What does plummeting student number mean for HMO landlords?

With the A level results coming out last week, Professor David Maguire of UEA has expressed his fear that the falling students numbers will affect universities including UEA adversely.

The vice chancellor or UEA, Professor David Maguire has revealed his fears for the higher education sector, warning there soon may not be enough students to keep universities financially sustainable.

This coupled with the new labour government confirming that it will not reverse the rule banning International Students from bringing their families means we should all expect students numbers to fall drastically.

This is a worrying sign for landlords who have always had flurry of waiting students wanting to rent their properties and willing to pay premium rent.

This calls for a change of strategy for anyone who rent to students and plan to continue renting to students but still has his property empty.

Here at Melanie Estates, we have been very innovative in our approach to the changing market dynamics.

Here are steps that student landlords can take to mitigate the impact of today's falling students numbers on your bottom line.

1. Raise the quality of your accommodation.

With the falling students number, it means the students will have a lot of properties to choose from, so why not entice them to choose yours by making sure your properties is the best of all the properties on the market? Decent sized rooms with en-suite has always been popular with students. Properties in close proximity or easy access to the University will always be popular.

2. Price to entice.

Setting the rental of your properties at a realistic level will make your property more appealing than that of landlords who ask for exorbitant rents. Make sure that you leverage on the experience of a local agent who is in touch with the market on a daily basis, taking and negotiating offers from students on properties like yours on daily basis. This will help you set your rent at the sweet spot for your property.

3. Leave no stone un-turned with your marketing.

If your property is still empty for the 2024/25 academic year or if you will soon start advertising for next academic year, you should make sure that your property has the best presentation and that you are marketing to International Students even before they arrive in Norwich, on a platform that they are familiar with in their home country as they are likely not to be looking on most UK platforms. Here at Melanie Estates, we will list your property on the WeChat platform attracting majority of the Asian students.

Below are some students properties we rented and the rent achieved.

4. Offer an experience to remember.

You can offer an awesome experience by making your accommodation move-in-ready for students by ensuring it's fully furnished with all essentials, have facilities that will allow students to sign the tenancy agreement electronically. If possible, add a break out area where students can switch off and relax.

5. Explore other markets.

With the falling number of students, have you considered if your property will be suitable for professional sharers as they pay rent similar to that of students? With the rising number of workers moving to Norwich, these category of tenants could close the gap on falling students numbers. Also, if your property is 3 or 4 bedroom,you can convert it back into a family accommodation. With the rising rent and families staying longer in rented properties when compared to students, you could offer your property to families at a slightly reduced rent but still achieve roughly the same net rent in the long run.

To find out more about our services or discuss how Melanie Estate can assist with your students properties, book a free 15 minutes slot with our Senior Property Manager, Abbie Matthews (CeLAP)