Looking to purchase your first rental property? Or perhaps you’re thinking about how best to expand your existing portfolio. Either way, ensuring your next purchase is appealing to tenants and will provide you with an attractive return later down the line is an important balancing act.
Here, we outline some of the key ‘investable’ features to look out for when choosing your next investment property.
Whilst this is an obvious one, parking is high on the priority list for many tenants, in particular those living beyond key commuter towns and cities. With the number of two-car households increasing by more than half a million in the last year alone, it’s almost guaranteed that prospective tenants will enquire about parking, if at least for their guests. If you have your heart set on a property without parking, try sourcing a council permit for local public parking, as this can make a great alternative and sometimes help yield a slightly higher rent, too.
2. Natural light
Regardless of your target demographic, natural light will go a long way when it comes to successfully renting your home. Not only does it help make a property feel more open and spacious for prospective tenants, it’s a great selling feature for later down the line. If you’re looking to improve your current rental properties, try decorating with clean, natural décor and using trickery such as mirrors and sheeny surface finishings.
3. Location and transport links
Again, this is likely to be high on your priority list already, but rental properties are often always about Location, Location, Location. For young professionals in particular, being within a commutable distance of key towns or cities is likely to be a priority, whilst families will also be keen to live nearby to leisure facilities, supermarkets and buzzy town centres.
4. White goods
Most tenants assume that white goods will be included in their rental home, especially if they’re not looking to settle down in a property long-term. Students, city workers or part-time renters, for example, would likely be turned off if white goods failed to be provided in their new home. Fridge freezers, washing machines and tumble dryers are commonly expected by tenants, so providing these facilities can make all the difference.
5. Safety and security
Security often goes hand-in-hand with location. A safe environment is a powerful motivator for tenants, particularly if they travel for work, or intend to make your house a home long-term. Therefore, be sure to fully vet whichever areas you are considering as your next investment move. Researching crime statistics is a great place to start especially if you’re considering buying in an unfamiliar area. Regarding the property itself, mid or top-floor apartments are often more favourable than ground floor ones, whilst adding an alarm service or providing additional locks can help tenants feel more secure.
6. Outdoor space
Whilst it’s not necessary to get concerned over the lack of garden space in a property, having a private backyard, patio or balcony is certainly an attractive offering for tenants, especially if your home is located in the city. Being able to enjoy fresh air and sunshine is a big factor for many tenants, so purchasing a property with an outdoor feature will certainly help boost interest – if not rent – in your home.
Want more information on the best features to consider when buying a rental property? Contact your local Leaders branch to speak to one of our property experts.