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5 things tenants will pay more for
Knowing what renters want in a property can give you a competitive edge in the market and help lower your vacancy rate.
According to the 2016 Federal Election Survey, Australia’s seven million renters make up around 30% of the population and this number is continually increasing.
However, many tenants are calling for improved services and more options when it comes to renting. According to the survey, 95% of tenants believe rents are too high and 27% of current tenants have no intention of buying their own home.
So what type of things do renters prioritise and what can you do to make your rental property look even more attractive to help draw in renters and also keep them happy?
Location has been one of the top priorities for renters for a long time and it doesn’t look like it is going to change anytime soon. According to Co-Founder of First Home Buyers Australia, Daniel Cohen, renters are willing to pay more money to live in their preferred location.
“We find that people think about where they need to live first. Property features and cost questions come into the equation after this,” he says.
So, if you are looking to purchase a rental property, where should you look? Some places you need to include in your research are:
- Real estate websites that provide statistics on vacancy rates
- Local real estate agents who have extensive knowledge about the local area
Rental properties near amenities, in particular transport, come up with a huge premium due to the strong demand for these properties.
What used to be a luxury is now considered a necessity, especially for younger renters.
Having access to fast internet is a big priority for most renters and can really set your property a part from the rest. Most new areas have an NBN connection, but if your area doesn’t, it may be worth looking into getting a connection to your property as it may make it more appealing to renters.
Find out more
Want to know whether the NBN network is available at your property? Find out here.
You may cringe at the thought of letting dogs and cats live in your investment property, but they can be a valuable asset.
There are currently over 33 million pets in Australia, which is a massive pool of potential tenants who may be looking to rent. If you are worried about allowing pets, implement rules that will help you maintain control of the property.
- Increase the rent or bond: As you are offering something different or extra, you may be able to charge a higher rent or bond.
- Professional cleaning: should be completed periodically, particularly for carpets and the garden.
- Ask to see the pets beforehand: Your property may be suited to a certain type of animal, so seeing the pets beforehand can help you make an informed decision.
With scorching summers and chilly winters, it can make day to day living uncomfortable.
Just one or two wall units can help keep the main living areas of a home cool/warm, depending on the time of the year, and could cost as little as a couple thousand dollars. While installing air conditioning units may not directly increase the value of the property, it can make the property more appealing to tenants which could help keep the vacancy rate low.
While you might be busy trying to find a good tenant, you shouldn’t forget that tenants also want to find a good landlord.
It can be harder for tenants to do a check on landlords and many just assume the landlord will be responsive. Communicating regularly, responding to requests efficiently and maintaining the property are all things tenants look for in a good landlord. Similar to the air conditioning, although being an engaging landlord does not directly affect the property’s value, your tenants will be more likely to renew their lease if they are happy with you.
- 4 simple tips to increase your income
- 4 bright ideas to increase your property’s ROI
- Why landlords change agents
- Letting: To furnish or unfurnish?
- 6 tips when buying your first investment property
- The pitfalls of renting to family or friends
- Landlords: Protection against bad tenants
- Important tax tips for property investors
- 10 tax tips for landlords
We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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