When purchasing or upgrading a rental property, it is important to focus on the features good tenants look for. This allows you to spend your money thoughtfully, on things that will maximise your property’s rental appeal. It should also help you attract higher quality applicants, leading to a more stable, and less stressful, investment experience.
Here we explore the features good tenants look for when searching for a new home. We take a closer look at the common features that are at the top of most good tenants’ wish lists. We also share the best ways to boost your property’s appeal by targeting specific types of tenants.
Common features good tenants look for
The exact features good tenants look for in a rental property change and evolve, usually in response to social trends. For example, during the recent global pandemic, space became the top priority for most renters. Many renters were also swapping the convenience of the inner city for the lifestyle of outer suburban and regional areas.
More recently, we have seen renters returning to urban areas, though still with a focus on lifestyle. This has further increased interest in features that add comfort and make daily life easier to manage, including:
- Heating and cooling: While our weather is one of the many reasons people move to – and love – Sydney, it can be quite extreme. Most renters are well aware of this and want to have at least some control over their home climate. A reverse cycle unit in the living area will usually suffice, though some renters will want ducts in every room.
- Outdoor space: For many people, the lockdowns experienced during the pandemic highlighted the importance of having a private outdoor area. As a result, most tenants now want some external space where they can relax and entertain. Depending on the area and type of property, this could be a small balcony, an enclosed courtyard, or landscaped gardens.
- Secure parking: For renters with their own vehicle, a designated parking spot is usually a top priority. This is particularly true in inner city areas, where public parking can be expensive and in short supply. While most renters would prefer a secure, off-street space, many are willing to consider permitted on-street parking.
- Easy access to public transport: Even if they have their own vehicle, most tenants would prefer not to have to use it all the time. As such, good transport links will make a property much more appealing to a wider range of potential tenants. Ideally, this will include stations or stops within a short walk, which connect to key locations, like the CBD.
- Dishwasher: They may have been considered a luxury not that long ago, but dishwashers are now seen as an essential. Tenants may not actively seek out a property with a dishwasher, but they will definitely notice if there isn’t one. So, while it may not increase the appeal of your property, a dishwasher is a feature good tenants look for.
- Storage space: For most renters, the ideal place will feature a range of different built-in storage areas. There should be cabinetry for kitchen wares, wardrobes for clothing, cupboards for linens, and flexible spaces for everything else. While the amount of storage won’t be a dealbreaker for every renter, a lack of space will usually be noticed.
- Internal laundry: Being able to do their laundry within their own home is a significant convenience, and time-saver, for a renter. As such, having the space and fittings for a washer and dryer within the property is important. As communal laundry facilities used to be more common, this is a particular consideration for older-style units.
- Security: Simple safety features, like locks on doors and windows, are now not only expected, but required in many locations. Additional measures, like secure entry and alarm systems, can also add appeal for renters who are concerned about safety. However, these should be implemented thoughtfully, as visible security features, like bars on windows, will put off some applicants.
- High-Speed Internet: If a renter works from home or uses streaming services, a fast, reliable internet connection will be crucial. While this can now be accessed via satellite, a traditional wired connection (like NBN) is usually cheaper and easier. Decent mobile coverage is also a key feature good tenants look for when considering a rental property.
- Natural Light: Most renters will respond much more positively to a property that feels light, bright, and airy. Good natural light can also make a property seem larger, further boosting its rental appeal. Thoughtful window placement, and the use of skylights, can help maximise natural light, without compromising on privacy and security.
- Quality flooring: While individual tastes may vary, in our experience, hardwood is the most popular flooring choice among renters. It adds warmth and character to a property and is more hard-wearing than other common flooring types (e.g. carpet). Alternatively, a high-quality laminate can look similar, and be equally robust, but should be more cost-effective.
- Maintenance and presentation: Regardless of a property’s age and style, a good tenant will want to see that it has been well maintained. This should mean that there will be fewer issues and less need for repair and replacement during their tenancy. It also suggests that you are a responsive landlord who is willing to invest in the required upkeep.
Would you like to receive our weekly investor newsletter?
JOIN OUR WEEKLY INVESTOR NEWSLETTER
Specific features that can boost your property’s rental appeal
While a rental property should have broad appeal, it can pay to cater to certain types of tenants. Some renters have unique requirements and will be drawn to properties that clearly meet them. Others are willing to pay more for a property that suits their specific tastes or circumstances.
Acknowledging this, you may want to consider offering a property that is:
- Pet-friendly: While there are plans to make it easier for tenants to keep a pet, most properties are not pet-friendly. As many renters have, or would like, a pet, being open to applicants with them widens your potential tenant pool. If you are concerned about the potential for pet-related damage, the right landlord insurance can offset this risk.
- Fully furnished: Furnished rental properties primarily appeal to professionals who are relocating from interstate or overseas, and require temporary or transitional housing. While this market may be smaller, these tenants are usually willing to pay a significant premium for the convenience. Fully furnished properties also offer additional tax deductions which, depending on your situation, could be a substantial financial benefit.
- Art Deco or period: The architectural style of your property will have a major impact on the type of renter you will attract. While every style has its benefits, properties with historical charm or unique features tend to attract a premium. This is particularly true when they have been well maintained and sensitively updated with all of the modern comforts.
Want more information?
To discuss the key features good tenants look for, and how to maximise your rental property’s appeal, contact Local Agency Co. Our highly experienced property management team understand current renter expectations and are experts in helping landlords meet them. Whether you need advice on finding the perfect investment property, or guidance on targeting your renovation budget, we can help.
CLICK HERE TO SPEAK WITH AN EXPERIENCED LOCAL PROPERTY MANAGER