One of the main rules for anyone experienced in investing in property is to match the type of investment they want to buy with a set of potential tenants they want to attract. For example, buying an established house in the suburbs will certainly attract a family-orientated demographic, but it might also exclude a wide range of renters looking for something a little more modern and closer to the city. Ultimately as an investor you want to know that your property will have lasting appeal, be relatively maintenance free and always be attractive to high value tenants.
Targeting The Inner City Rental Market
Recent surveys and studies such as the Australian Property Monitors Rental Report all point to an increase in demand for brand new apartments in prime locations in the major capital cities. It appears that not only are there more young professionals and members of Gen Y looking for properties close to the city and right in the heart of entertainment and transport hubs, but older, more established properties are taking longer to rent once they come on to the market.
These type of high value tenants should be targeted by anyone interested in investing in property as they will generally pay a premium for brand new properties, especially if they come packed with facilities such as pools, gyms and food delivery services. Many renters in this market will be looking to find a property to share with their friends and colleagues, and apartments that can offer them a flexible floor plan that includes open plan living room and entertainment areas are ideal. Many renters will also be looking for spaces they can use as separate studies or media rooms.
As part of the changing demographics and more people renting property to live in, tenants are becoming less willing to make some of the lifestyle sacrifices that many tenants previously made. One area that’s changing is pet-friendliness of rental properties. As more people make a longer term commitment to renting, they still want to have the ability to have and keep pets. Many real estate agents now say that pet owners make for great tenants because they are more established and tend to move less which is ideal if you’re an investor. Pet bonds are now becoming more common and in a competitive market, this should be something that investors give serious consideration to.
More tech savvy tenants also want to make sure that their homes are properly wired up with high speed internet access. With the increase of on demand entertainment services like Netflix and Stan as well as the lines between work and home being blurred by technology, making sure your property is well connected is a must. Luckily, most inner city developments are well serviced by the existing network infrastructure and many are being connected to the NBN as part of their construction.
When investing in property with a view to finding tenants, it’s important to make sure you keep the “wants” of the possible tenant in mind, ensuring that your property appeals to their desires. Having an investment property that ticks these boxes will ensure that you have an easier time finding tenants while maximising your rental returns by ticking all the right boxes for prospective renters.