What do tenants want? Getting your house rental ready
Category Newsletter: Article
Investing in a rental or holiday property might be one of the most exciting investments that you make. You are likely to do this on the basis that you would want maximum occupancy of your home or unit so that you can achieve the highest possible rental returns on your investment.
An important consideration in this process, is to think about what tenants want and what you need to do to get your rental property in the best state so that it can attract top quality tenants and rental rates.
There is a big difference between long-term residential and short-term holiday rentals. The latter might give you higher returns, but generally requires furnishings, fittings and extras and you are not always guaranteed of a good tenant. Long-term rentals are generally preferred as an unfurnished option and given the longer term nature, do provide a more stable income. Many property investors these days, look for a combination of the two.
Getting the best out of your rental investment starts with ensuring that you invest in a property that meets the generic needs of tenants. Some things to consider include:
Location – the first priority is to ensure that you invest in a rental in the right location. Research and work with a credible agency so that you invest in a property for which there is high demand for the type of rental income that you aim to secure. Property close to amenities such as shops, transport, schools and leisure attractions tend to be preferred for rentals.
Property type – the next consideration, is to ensure that you invest in the right type of property. If you want to capitalise on holiday rentals, then you may want to look at a small apartment within walking distance of the beaches. If you are looking for long-term rental security, then you might want to invest in a solid three bedroomed flat with access to good schools and business areas.
Security – security is a top priority when it comes to property, whether people are buying or renting. Aside from securing access through windows and doors, extras such as electric fencing and an alarm and CCTV system, preferably linked to a response company, provides added peace of mind. Secure parking is also preferred.
Low maintenance – if your property is purely for rental purposes, then it is best to fit it out in such a manner that it requires as little maintenance as possible. Think about the wear and tear that your property will endure when you do make-overs and renovations. Do not think about the kind of property that you want to live in. White carpets for example might be beautiful for your own coastal apartment, but will be a disaster for a rental unit. Rather stick to neutral colours and hard-wearing materials and finishes.
Outdoor/entertainment – locals love the outdoor and any excuse for a braai. It is therefore advisable that your unit or home has an outdoor area, even if it is just a balcony with space for a braai. Properties with extras such as a nice entertainment area and a Jacuzzi or swimming pool tend to be popular, but do require regular check-ups to ensure that the pool/Jacuzzi is property maintained.
Technology and extras – access to fibre has become an almost prerequisite and most tenants want access to Wi-Fi. When it comes to holiday accommodation, holiday makers will want this along with basic furniture, a working television, heating/cooling, an equipped kitchen with a working stove and fridge as well. If you are looking at the luxury rental market, you will need to add all of the expected luxuries into the mix.
Good management – good tenants will expect a property that is well managed and a responsive landlord/managing agent when there are issues that need to be addressed. If you are in for the long-run and find a good tenant who looks after your property and pays on time, then you should look after your tenant as well. Sometimes, it is better to take a slightly lower annual rental escalation in return for retaining a good client.
Author: Coastal Property Group
