What is a Vendor Advocate and how do they benefit you?
How To Attract And Keep The Right Tenants For Your Property
Purchasing an investment property is not just about numbers, there are other factors to consider too, including tenants, who when searching for properties to rent, look for the same attributes that owner-occupiers do. Your investment property must be one in which you want your ideal tenant to reside in.
Location… plays a big role in attracting and retaining tenants. Properties located in areas that are well connected to public transportation, freeways and well-maintained roads, with easy access to the CBD are important. A safe and quiet suburb is another important factor, increasing marketability and value.
Economic Growth… areas with a strong economic growth and job market tend to experience population growth and increased demand for housing. Investing in areas with a healthy economy and strong employment opportunities lessens the risk of tenant vacancies and supports the potential growth of your investment.
Amenities and Future Development… areas with good school zones, hospitals, local grocery stores and retail spaces, cafes and restaurants, parks and sporting facilities, entertainment venues are very appealing to tenants. Conduct research on any future developments and urban planning initiatives intended for the area as these could significantly increase the value of properties and the appeal for tenants.
Demographics… use demographic data to research the market. Understand what potential tenants are looking for in a rental property and choose a location that will give you stable tenants and long term rental returns. Look for areas with a high population growth, increasing incomes and employment opportunities. Think about the lifestyle preferences of your target market to help you choose a location that will be appealing to your ideal tenant.
Street Appeal… should be considered when thinking of the type of tenant you wish to attract. Street appeal will entice potential tenants and set expectations of how the property is to be kept during their tenancy. Look at other properties in the area too, are those properties also well looked after?
Property Features and Condition… even though you won’t be living in the property, it is wise to consider it’s features and if they will be attractive to tenants. For example, an outdoor space is often a key factor, an extra bathroom may be attractive to families, a work from home space might be valuable for a professional couple. The property should be functional and clean with working appliances.
Supply and Demand… choose a location that is the perfect balance between the supply and demand of rental properties. Too many rental properties in an area can make it harder to find a tenant, or even the right tenant, and may result in high vacancy rates and lower yield. Whereas if there are fewer rental properties in the area it creates demand, optimizing the potential for high yield and gaining the ideal tenant.
Maintenance… keeping up with maintenance and addressing issues quickly will make tenants feel appreciated and could increase the chances of keeping them long term. It can also help keep smaller maintenance tasks from turning into larger issues and allow you to spend less time on repairs when it comes time to sell your property.
Management… properties that have a reputable managing agent in place to oversee the running of the property will appeal to tenants because they can feel assured that issues will be dealt with quickly.
Buyer Pool… When it comes to selling your property in the future, you want to have as broad of a buyer pool as possible. All of the above points will attract buyers and offer resale appeal.
Whilst you are not necessarily going to be the target demographic to live in the property, if you can’t see someone else living there and what they like about the location and the property, then it’s not the right property for you to purchase as an investment.
At Inview Property we can assist you. Our team of buyers advocates can help you purchase your next investment property and our property management team can manage your investment. Contact us for a free no obligation chat where we can discuss our services and how we can best guide you on your property journey.