The current rental property market is fierce, making it harder to find the quality tenants for your investment property amongst the applicants. Quality tenants mean a consistent cash flow, long-term leases and lower risks of tenant-related property damage.
Holding a property that has what tenants want in a rental is what will help you land the perfect tenant.
10 things quality tenants want in a rental property
Tenant location demand largely depends on your tenant target market. So, this is where it pays to do your research before buying your next investment property.
If your ideal tenant is a working family, then a family-friendly location with ample schooling options in the school zone should be your priority when narrowing down the location of your property.
But if your target market is working professional singles or couples, then urban convenience should be top of your list.
2. Maintenance levels
Manageable maintenance levels of a property is a win for you, and often for your tenants.
This means that while an immaculate garden with exotic but needy plants may look great, it’s not favourable for tenants without a green thumb. The same applies for the indoors, you want areas like the bathroom to be easy to maintain and clean and the floor covering option needs to withstand high levels of traffic.
There’s a long list of high maintenance vs low maintenance features of a home. The key takeaway here is to go with the option that’s going to make it easier for yourself and your tenants.
3. Security and privacy
When your tenant feels the rental is like home, they will treat it that way.
This means they need to feel a level of privacy. Try doing things like giving plenty of notice before scheduled inspections and allowing them to organise times with any required tradesperson.
Then comes security. By this we don’t mean security cameras in every corner, alarms and high barbed-wire fences. Getting the basic security features will help your tenant feel more at home. This includes sturdy locks on doors with the option of an interior latch, lockable windows and security screens.
Luxury in built-up urban areas comes in the form of off-street parking.
While a driveway is dependent on the space you have, you should always offer it as part of the rental if possible. The convenience is a sure-way to attract tenants in competitive urban areas.
5. Little details that makes it feel like a home
It’s the little things that count when it comes to rentals and attracting the quality tenants. This means avoid the stereotypical rental property features like painted-shut windows and dodgy DIY repair jobs.
Having the property move-in ready with no need for repair should always be at the top of your list before leasing the property. While the upfront costs may seem to outweigh the benefits, it’s important to remember that repairs are 100 per cent tax deductible in the same financial year if the property is genuinely available for rent. If the repairs are completed before the property is available for rent, they can be depreciable as part of a capital improvement.
6. Approachable landlord and property manager
Clear lines of communication and transparency are essential when it comes to getting and keeping quality tenants.
This is where you need to count on your property manager. Communication is key at the very beginning to ensure expectations with your tenant are met. Factors like repairs also need to be dealt with in a timely manner to keep your tenants happy.
Transparency around considerations such as rent increases and inspection requirements are also important for any tenant-owner relationship. When this is done correctly, reliable long-term leases are often obtained.
Incorporating storage with the property will make it more comfortable for your tenants.
This applies to both the indoor and outdoor areas. Providing an area outside the living space where possible, like a storage shed, can go a long way in terms of tenant-appeal.
A big deterrent for rentals is when the owner is using part of the property, like the garage, for their own storage and making it unavailable to the tenant. It’s understandable given they own the property but it’s equally as important to allow the tenant to use the property like it’s their own.
8. Heating and cooling
Australian summers can be unforgiving, while winters in some areas can come as a body-shock following the warmer months.
Ensuring your property has adequate temperature control is something that will draw tenants in. This means well-suited ventilation to the environment and investing in assets like air-conditioners and heaters to make it a more comfortable place to live.
9. Natural lighting
Natural lighting is a healthy way to enjoy the indoors. It can lower electricity bills and bring warmth inside even in the depths of winter.
Lack of natural lighting can be inevitable due to the property location, but where it can be helped it should. From the first inspection, natural lighting can make a big impact on prospective tenants.
This means providing window coverings that can provide privacy and the option of natural light – like venetian blinds instead of heavy block-out curtains. Or if you are planning on building your next investment property, strategically place windows where they can take full advantage of the sunlight.
10. Modern or upgraded
Style preferences change, but generally tenants like to have ‘nice things’ and a space that doesn’t feel outdated.
This doesn’t mean only purchase brand-new investment properties – we know realistically this isn’t always an option. But upgrading areas of the property that will add to the tenant-appeal factor can be worthwhile, such as renovating a kitchen, bathroom or removing old carpet and replacing it with new floor coverings.
Tenant-appeal isn’t the only benefit of new or upgraded properties. You will also benefit from heightened depreciation deductions.
New properties produce higher depreciation deductions in comparison to their second-hand counterpart. Meanwhile, any renovation you complete will unlock further depreciation deductions each financial year from the newly installed assets and improvements.
To take advantage of both of the depreciation perks, a tax depreciation schedule prepared by a specialist quantity surveyor is a must. This schedule will last the lifetime of the property and can be easily updated when improvements are made.
To learn more, contact BMT Tax Depreciation on 1300 728 726 or Request a Quote.