Do you know what renters are currently looking for in the market or what they expect of you as the landlord? Check out the findings from a survey by realestateview.com.au
Do you know what renters are currently looking for in the market or what they expect of you as the landlord?
A survey conducted by realestateview.com.au in March 2014 asked buyers and renters about their views on the property market and also created a comparative overview of renters including lifestyle preferences, pet peeves and why they are still renting and not buying.
As a landlord, it’s important to be wary of what things annoy renters. By knowing these things, you can implement preventative measures to ensure your own tenants do not experience these issues while living at your property.
According to the Housing Sentiment Report, the top four pet peeves for renters are:
• Not being able to make changes to the property (59.7%)
• Property manager is unresponsive (44.1%)
• Pet restrictions (37.8%)
• Paying to fix things themselves because it’s quicker (30.3%)
The majority of the pet peeves involve the property manager not being prompt with responding to the tenants. The key to keeping your tenants happy is simply being attentive. The more professional and personable you are, the more likely tenants will feel comfortable coming to you with questions and concerns.
Factors influencing which suburb a renter lives in
One of the big mistakes investors make is selecting a suburb that they would like to live in, not where tenants are looking. What might suit your preferences may not necessarily suit what renters are looking for.
The top four factors which influence where a renter chooses to live are neighbourhood safety (53.9%) public transport access (44.2%), shops (34.7%) and distance from work (34%).
Finding a suitable location that is in demand for renters can be made easier by doing your research. However, real estate listings and sales data can only give a limited amount of information about the area. Take a look at our top apps for finding the right location blog (link) which, combined together, can give a well-rounded outline of a suburb.
Top 5 property features renters want
When looking for a property to rent, there are certain features that are more important than others for renters. According to the Housing Sentiment Report, the top five features for renters are size of property (27.4%), big or good quality kitchen (26.5%), air conditioning/heating (26.1%), garage (19.7%) and outdoor area (19.1%).
If your property does not have these features, most of them can be added by renovating. However, one of the risks of renovating is overcapitalising on the project which may result in losing money due to lowering the rent as tenants are not willing to pay more for your improvements or the property may remain vacant for longer.
Being a property investor is more than just purchasing any property and advertising for tenants. To build a successful portfolio, investors need to see through the eyes of a renter and gain a clear understanding of what they want and need.