"Landlords can reassure tenants amidst the financial uncertainty by making sure their tenants know where the financial responsibility lies"
Landlords could end up missing out on a collective £320 million next university term, as 60% of students reconsider their tenancy and contemplate moving out of their student accommodation due to the cost-of-living crisis, according to analysis from specialist insurer Adrian Flux.
Students say landlords need to act, with 76% believing that rent should be lowered to ensure they are able to extend their tenancy agreements.
Other actions tenants think landlords can do to ensure they renew their tenancy include the tenancy being all-inclusive of bills, low or no deposits, discounts provided based on referrals, greater flexibility with ending the tenancy, and ensuring properties are energy efficient.
Rising costs mean that students are growing increasingly concerned over bills and other expenses, and are now more worried about affording utility bills than they are food. In the new study of 1,000 UK students, 66% said that paying for water, gas and electric were their biggest cost consideration compared to 40% who claimed it was paying for the weekly food shop.
Furthermore, Netflix or Amazon Prime are low priority for students as costs such as commuting, and internet are ranked higher in financial consideration. And bills are clearly a growing concern for young people keen on further education as additional costs for tenants’ insurance (13%), parking permits (17%) and the TV licence (18%) are factored, with these also polling above entertainment subscription services.
Chelsea Shakespeare, a manager within the household team at Adrian Flux, said: “Landlords can reassure tenants amidst the financial uncertainty by making sure their tenants know where the financial responsibility lies, and that they (landlords) have adequate insurance, as well as inform students what happens if there is an emergency. This will alleviate any concerns around related unexpected costs that might arise during a tenancy so students can budget accordingly.
"And in case of the worst, we recommend landlords review their policies and consider cover for all eventualities including rent guarantee, unoccupied periods (such as during change of tenancy and half terms), and legal expenses should disputes arise.”
