10 Ways to Make Your Investment Property The One Tenants Want
Prior to the pandemic, investment properties in Australia accounted for around 38% of the mortgage market, during covid that dropped to 22%. Thus, creating a huge reduction in the amount of property to rent and subsequently spiking prices up sharply. Now on the other side of it all, demand is pushing prices up on quality properties and many average properties are missing out. If you’re in that situation, here are 10 tips to get that issue resolved and get a great tenant for your investment property ASAP.
The Push to Work From Home
The pandemic may have given us many numbers we’d probably rather forget, but it’s worth noting over 40% of Australians worked from home regularly in 2021, and it seems as if that’s the way of the future. So, they’re going to need the space to do so, whether it’s converting a bedroom or garage in a house or just fitting a desk or creating a small nook in an apartment, the importance of having work from home space has never been greater.
Efficiency and Sustainability
Recent political and cultural trends will tell you that maintaining ethical and environmentally efficient standards is fast becoming a top priority for many Australians. This begins with the physical build itself, what materials are used? Who built the property? Are they known to be a sustainable brand? This also extends to what the home possesses in areas like heating/cooling, lighting and cooking facilities. A great way to show tenants your care is through the installation of solar panels, water tanks, double glazing and LED lighting, while creating a system for recycling wastewater. All of this can greatly reduce utility bills for your tenants, and add value to your investment, making everyone happy!
Effective And Efficient Heating & Cooling
We all know how tough the winter and summer seasons get in Melbourne, but have you thought about your potential tenants? Heating and cooling options can be the difference in renters selecting properties because of how it greatly impacts the comfort factor, plus now you’ve got more people than ever working from home, so they really need to know their heating and cooling options make them comfortable. But it’s not just a heating or cooling system, the modern tenant is looking for efficiency. Maybe it is time to replace that old and inefficient air conditioner or upgrade from those cheap Bunnings panel heaters that cost a small country to run. You’ll be looking after your tenants and adding value to the property. Around 40% of household energy goes into heating and cooling on average in Australia, so the right system is vital for a savvy tenant.
Feeling unsafe in your own home can force a good tenant to leave, so make sure you do what’s required to give your tenants the protection they need. This comes down to what the type of property is and its location. If the property is an apartment check to make sure there’s a security entrance, and that door is actually closed and not left ajar all day. If it’s a house setting, the use of security doors or a video intercom system may do the trick or even the installation of a security system in some cases to let your tenants rest easy. Consider the use of lighting too (sensor and security lighting), a study showed outdoor lighting can cut crime by 39%.
Presentability For The Average Renter
Maximising the presentability of your property can be a huge factor at inspection time. You might be the colourful type or prefer the darker tones, but your investment isn’t the place to paint all colours of the rainbow, it’s about playing the percentages in real estate. Most renters are looking for a neutral palette and light filled spaces. Remember to keep the space open and make sure there’s not too much clutter around, this helps people envision how they would live in the space.
The Value Of Marketing
You may be sitting on an idyllic property, but not bringing out its best features through amateur photography and a poorly written ad. That’s why it’s worth considering spending money on marketing to attract more interest and bring out the beauty of the property at hand. From professional photography with some virtual staging to show its best sides, copywriting to give onlookers a concise and captivating written snapshot or even styling to give prospective tenants a true representation of how they could set up the space.
Technology And Modern Movement
Make sure you’re moving with the times because renters are keen to keep up too. From contemporary additions like automated lighting, window furnishings, NBN, internet cabling or entertainment equipment, look to give your property the technology it requires to not be overlooked. Just like you, tenants don’t want to get left behind in the technology landscape, so make sure you deliver what your tenant needs in your investment property so it doesn’t get left behind.
Rental properties often don’t have much of a landscape because of the chance that the tenant is not willing to maintain it, but sometimes it’s about the standards you set as the property owner to influence the tenant. For sure be smart, don’t put something together that takes a painful amount of daily care, go for the low maintenance set-up or install an automated irrigation system or include a regular gardener in your rental price. Tenants love an outdoor space, but more often than not, they aren’t keen to maintain it, so give them incentives to do so, which will also help your potential growth in value into the future.
Future Proofing Your Property
There’s charm and character, then there’s dated and disliked, be sure to identify the state of your investment property. The modern home is more likely to feature an open plan layout or an ensuite with the main bedroom and these are often strong factors in renters’ decision making. You’re likely to be better off engaging in a significant revamp before putting your property back onto the rental market than waiting weeks, maybe months for a potential tenant to appreciate your property at a reduced rental price.
As much as we try everything in our power to get the perfect tenant, sometimes you don’t always get so lucky. If you’ve upgraded with new appliances or modern finishes you’ll want to be extra safe knowing that your recent renovation will be looked after by your new tenants. Investing in landlord insurance can take away some of the stress from the experience and cover you for things that could go sour. Landlord insurance covers everything from property damage or loss, theft or repairing furniture to unpaid rent.
All in all, you need to think about the modern renter, what they desire and how it has changed over time. Look to satisfy that market but also add value to your own asset. Playing it smart, investing where required and staying on top of the game will keep your investment property tenanted and the financial returns stable. For tailored advice on your investment property situation, contact one of our friendly team at Besser and Co. today.