlords are worried about whether this will have an affect on students being able to keep up with their rent payments.
Research from Mydeposits reveals that around a quarter of the landlords they spoke to have a property which is currently let to student tenants. Almost 20% of landlords have reported an increase in rent arrears from student tenants over the past academic year, before the student fee increase.
However with students obtaining loans to take care of the fees which are paid directly to the university rather than to the student, it has been shown that the main reason, stated in 69% of cases of student tenant arrears, is that individuals are failing to pay their rent because of mismanagement of funds such as maintenance loans rather than tuition fees.
The average time it takes to pay off student tenant arrears is 18 days according to the research but 70% of landlords are still optimistic about the student letting market and future investments.
Eddie Hooker, CEO of Mydeposits, 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."
Using an agent to deal with Student Tenant Arrears
Using a letting agent for rent collection can take much of the stress away from having to deal with student tenant arrears, if any arrears arise, they should have a system in place to deal with this and receive the payment as soon as possible.
Walton Robinson has a dedicated member of staff who checks our student tenant arrears regularly to ensure we keep on top of any payment problems or arrears that may occur and have a well tested system to get the arrears paid as soon as possible. This service is included in the full management service and is also available as an option of the tenant find plus service.
To find out more about Walton Robinson's rent collection or full management service call us now on 0191 243 1000 or email firstname.lastname@example.org.