What do tenants look for in a rental?

With demand for Australian rental properties nearing an all-time high, many property owners are living the dream. The national vacancy rate is hovering around a 10-year low, and due to the excessive rate of demand, many prospective tenants are offering to pay up to $100 more per week in order to secure a property. However, long term averages suggest that this number will eventually stabilise around 3%, meaning that the pressure will begin to fall back on landlords who need to ensure that their property is attractive to potential renters. How can you ensure that your property stands out? This article will detail 6 things that tenants look for in a rental.

Location

From a tenant’s perspective, location is one of, if not the most important factor to consider. This is because at the end of the day, a great location can increase the quality of a tenant’s lifestyle. In fact, research suggests that nearly 40% of renters would be willing to pay more if they were in walking distance of local amenities. This explains why rent in heavily urbanised properties tends to be comparatively higher per square meter.  

While there are a multitude of amenities that can make a location appealing, the vast majority of tenants look for places which are in close proximity to;

• their place of work
• a range of good quality cafes & restaurants
• public transport systems
• shopping centres
• school districts/universities (if applicable)

Be tenant friendly, not investor friendly

Due to the oversupply of inner-city apartments, the vacancy rate for Australian CBD’s is significantly higher than the national average. With this in mind, property owners need to offer that X factor in order to set them apart from thousands of other structurally similar apartments.

In order to stand out, it is suggested that rental properties come equipped with a range of appliances in order to provide occupants with a convenient space that is ready to live in. With this in mind, it is suggested that rental properties are, at the bare minimum, equipped with the following appliances;

• Refrigerator
• Microwave
• Dishwasher

Safety & security

In Australia, research suggests that your house has a 2.5% chance of being burgled. While this may be a someone confronting statistic, it is important to remember that criminals target homes that lack up to date security measures.

In addition to the obvious security measures such as locks and alarms, properties should also be fitted with a range of other safety features including but not limited to;

• Fences (if applicable)
• Safety glass
• CCTV systems/security cameras

Unsurprisingly, research suggests that properties with added security measures are more appealing to prospective occupants. Therefore, by adequately securing your place, you are increasing the chances of receiving rental income.

Renovations & overall design

While properties can stay structurally intact for several decades, styles change every few years. Think about it – Most tenants don’t want to live in a place that looks like it is stuck in the 1990’s. Instead, they want modern features, pleasing colour co-ordinations, and a generally satisfying aesthetic.

Therefore, landlords should consider renovating their rental property at least once every 7-10 years. This can maintain physical integrity, as well as ensuring that the place is visually appealing.

While this may seem like a waste of money to some, renovations can have a profound financial benefit on the property owner; Research shows that sensible renovations result in properties yielding a higher rental income.

Parking

It goes without saying that nobody wants to continuously undertake the tedious hassle of looking for a parking spot. Obviously, people living in suburban properties usually don’t need to worry about this issue. However, for individuals looking to live in a more confined, metropolitan environment, parking can be a crucial factor to consider. If there is no street parking available, landlords have been known to purchase car/garage spaces in order to entice potential occupants.

Air conditioning

Australia is simply a very hot country in general, with many cities regularly experiencing days where the temperature soars well above 30 degrees Celsius. With this in mind, many Australians consider air conditioning to be a luxurious accessory.

Conclusion

Decade long averages suggest that this excessive rental demand cannot continue in the long run. With this in mind, it is important for landlords to realise that in order to maintain a steady rental income, they need to think from the perspective of the tenant. By adhering to the advice in this article, you can greatly increase the chances of renting out your property.

If you enjoyed this article then you may want to look at an analysis of the capital growth v rental yield debate.