How to become a successful student accommodation landlord

The student accommodation market offers some of the best opportunities for landlords in the UK today. With consistent demand, attractive yields, and predictable tenancy cycles, student lettings can be a profitable venture. But the market is changing. The Renters Rights Act, which comes into force on 1 May 2026, will fundamentally reshape how student tenancies work. For landlords who understand the new rules and adapt their approach, this represents not a threat but an opportunity to professionalise their operations and build sustainable, rewarding portfolios.

This guide covers everything you need to know to succeed as a student accommodation landlord in 2026 and beyond, from understanding the regulatory landscape to building relationships with tenants that last.

Understanding the student accommodation market in 2026

There is a continuing shortage of available accommodation for students, with Purpose-Built Student Accommodation (PBSA) development falling well behind target. Demand remains strong across university cities, and landlords who can deliver quality accommodation with professional management will find themselves in an advantageous position.

The student market is not monolithic. First-year students typically gravitate towards university halls or PBSA. Second and third-year undergraduates, along with postgraduates, seek shared houses or HMOs close to campus. Final-year students and international students often prefer self-contained flats or studios that offer more independence. Understanding which segment you're serving helps you tailor your property and your approach.

Why student accommodation can be lucrative

Student lets, particularly HMOs, tend to generate higher rental income than traditional single-family lets. Research from Paragon bank shows yields for student property provided by private landlords of seven to nine per cent in locations with quality universities such as a Russell Group institution, significantly above the UK average for standard buy to lets.

The predictable tenancy cycle is another advantage. Most student tenancies run from September to June or July, allowing landlords to plan maintenance and marketing activities during the summer months. Students also typically provide guarantors (often parents or guardians), which adds an extra layer of financial security.

The Renters Rights Act - What student landlords must know

The Renters Rights Act received Royal Assent on 27 October 2025 and the Government has announced that the Act will be implemented in phases from 1 May 2026. This legislation will have profound implications for how you manage student accommodation.

Key changes affecting student landlords

Abolition of fixed-term tenancies - Fixed-term ASTs are being abolished from 1 May 2026. All new student lets will be open-ended periodic tenancies, meaning student landlords can no longer rely on a 12-month term to guarantee the property comes back in time for the next academic year. Instead, tenancies will run month to month.

End of Section 21 evictions - Section 21 is also gone which means the familiar "no-fault" eviction route disappears. Every repossession now requires a statutory ground, which usually means a court process backed by documentary evidence.

Tenant notice periods - Once the Renters Rights Act comes into force on 1 May 2026, a tenant will be able to terminate their contract by serving at least 2 months' notice to quit on their landlord at any time. For joint tenancies, one tenant giving notice ends the tenancy for everyone.

Ground 4A - The student exception - The Government has agreed an exception to this for students. Landlords will be able to give a notice to require students to leave the property at the end of the academic year. This will be known as a Ground 4A notice. However, this only applies in specific circumstances.

Ban on rent in advance - Traditionally, student landlords take in rent payments in advance when students receive their grant monies. Now under the RRA there are limits on advance rent. Monthly payments will increasingly become the default, though guarantors remain permitted.

Who is exempt and who isn't

Not all student accommodation will be affected equally. The exemptions are complex and worth understanding carefully.

University-owned accommodation - University-owned student accommodation remains outside the scope of the Housing Act 1988 and will continue to be exempt under the Renters Rights Act. Universities can continue to offer fixed-term tenancies.

Purpose-Built Student Accommodation (PBSA) - For new tenancies, qualifying PBSA landlords benefit from an exemption to the Housing Act 1988, brought in by the RRA. This means they can grant common law tenancies rather than assured periodic tenancies (APTs) under the new regime. However, this exemption only applies if the accommodation is let or managed by a member of a government-approved student housing management code of practice, such as the ANUK or Unipol codes.

Private HMOs and houses - Most private student landlords will not be eligible for the PBSA exemption. This will only apply to students living in an HMO (house in multiple occupation). It does not apply to tenancies let to one or two students or families. If you're letting a standard house or flat to students, you'll be subject to the full Renters Rights Act regime.

Ground 4A explained

For private HMO landlords, Ground 4A provides a crucial tool to manage academic year turnover. The ground allows you to give notice requiring students to leave between 1 June and 30 September each year, provided specific conditions are met.

The catch - it will also only apply if the landlord has given the student a written statement of their wish to rely on Ground 4A and the tenancy has not been entered into more than 6 months before the tenancy start date. This means you cannot pressure students to sign tenancies extremely early, which was previously common practice.

