September is one of the busiest times of the year in the private rented sector (PRS), particularly for tenancy deposit schemes like SafeDeposits Scotland, who see a large number of deposits being registered for students moving into new homes as they prepare for the academic year ahead.
Many students moving into new homes will be living away from their parents for the first time, however not every type of accommodation available to students is the same.
Houses in Multiple Occupation
Houses in Multiple Occupation (HMOs) are a popular choice for students sharing a home together. A HMO is classified as a property where there are three or more occupants from different families living there and sharing the same bathroom and kitchen, along with other facilities. HMOs tend to be a popular choice for students who are already friends and attending university together, or friends who have met and spent some time living together in halls before they decide they want to rent together. Other times, a group of students who have never met before might choose to live together in a HMO.
If a landlord wants to operate their property as an HMO, they will first require a license, which needs to be renewed every three years. Tenants in HMOs can still be asked to pay a deposit, which must be lodged with a tenancy deposit scheme.
Halls of Residence
University halls of residence are perhaps what most people first think of when it comes to student homes. Students who choose to stay in halls of residence will live with other students in a block that has shared facilities and individual bedrooms. Halls of residence will typically be very close to the university campus so that students can travel between the two easily. Some university halls may ask for a deposit, whereas others may instead ask for a small payment to be made upfront which will be deducted from the overall accommodation costs.
Purpose Built Student Accommodation
Purpose Built Student Accommodation (PBSA) is a newer model of student accommodation. They will typically comprise small apartments that include bedroom, bathroom and cooking areas alongside shared facilities such as gyms, study spaces and social areas. Some will include shared facilities for the whole building such as gyms or study spaces.
PBSA’s are privately owned rather than being owned by the university, and will usually ask for a small amount of rent that also covers utility bills, making it attractive for students with limited incomes who would struggle to pay rent and bills.
Most PBSAs will require a deposit, however deposit amounts tend to be lower than those for regular private rented tenancies. Deposits are paid when the student applies for the room, so they can be paid well in advance. Due to the smaller room size and lower deposit amount, disputes in PBSA’s tend to be much less common than in HMO’s.
