Renting to International Students: Advice and Guidance for UK Landlords

New laws and increased taxation resulting in ever-decreasing profits are turning some landlords to a market that is proving to be very profitable: the student market. With an increasing number of overseas students looking for accommodation in London, landlords who let to international – and UK – students can expect some of the best yields compared to other tenants. 

Properties in Fulham, Paddington and Kensington are ideal for international students studying at universities such as Imperial College London, King’s College and London School of Economics. With around 24% of all UK students comprised of international students, there is a high demand for student properties. 

However, some landlords have concerns over letting to international students because of complexities around the right to rent checks and an inability to provide a UK based guarantor. Here we address these concerns, and other aspects of renting to international students, so landlords don’t miss out on this lucrative market. 

Right To Rent Checks For International Students 

It doesn’t matter who you let your property out to; the right to rent legislation requires landlords to verify that all tenants (aged 18 and over) can legally rent their residential property. Every new tenant must undergo the rigours of the right to rent checks – it is against the law to only check people you think are not British or Irish citizens. 

Since the UK exited Europe, EU citizens now need to apply for the right to rent in the UK through the EU settlement Scheme. 

You must ask tenants for original documents proving they can live in the UK. You must ensure these documents are genuine and take a copy (a legible photocopy or photograph) of each document for your records. Find more information on which documents are acceptable in a right to rent check on the gov.uk website. 

While checking unfamiliar passports may seem daunting, this is no reason to write off letting to internationals. You can use the government’s landlord’s checking service to ascertain whether the tenant has a right to rent. Also, here at Plaza Estates, we can undertake your tenant checks for you. 

International students can apply for a share code on the gov.uk website. To apply, they will need to provide their date of birth and one of the following documents: 

• Biometric residence permit 
• Biometric residence card 
• Passport or national identity card 

Once they have completed the quick process, they will receive a share code that the landlord can look up to ensure that the tenant has a right to rent. 

Want to find out more? Explore how to find corporate tenants and how to get good tenants.

What If The Student Has A Time-Limited Right To Rent? 

Some international students have a time-limited right to remain in the UK. If so, you must conduct the right to rent check no sooner than 28 days before the tenancy starts. The landlord must recheck that the student still has a right to rent once the time-limited date has passed. 

How Do I Protect My Income When Renting To International Students? 

Students are generally required to provide a guarantor when they rent a house. Almost anyone can be a guarantor, but it is usually a parent or relative. Landlords are often wary of international students as they cannot provide a guarantor based in the UK. 

It is challenging to check international students’ parents and complicated to take legal action against them should the rent not be paid. Instead, landlords can ask international students to pay a lump sum of six months’ rent at a time, which protects against the fear of rent arrears. 

Many landlords find this a non-issue as international students tend to pay their rent on time as they are worried about being unable to complete their course if they don’t. 

Some universities offer a university guarantor scheme, which requires international students to prove that they have no debts and demonstrate a good academic record. 

There may even be an option for students to apply for financial support through a grant or bursary to enable the student to pay rent in advance. 

How To Find International Students To Rent Your House? 

Landlords looking for international student tenants can contact local universities, as they often have a website page to support students looking to find accommodation. There are also property portals such as SpareRoom, StuRents and Accommodation for Students which all advertise to students. 

International students might be considering living in halls of residence or renting a room with a host family, so it is important to highlight how your property will be more suitable for students who can pay higher rent amounts. 

How Can I Let Property Effectively To International Students? 

In many aspects, overseas student requirements are the same as those from the UK, but there are some areas where international students’ needs differ. These include: 

1 No UK credit rating 

International students won’t have a UK credit rating, so you won’t be able to check this as part of the tenant screening process. This means they might struggle to get broadband, and utilities set up in their name. Many landlords choose to include these services in the rent payment to overcome this problem. 

2 Unfamiliarity with UK terms and conditions 

Newcomers to this country are used to different property arrangements, and students may not know how UK terms and conditions work. They might need to have things explained, such as their rights and responsibilities as tenants, and may need extra support settling into the property. 

3 Right to rent checks 

While it is a legal requirement to perform right to rent checks for all tenants, the process of checking immigration documents to confirm immigration status of international students can be more complicated. Landlords can use a letting agent to do the right to rent checks on their behalf. 

4 Referencing and guarantors 

When you request references or guarantors, it will be difficult for students who are new to the UK to provide UK based referees or guarantors. It can be challenging taking legal action against international guarantors, so landlords will generally only accept UK-based guarantors. 

Some landlords will ask for rent to be paid in advance for the full tenancy length. Alternatively, students can pay a UK guarantor company to act as their guarantor. 

Consider Providing Luxury Student Rentals 

The luxury student sector is a growing niche of the market. These students tend to be of Asian, American or Middle Eastern origin who come to the UK to study. They want to live in central London and be in an internationally recognised location. 

International students with more money to spend on accommodation might be looking for an apartment. So-called ‘luxury’ students tend to opt for new-build apartments in upmarket residential developments and can be happy to spend up to £5,000 a month for the right accommodation. 

But for this money, they will demand a very high standard of accommodation. The entertainment systems should be top of the range, the furnishings stylish and good quality, and free, high-speed WiFi is a must. Some students will expect a cleaning service to be included in the price.  

Want to know more? Take a look at the benefits of using a property management company and what to do if a tenant has a pet without permission.

They may also require an onsite gym, smart security systems and high-spec kitchen appliances. Another requirement will be a designated study space, with comfortable, ergonomic seating and preferably good views. 

Students will pay more for accommodation that is close to a university. But unlike young professionals, most students will want to be in shared accommodation, living close to amenities and night-time entertainment. Central London has all these things, but you may need advice on finding the right property or apartment. 

Renting Rooms To International Students 

If you are considering renting a spare room in your own property to international students, as opposed to renting out a full student property, this can be a great way to earn extra income.  

The Rent a Room Scheme allows a tax free threshold of up to £7,500 per year. To be eligible, the accommodation must be furnished and the property must be your main residence. You will still be required to perform right to rent checks and protect the tenant’s deposit. 

If you are wondering how to find international students to rent a room, you can get in touch with university accommodation offices to request that they advertise and recommend your spare room to international students. SpareRoom is another good place to advertise to students specifically looking to rent a spare room. 

Key Pieces Of Legislation To Follow 

As you are letting to sharing occupants not from the same family group, you must comply with Houses in Multiple Occupation (HMO) regulations. These regulations apply regardless of whether you are renting to international or UK students. 

If you rent your property as a house share, you must contact your local council to see if you need a license. The council is responsible for enforcing HMO standards and will stipulate the conditions of your license. You must: 

• Make sure that the house is suitable for the number of occupants 
• Conduct a gas safety check each year and provide certificates when requested 
• Install and maintain smoke and carbon dioxide alarms 
• Conduct electrical safety checks and portable appliance checks and provide certificates when requested 

You can read more about the required landlord safety checks in this detailed article. The council may have other conditions for your license and will inform you when you apply. Renting out an unlicensed HMO is an offence and can result in an unlimited fine. 

Feel Confident About Renting To International Students?

At Plaza Estates, we can carry out the right to rent checks, reference checks for guarantors, and advise you on applying for an HMO licence. Contact us today for more details about our services for landlords in central London areas including Camden and Paddington Basin. 

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