The notice must be given four months in advance and must specify a date when you want the students to move out. For existing tenancies in place on 1 May 2026, the landlord will have to give the student a written statement on or before 31 May 2026 and the 6-month restriction will not apply.

Setting up for success - Property and compliance

Choosing the right property

Proximity to Campus is ideal - walking distance or easy public transport access. Properties with three or more bedrooms can accommodate groups. A decent-sized living room or kitchen makes the property more appealing. Fast Internet is considered an essential utility.

HMO minimum room size standards are non-negotiable. Single-occupancy rooms must have a minimum floor space of 6.51 square metres, whilst double-occupancy rooms must have a floor space of at least 10.22 square metres. If any part of the room has a ceiling height of less than 1.5 metres, it cannot be included in the floor space calculation.

Understanding HMO licensing requirements

In England and Wales, a property becomes an HMO if it is occupied by three or more people who form more than one household and who share amenities such as a kitchen or bathroom. Most student houses fall into this category.

The licensing requirements vary by location. In England and Wales, for example, landlords may not need to acquire an HMO licence for properties with less than five tenants living in them. Conversely, in Scotland and Northern Ireland, a licence is required for HMOs of any kind, including those with just three tenants living in them.

Many local authorities have additional licensing schemes that apply to smaller HMOs. Check with your local council's private housing team to understand your obligations. Failing to obtain the necessary licence can have serious consequences. Councils are empowered to issue civil penalties of up to £30,000 per offence.

Fire safety and compliance standards

Fire safety is one of the most important aspects of HMO management. All tenants must have clear escape routes out of the building and have fire doors on bedrooms, kitchens and living rooms. A smoke alarm has to be installed in every room of the property.

For HMOs, you'll need a mains-powered, central fire alarm system, emergency lighting on each floor, and a fire extinguisher on each floor with a fire blanket in the kitchen. Smoke and carbon monoxide alarms must be tested at the end of each tenancy.

Beyond fire safety, you'll need current certificates for gas safety, electrical safety (EICR), and an Energy Performance Certificate (EPC). Keep these documents organised and readily accessible. Tools like August allow you to store all compliance documents in one place and set reminders for renewal dates.

Furnishing and equipping student properties

Most student rentals in the UK are let fully furnished. This usually includes beds, mattresses, wardrobes, desks, and chairs in each bedroom. In communal areas, provide sofas, dining tables and chairs, and basic kitchen equipment including a cooker, fridge-freezer, microwave, kettle, and toaster.

The key is durability over style. Invest in durable, low-maintenance furniture and avoid anything too expensive or difficult to replace. Students are generally harder on properties than professional tenants, so choose items that can withstand wear and tear.

Internet connectivity cannot be overlooked. Fast, reliable broadband is as important to students as running water. If you can provide this as part of the rent (bills-inclusive arrangements are common in the student market), you remove a significant hassle for tenants and make your property more attractive.

Marketing and tenant selection

Timing your marketing

Student letting cycles are predictable but intense. Most students begin searching for next year's accommodation between November and February, with peak activity in January and February. By Easter, much of the best stock has gone.

Get ahead of this cycle by refreshing your property listing in late autumn. Take high-quality photographs in good daylight, highlighting the features students value - bedroom space, desk areas, kitchen facilities, outdoor space if available, and proximity to campus or transport links.

Where to advertise

Work with your local university accommodation office. Most will provide guidelines or codes of practice that landlords need to adhere to in order to be recommended to students and it's well worth making sure you meet these requirements. The university should then be able to help you market your property to students.

Online portals like Rightmove, SpareRoom, and specialist student accommodation sites are effective. Social media, particularly Facebook groups for specific universities, can connect you directly with students searching for housing.

Tenant selection and referencing

Always conduct thorough referencing on every tenant. It's crucial that reference and right to rent checks are made on every tenant. They reassure you that the person you're letting to is who they say they are and help mitigate against issues like anti-social behaviour and non-payment of rent.

Most students won't have significant rental history or income, so guarantors become critical. The guarantor should undergo the same referencing process as the tenant. Make sure the guarantor agreement is legally sound and clearly explains their obligations under the periodic tenancy regime.

Financial management and rent setting

Setting competitive rents

Research is essential. Look at comparable properties in the same area, check what university accommodation costs, and review recent lettings data. Your rent needs to be competitive but must also cover your costs and provide a reasonable return.

Under the Renters Rights Act, Landlords will have to follow a set procedure to increase the rent including giving tenants 2 months' notice of the proposed increase. This notice is called a 'Section 13 notice'. Rent review clauses in tenancy agreements will have no effect.

