What do tenants look for in a rental property and how to retain them

Young family moving into their new rental property

First published 16 January 2025

Attracting and retaining quality tenants is vital for ensuring steady cash flow and reducing the risks associated with property investment. You can attract great tenants with a well-suited property and retain them through regular maintenance and prompt issue resolution.

This article examines what do tenants look for in a rental property, explores effective strategies for attracting quality tenants and offers practical tips on how to retain them, helping property investors enhance their property's appeal and secure long-term rental income.

Key take-out

  • Meeting tenant needs is essential for attracting quality tenants: It’s crucial for landlords to offer well-maintained, convenient, and comfortable properties.
  • Clear communication and responsive property management help retain tenants: Providing a clear lease agreement, regular maintenance, and timely responses to tenant requests fosters trust and encourages long-term leases, reducing turnover.
  • Property upgrades offer dual benefits: Enhancing your property with modern features and energy-efficient improvements not only attracts tenants but also provides significant tax benefits through depreciation, improving overall cash flow.

What do tenants look for in a rental property?

When it comes to attracting quality tenants, understanding what they  look for in a rental property is key. Whether it's location, amenities, or modern features, tenants seek homes that align with their lifestyle and provide comfort, convenience, and security. The following key factors will help ensure you attract quality tenants.

  • Location: Tenants prioritise location based on their lifestyle needs. Families seek proximity to quality schools, parks, and safe neighbourhoods, while retirees prefer quiet, well-serviced areas near healthcare and leisure facilities.
Professionals look for properties close to work, public transport, dining, and entertainment. Essential services like grocery stores and fitness centres also play a role, as does the neighborhood's overall vibe – whether quiet and residential or lively and urban.

Tip!

When deciding where to invest, consider the type of tenant you aim to attract and then align your investment with their lifestyle needs.

Parking:

Parking is a key convenience for tenants, especially in space-limited urban areas. Off-street options like driveways, garages, or designated parking spots provide both ease and security, reducing the hassle of street parking and the risk of damage or theft. In busy or suburban areas, secure and accessible parking makes a property significantly more appealing to renters.

Storage:

For many tenants, having ample storage space means a clutter-free living (and sometimes working environment), which enhances overall comfort and functionality. It allows for better management of space within their homes, helping them maintain order and reduce stress.
Provide additional storage options, such as built-in wardrobes, sheds, or secure bicycle storage, to appeal to tenants looking for more space.

Security:

Tenants want to feel safe in their home, which means secure locks on doors and windows. Adding features like interior latches, deadbolts, security screens, or alarm systems can make your property more secure and attractive to safety-conscious tenants.

Easy maintenance:

Low-maintenance properties are highly appealing to tenants. A well-kept home with durable fixtures, easy-to-clean surfaces, and minimal upkeep is a top priority.

Outdoors, most tenants prefer simple landscaping, like drought-resistant plants, over complex gardens. Indoors, they value durable flooring, modern appliances, and easy-to-clean bathrooms.

Pets:

Allowing pets in your rental property can greatly expand your tenant pool and attract long-term renters. Many families and young professionals view their pets as part of the family and prioritise pet-friendly housing.

By accommodating pets, you not only meet this demand but also foster tenant loyalty, as pet owners often pay higher rent and stay longer to avoid the hassle of finding another pet-friendly home. Establishing clear guidelines and a reasonable pet policy ensures your property remains well-maintained while keeping tenants satisfied.

Modern or upgraded features:

Updated kitchens, bathrooms, and overall modern amenities. Investing in energy-efficient appliances, contemporary lighting, and quality fixtures in the kitchen and bathroom can significantly enhance the appeal of your property.

Energy efficiency:

Installing better insulation, double-glazed windows, or energy-efficient heating and cooling systems can make the property more attractive to tenants concerned about utility costs.

Usable outdoor areas:

Even small balconies or patios can be transformed into inviting spaces with some thoughtful landscaping, seating, or garden boxes. For houses, consider adding or maintaining a well-kept garden or backyard.

By focusing on these key factors, you can ensure your rental property stands out in a competitive market.

How to retain quality tenants

Retaining quality tenants is just as important as finding them. A stable, long-term tenant helps maintain consistent cash flow, reduces turnover, and minimises the costs associated with vacancies. To keep good tenants happy and encourage them to renew their lease, landlords must prioritise clear communication, timely property management, and creating a living environment that meets tenant needs. The following strategies will help ensure tenants remain satisfied and stay for the long term.

A fair and clear lease agreement:

This is essential to establishing a strong relationship with your tenants. Ensure the lease outlines all terms, including rent, maintenance responsibilities, and rules, in straightforward language to avoid misunderstandings. Offering varying lease terms - such as month-to-month or longer-term options - can cater to different tenant needs.
Flexibility and transparency in the lease process not only build trust but also encourage tenants to stay longer, reducing turnover and vacancy rates.

Regular maintenance checks:

Conduct regular checks and promptly address any maintenance issues to keep the property in top condition, which can prevent costly repairs in the long run and keep tenants satisfied.

Privacy:

Tenants also appreciate landlords who respect their privacy by providing adequate notice before inspections or maintenance visits and allowing tenants to coordinate times for any necessary repairs.

Responsive property management:

Tenants value clear communication, prompt responses to maintenance requests, and transparency about policies like rent increases and inspections.

A property manager who is approachable and reliable helps build trust, ensuring that issues are addressed quickly and efficiently. This responsiveness not only keeps tenants satisfied but also encourages long-term leases and reduces tenant turnover.

Tip!

To find a good property manager, seek referrals, verify credentials, and review their track record on tenant satisfaction, vacancy rates, and maintenance handling. Conduct interviews to ensure clear communication, transparency, and knowledge of local rental laws.

Connectivity:

If possible, provide access to high-speed internet or at least ensure that the property is connected to a reliable broadband service, especially important for tenants working from home. And if the property is in an area with poor mobile reception, consider installing a signal booster to ensure reliable phone and data services.

By making these adjustments, landlords can better align their properties with current tenant preferences, leading to quicker rentals, higher tenant satisfaction, and potentially increased rental income.

Tax depreciation

Upgrades to a rental property can significantly enhance its appeal to tenants, but they also offer substantial tax benefits through depreciation. When you make improvements such as renovating a kitchen or installing new flooring, these upgrades can be depreciated over time, reducing your taxable income.

Tax depreciation allows you to recover the cost of these improvements gradually, offsetting the initial investment. By claiming tax depreciation, landlords can increase their cash flow, making property upgrades not only a tenant attraction strategy but also a smart financial decision.

For more on maximising your property's appeal and depreciation benefits, contact BMT Tax Depreciation to order a depreciation schedule. Call us today on 1300 728 726 or Request a Quote online.

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