Despite the COVID-19 pandemic slowing down economic activity and demand for rental properties, the student rental market has seen significant growth in recent years. The market - worth £35 billion in 2018 - is now expected to balloon to more than £75 billion by 2025, fueled by growing demand from students for high-quality accommodation across the UK.
At Billing Better, we offer a bills management service to students and young professionals, designed to help them reduce unnecessary admin and focus on their studies. We extended the scheme to letting agents, who can resell our service under their own brand. Recently, we covered some fun marketing ideas for agents to target student tenants, and today, we’re delving deeper into the sector, offering eye-opening statistics that could change the way you run your business. Data was taken from the Knight Frank and UCAS 2021 Annual Survey.
Though your ultimate responsibility as a letting agent is to offer quality accommodation for studies, the truth is that modern student tenants want more than that. You can appeal to their growing interest in loyalty programs and discount schemes by signing up to Billing Better and offering a bills-included service. As part of the scheme, our LifePerks initiative allows you to offer student tenants great discounts on groceries, fashion, entertainment, and travel.
As the pandemic has taught us, good internet speeds are no longer just a nice-to-have. Make sure your properties have access to quality fibre broadband connections and consider bundling WiFi together as part of their monthly rent. At Billing Better, we offer a range of internet speeds to suit every student budget - offering an add-on or upgrade could be wise.
As a letting agent or student accommodation provider, your brand should be carefully considered. The UCAS report found that 50% of new first-year students said their student accommodation provider’s branding played in a role in their decision to choose them, up from 40% in 2020. 63% of second and third-year students value branding, so don’t scrimp!
Although most students are unable to commit to a long-term tenancy until their place at university has been confirmed, a whopping 60% of first-year students say they secure their accommodation between May and August. Therefore, your marketing campaigns must begin early in the year to maximise your brand reach and to win over potential student tenants.
According to recent findings, 40% of second years living in private accommodation plan to stay in the same accommodation the following year. We’ve already put together some tips on encouraging students to extend their tenancy. Deliver quality accommodation and great service and they’ll be less likely to move, so you to secure their business for another year.
According to UCAS, 60% of students in the Bristol area secured their accommodation for the following academic year by the end of March. In popular and competitive student cities, it pays to stay on the ball with your marketing and branding activities year-round to stay at the forefront of tenants’ minds and become a preferred choice, helping you increase occupancy.
Don’t assume that student tenants will leave you post-graduation. According to UCAS, two-thirds in London plan to stay in the capital once they’ve graduated. Maximise the customer journey by targeting both students and young professionals looking for similar accommodation and add-ons like bills management, extending average customer lifespans.
Although accommodation providers and landlords get a bad rap, 57% of students rate private accommodation as good or extremely good value for money. Add on our service to offer a bills-included tenancy package and you can target price-conscious consumers.
Did these statistics shock you? Let us know and check back soon for more from the team.