Managing cash flow

The ban on advance rent payments will affect cash flow for many student landlords. Termly or annual upfront payments — a previously staple diet for private student markets — will be restricted. Monthly payments will increasingly become the default.

Plan your finances accordingly. Ensure you have sufficient reserves to cover void periods, maintenance costs, and any gaps in rental income. Good relationships with guarantors become even more important under the new regime.

Bills-inclusive or bills-exclusive?

Many student landlords offer bills-inclusive packages to simplify matters for tenants. This typically includes utilities, broadband, and sometimes council tax (though full-time students are exempt from council tax anyway). The advantage is administrative simplicity and a single, predictable monthly payment for tenants. The disadvantage is you bear the risk of usage spikes.

If you go bills-exclusive, be very clear about which bills tenants are responsible for and provide guidance on setting up accounts. Remember that utility companies can pursue landlords for unpaid bills if they cannot recover from tenants.

Tenancy agreements and documentation

Crafting compliant agreements for 2026

As the 1st of May 2026 approaches, the landlord will need to update all tenancy documents to comply. Old AST tenancy agreements will no longer be fit for purpose. Landlords will need a compliant periodic tenancy agreement.

Your new agreements need to be clear on rent frequency, policies for inspections and repairs, communication protocols, and how cohort changeovers will work. A formal "changeover plan" in writing is going to be essential.

Include clauses acknowledging that the property is used for student accommodation and is re-let to a new cohort each academic year, and that you may seek possession at the end of the academic cycle using Ground 4A. Make it clear that tenants must cooperate with reasonable end-of-year inspections and viewings for re-letting.

Required documentation

Before any tenancy begins, you must provide tenants with several documents. These include the EPC, Gas Safety Record, EICR where applicable, and the latest "How to Rent" guide for assured tenancies in England.

Landlords will have to give tenants a written statement of terms of their tenancy and any other required information. This statement of terms will need to be provided before the tenancy starts under the new regime.

Protect deposits within the required timeframe and provide prescribed information. For student tenancies, explaining the role of the deposit and how it's protected helps manage expectations. It's also good practice to give tenants clear information about what the deposit can and cannot be used for.

Property management best practices

Communication and responsiveness

Students are often aware of the law, vocal and organised, so complaints can move fast. Any landlord without a proper maintenance reporting system is asking for trouble.

Set up clear channels for maintenance requests. The August app allows tenants to report issues with photos and descriptions, creating a clear audit trail. Respond promptly to all requests and set realistic timelines for repairs.

Regular communication builds trust. Share practical guides with tenants on topics like using central heating efficiently, preventing condensation, and keeping the property secure. A short welcome pack at move-in covering emergency contacts, how to use appliances, and local information helps students settle in.

Inspections and maintenance

Conduct mid-tenancy inspections with proper notice and tenant consent. Focus on damp and mould risk areas (bathrooms, kitchens, external walls), boiler pressure and operation, radiators, extractor fans, and any minor leaks under sinks. Record findings with photos.

Small preventative fixes now save larger bills later. A dripping tap, a broken fence panel, a sticking door - these minor issues, if left unaddressed, create dissatisfaction and can develop into bigger problems.

Plan your maintenance calendar around the academic year. Summer is ideal for major works when properties are vacant. Use this time for deep cleaning, decoration, replacing worn carpets or furniture, and addressing any compliance issues flagged during the year.

End of tenancy procedures

The relationship between you and your student tenants is a fundamental part of being a good landlord and running a successful lettings business. And when you're dealing with HMOs, this relationship becomes even more crucial.

Conduct thorough end-of-tenancy inventory checks. Use the original inventory as your benchmark, photograph each room, note fair wear and tear, and agree next steps with tenants where possible. Swift, clear communication keeps deposit disputes rare.

If deductions are necessary, explain them clearly with evidence. Remember that students are often renting for the first time and may not understand what constitutes normal wear and tear versus damage.

Building long-term success

Reputation matters

In the student market, reputation is everything. Students talk to each other, compare notes on landlords, and make recommendations. Being known as a responsive, fair landlord who maintains properties well will make it easier to find tenants and may allow you to command slightly higher rents.

Work with university accommodation offices to get accredited or recommended. Many universities maintain lists of approved landlords who meet certain standards. Getting on these lists provides credibility and access to a steady stream of prospective tenants.

Continuous improvement

The student accommodation market is competitive and standards continue to rise. Today, as a landlord of a student property, you not only have to provide high-quality accommodation, and fast and robust internet services as well as other amenities, you also have to understand and meet your legal obligations and use best practice in looking after your student tenants.

