A property that’s in demand with tenants is a gift that keeps on giving, but finding a good income-generating property is slightly different from finding a property for yourself and your family.
There are a few key things that make a property more desirable as a rental, and knowing what they are before you invest is the key to ongoing success.
Here are 6 things that tenants can’t get enough of.
Prompt Maintenance:
A new national survey found that more than half of all Australian renters live in a home in need of repairs. According to the survey, in New South Wales, 56% of tenants said they were living in a house that needed repairs, followed by Victoria (55%), Western Australia (50%) and Tasmania (46%).
Landlords who maintain their properties and are able to carry out regular repairs are clearly in short supply, and this may give you the edge you need when it comes to attracting good tenants. Select a highly communicative property manager that has a strong network of tradespeople to get repairs and maintenance carried out quickly.
If you can get a good landlord reference from previous tenants be sure to make it prominent when marketing your property.
Parking:
Access to parking is a massive selling point, especially in the CBD. If the building or property offers secure parking for one or more vehicles it’s going to be more attractive to tenants.
The other great thing about buying a property with multiple parking bays is the opportunity to rent out the parking space you’re not using. If you happen to have tenants who don’t need a parking bay you may be able to rent their parking spaces to other tenants in the building.
If a property with parking just isn’t in your budget, a property in an area with reasonable access to street parking will be more attractive to tenants than one in a particularly busy street.
Storage Space:
Storage space is another massive perk for tenants, but it’s not necessarily about having a bigger property.
Getting smart with your storage space and installing closets that increases storage space for your tenants will go a long way.
Low Maintenance Property:
Features such as large gardens, pools and wall-to-wall carpets, although attractive to you, may put tenants off. Renters prefer a fuss-free home that’s easy to clean and maintain.
In this way, new or refurbished houses tend to be more appealing than older homes. Plumbing, wiring and appliances should all be easy-to-use and reliable and homes or apartments that are easy to ‘lock ’n leave’ are always more attractive.
Unfurnished Property:
While furnished property appeals to some, the majority of tenants in Australia are looking for unfurnished property, according to rental agencies.
Renting out an unfurnished apartment also comes with two major benefits: the first is that unfurnished rental properties tend to go hand-in-hand with long-term leases, and the second is that if you furnish your property and something breaks or fails (like a washing machine or fridge), you as the landlord are responsible for repairing or replacing it, which can be costly and admin-intensive.
Area-specific features:
While there are some features all tenants want, there are many others that depend on the area you buy in.
For example, inner city residents will demand secure lock up parking, while those in the suburbs may be happy with off street parking, and in hotter climates like Brisbane, air conditioning is absolutely essential.
It’s always best to consult with a professional with experience in your desired area.
Keeping good tenants means taking care of your property and doing regular maintenance and checks. Selecting “investment grade” property is essential to maximising your rental yield and your cashflow. Remember: this is part of your retirement strategy!
If you’re looking for property that you will be able to rent out in future, it’s well worth speaking to a professional who can help you choose the best property for the area.
