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As this year's crop of successful A-level students celebrate their exam successes and look ahead to the next stage of their lives, student landlords might be pondering what this means for them. According to early press reports on A-level results day, universities and colleges had already confirmed the places of 425,830 students. Of these students, the majority had received acceptances from their first choice institution.

While many of the UK's higher education institutions have extensive accommodation options, students may run into at least three key problems.

First, the rapidly continuing expansion of higher education - even allowing for Covid - has left some universities and colleges struggling to keep pace with accommodation demands. In recent years, this has resulted in some students turning up at the start of term to find unfinished housing blocks and a spell in temporary accommodation.

Secondly, although - and perhaps partly because - university-owned accommodation has become increasingly expensive, many students are looking for alternatives in the private sector. This also includes some first-year students, who would traditionally have opted for university halls or self-catered flats.

Thirdly, many student areas are experiencing a supply problem in the private rental sector. The reasons for this include:

- rising interest rates, stalling sold property prices, and legislative changes that are pushing private landlords to sell up and leave the rental market altogether; and
- rising construction costs and the difficulties of hiring construction workers following the pandemic mean that many new developments are not being finished to schedule.

To add to these problems, some students may struggle to make the up-front payments many accommodation providers require or they may have difficulties finding a guarantor.

So, if you're a student landlord, what does all this mean for you? Are student lettings still a viable business and is there anything you can do to make securing a property easier for a student tenant?

Letting to students: the advantages

These are fairly obvious: demand for properties tends to be high (at least assuming you're not renting out something that looks like it belongs on "The Young Ones"), there's usually a constant supply of potential new tenants, and many of those tenants will want to stay for more than one year. Almost immediately, then, some of the time and cost inherent in finding new tenants is not a concern.

On the flip side, there are also a number of potential pitfalls for any student landlord. To avoid them, here are our five top tips.

1.      Make sure you choose the right neighbourhood.

It might be a generalisation, but the majority of students, especially undergraduates, want to live in a neighbourhood where other students live. This won't always be the locations with the most competitive sold property prices. Indeed, as you might expect, houses in the most popular student areas (for example, S10 in Sheffield, B16 and B29 in Birmingham, and NE2 in Newcastle upon Tune) often sell for more than comparable properties in neighbouring areas. On the flip side, the rental yields are often better too. Local lettings agents may be able to help you with more information about rental yields, especially if you're planning to ask them to manage your property. Alternatively, you can find pretty up-to-date rental yield indices online.

However, don't just look at the number of students currently making an area their home. Look, too, at proximity to the local universities (and teaching hospitals), transport links and nightlife.

Finally, when analysing a neighbourhood, don't forget to assess its safety. You can find out crime statistics on Police.uk, and local social media groups may also provide useful - if not necessarily substantiated - information.

2.      Learn about Houses of Multiple Occupation (HMOs)

If, like most student landlords, you're anticipating renting a property to three or more students from different households, you're entering HMO territory. Many HMOs require a licence from the local council. You can check if yours does by entering its postcode into the HMO licence page on the gov.uk website.

.       You'll have specific responsibilities if you're renting out an HMO. Many of these are as you would expect: for example, ensuring that the electrical wiring is safe, and that the property's structure and exterior is in good repair. Some might be more surprising, such as minimum bedroom sizes (6.5 square metres for a single person aged 10 or over, or 10.22 square metres for two people aged 10 or over). If you're renting out an HMO to five or more unrelated people, you'll have additional responsibilities, including the duty to ensure that the property is not overcrowded.

HMO licences are normally granted for five years but some councils may issue them for shorter periods. Failing to obtain an HMO is a serious matter that can see you issued with a rent repayment order, prosecution or a civil penalty of up to £30,000, and/or a banning order.

3.      Furnish the property appropriately

The vast majority of student tenants are looking for a furnished home. While you won't want to spend a fortune, you do need to adhere to current safety standards and ensure that each tenant has what they require: typically, a bed, a wardrobe and/or dresser, and a desk and chair. Communal areas should also be appropriately furnished, and this might also include a washing machine and even dishwasher. These might seem extravagances but can help in attracting tenants. If you're worried about the cost of repairing appliances, consider taking out specifically-tailored insurance policies.

4.      Take care with your tenancy agreement

If you're using a management agency, you can expect them to take responsibility for drawing up your agreement. If not, make sure you know what you're doing and be certain you've included the essentials: for example, when rental payments are due, what notice periods are required, and whether or not each tenant requires their own guarantor.

5.      Take out appropriate insurance

Your student let is obviously a valuable asset, and needs insuring as such. You may need a specialist policy, especially if yours is an HMO. However, even if it isn't, take care to check for wording that would exclude letting the property to students. If necessary, a broker can be a good source of advice.

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