Invest in your properties. Energy efficiency improvements like LED lighting, better insulation, and modern heating controls reduce bills for tenants (if bills are included) or make the property more attractive (if bills are separate). They also improve your EPC rating, which matters increasingly to environmentally conscious students.

Consider what makes your property stand out. Fast WiFi, study spaces in bedrooms, outside areas, secure bike storage, good kitchen equipment - these details matter to students and help you attract quality tenants.

Professional support and tools

No landlord needs to manage everything alone. Build relationships with reliable contractors for plumbing, electrical work, and general maintenance. Agree service levels in advance and review them annually.

Tools like August come into their own. Designed specifically for landlords, August allows you to manage your properties, tenants, and compliance documents from one dashboard. Whether you're storing certificates, tracking renewal dates, or logging maintenance requests, everything is in one place and accessible when needed.

For HMO landlords especially, staying organised is not optional. Between licensing requirements, multiple tenants, regular inspections, and complex compliance obligations, a robust system saves time and reduces risk.

Tax and financial planning

Student landlords should understand their tax obligations. Rental income must be declared through Self-Assessment, with the tax year running from 6 April to 5 April. Keep meticulous records of income and allowable expenses.

Allowable expenses for student landlords include mortgage interest (with tax relief claimed under the current rules), repairs and maintenance, insurance, licensing fees, professional fees, marketing costs, and utilities if you pay them.

Consider working with an accountant who understands the rental property sector. They can help you optimise your tax position, plan for capital gains tax if you eventually sell, and ensure you're claiming all available reliefs.

Common pitfalls to avoid

Skipping proper referencing - Never compromise on tenant and guarantor checks, even when under pressure to fill a property quickly. The time saved upfront is rarely worth the potential problems later.

Neglecting maintenance - Small issues left unaddressed become big problems. Worse, they create dissatisfied tenants who may leave negative reviews or complain to the university accommodation office.

Poor communication - Failing to respond to tenant queries, providing unclear information, or not explaining changes properly damages relationships and creates unnecessary conflict.

Inadequate documentation - Missing or expired certificates, incomplete inventories, unclear tenancy agreements - these create legal risk and make dispute resolution difficult.

Underestimating costs - Student properties often require more maintenance than standard lets. Budget appropriately for wear and tear, void periods, and professional fees.

Ignoring the new legislation - Landlords of student accommodation should begin reviewing their tenancies now to ensure they are prepared to undertake the actions required in order to benefit from the exemption and transitional arrangements that apply to the qualifying tenancies. Don't wait until May 2026 to update your systems and documentation.

Looking ahead - The future of student accommodation

The Renters Rights Act represents a significant shift, but it's not the end of student landlording as a viable investment. Landlords who adapt, professionalise their operations, and focus on providing quality accommodation with excellent service will continue to thrive.

The fundamental dynamics haven't changed - students need somewhere to live, supply remains tight, and well-managed properties in good locations will always be in demand. What has changed is that the bar for professionalism has been raised. Landlords who treat this as a business, stay compliant, communicate well, and maintain their properties properly will find themselves at an advantage.

According to the Implementation Roadmap, the new financial penalties Section 6A of the Housing Act 2004 for Category 1 Hazards in PRS will come into effect in the "spring or summer of 2026". Additional regulations around the Private Rented Sector Database and Landlord Ombudsman will follow in subsequent years. Staying informed about these developments is part of being a successful landlord.

Getting started

If you're considering entering the student accommodation market, start with thorough research. Visit university towns during term time, speak to local letting agents who specialise in student properties, and understand the specific dynamics of your target market.

Work backwards from your financial goals. What yield do you need? What occupancy rate can you reasonably expect? What are the realistic costs of licensing, compliance, maintenance, and void periods? Build a business plan that accounts for these factors and includes a buffer for unexpected expenses.

Start small if you're new to the sector. One well-managed HMO is better than multiple poorly managed properties. Learn the rhythms of the academic year, build your systems, and expand when you have the capacity to maintain your standards.

Most importantly, remember that student landlording is ultimately about providing homes for young people at a formative stage of their lives. Approached with professionalism, integrity, and a genuine commitment to quality, it can be both financially rewarding and personally satisfying.

The successful student accommodation landlord in 2026 and beyond will be someone who embraces the new regulatory framework, invests in their properties, communicates effectively with tenants, maintains meticulous records, and delivers consistent quality. With the right approach, the opportunities in this market remain substantial.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.