Are there any financial issues a tenant should know before booking student accommodation?
One of the first major milestones in many young people’s lives is leaving home for the first time and starting higher education. Though an exciting process for many, this newfound freedom can be hard to navigate, particularly as many first-time tenants will be responsible for their finances with the help of a student loan. In fact, studies have found that a maintenance loan almost entirely is used for rent, leading to financial issues that may need to be considered when finding student accommodation.
This guide will consider the most common challenges a tenant may face when booking and living in student accommodation, offering solutions and ways to navigate managing student finances.
What are the common financial issues for students living on campus?
Living on campus can provide a sense of community and convenience, but it has financial challenges. One of the primary issues is the cost of accommodation itself, which can vary significantly depending on the university, location and the type of accommodation available. University halls of residence often come with a higher price tag due to the amenities and proximity to campus facilities.
Also, many university halls of residence may offer catering facilities, which may come at a higher rent bracket. Catered accommodation may initially appear convenient when booking student accommodation; however, this may not always be the best value for money.
What are the common financial challenges for students living in private accommodation?
Choosing private student accommodation, such as shared housing or private halls, can offer more flexibility and potentially lower costs. However, other financial challenges must be considered. One of the most significant issues is the varying rent costs. Depending on the location and type of private accommodation, rents can vary widely. Students often find that private rents in popular university cities are high, especially for properties close to the campus.
Utility bills are another concern. Unlike university accommodation, where utilities are often included in the rent, private accommodation may require tenants to pay for electricity, gas, water, and internet separately. This will be included in the tenancy contract, so ensure you are aware of any additional bills that must be paid before signing an agreement.
Managing bills can be complex, particularly in shared houses where splitting costs can lead to disputes among housemates. In shared housing, there is also an additional risk of a fellow tenant refusing to contribute to the rent or leaving mid-term, causing financial implications for you and the rest of the house.
If you are looking for student accommodation away from the university campus, consider private student halls that do not include sharing bills. By choosing the right accommodation and room type, you are only responsible for your own bills and do not have to cover the other tenants.
Also, certain private accommodations require prospective students to have a guarantor. This helps manage potential financial concerns and acts as a security blanket if problems with payment arise.
Top tips for managing expenses and budgeting
Managing expenses and sticking to a budget is crucial for students living in any type of accommodation. A well-structured budget helps in understanding income and expenditure, ensuring that essential costs are covered while also allowing for savings and discretionary spending.
One of the most effective ways to manage expenses is to track all income sources, such as student loans, grants, part-time job earnings, and financial support from family. Once you have a clear picture of your income, list all regular expenses. This should include rent, utilities, food, transportation, study materials, and personal expenses.
Setting priorities is essential. Rent and utility bills should be at the top of your list, as failing to pay these can lead to severe consequences, such as eviction or disconnection of services. After accounting for these essential expenses, allocate a portion of your budget for savings. Even a small amount set aside each month can provide a financial cushion for unexpected costs.
Using budgeting apps can be incredibly helpful. These apps allow you to monitor your spending in real time and provide alerts when approaching your budget limits. They can also help you identify areas where you might be overspending, allowing you to adjust as needed.
Mansion Student provides on-site hospitality teams at each of our student accommodation locations, who will support tenants with various problems. If you have any issues or questions regarding payment, our dedicated staff will offer guidance and instructions on your next steps.
What should you consider when booking student accommodation?
Managing finances can be challenging, especially if you have not had the responsibility before. Therefore, choosing the right student accommodation is a crucial decision that can impact both your financial situation and overall university experience. Ensure you compare various student accommodation types, including their rent, facilities, security, and proximity to campus. Consider the financial implications, particularly if you share a house with other tenants, or if bills are included in the overall cost.
It is recommended that you view the property as well before booking student accommodation. Check the condition of the accommodation before signing any agreement. Visit the property if possible and look for signs of wear and tear, potential maintenance issues, and overall cleanliness. If you notice any issues, discuss them with the landlord or accommodation provider and ensure they are addressed before you move in. This also gives you ample opportunity to speak to the on-site hospitality team with questions about finances.
Mansion Student provides accommodation across the UK, including popular cities like Leeds, Nottingham and Dundee. Make sure you arrange a viewing for more information and guidance on student financial support.
For more information, or to speak to a specific property’s team, contact Mansion Student today.
Frequently asked questions
How is the amount of the maintenance loan determined?
As you start to receive your university placement offers, creating a Student Finance account and completing an application is important. This will include proof of identity, national insurance information and the details of your household’s income needed for the maintenance loan.
Your maintenance loan amount will be based on several factors, such as your household income, where you live, where you plan to study, and your personal family history. For example, if you are the first to attend university in your immediate family to attend university, you may be entitled to a larger loan.
