Unlike purchasing a property for you and your family to live in, investment purchases need a different thought process and should be approached with your head and not your heart. Some of the features that you may value in your own home, may not necessarily appeal to potential tenants. You need to think like a tenant and buy a property that meets their needs. Here are five tips for purchasing a rental that appeals to tenants:
Location is paramount
As with any property purchase, location is paramount. This is especially the case when buying an investment property.
A common tenant requirement is proximity to amenities. Be sure to buy in areas that are close to key amenities like shops, transport and schools. It’s also a smart idea to seek locations that offer a good lifestyle, for example younger tenants generally value living close to thriving hubs, while families with young children will value being close to parks and kid friendly facilities.
Internal layout
Give consideration to the internal layout of the property you choose to invest in. Many tenants choose to share accommodation, so it’s a good idea to look at properties that have features that appeal to this style of living.
Outdoor areas
We’re lucky in Australia that our climate is warm and favours outdoor living. With this in mind, it’s a good idea to factor in some kind of outdoor area into the rental home you purchase. Whether it’s a balcony, a courtyard or an enclosed alfresco – outdoor living options are attractive.
Parking options
Being able to offer tenants a designated parking space will be very attractive for them. Most homes come equipped with a garage or carport, whereas units or apartments – particularly those in the city – often require tenants to park off-street. A lack of parking options is an inconvenience to tenants, so it’s beneficial to look for investment properties that provide tenants with a secure space to park their car.
Additional features
As an investor, you need to be competitive in the current market to secure a tenant. In order to make your home stand out, it’s worth ensuring the property has some attractive extras like:
While many tenants value outdoor living space, it’s worthwhile choosing a home that is low maintenance. Gardens may look beautiful, but they require a lot of upkeep so it’s best to invest in properties with low maintenance outdoor areas as prospective tenants may be put off by the work required to keep a garden looking good.
Air-conditioning – our long hot summers can be uncomfortable without air-conditioning. Tenants want to be able to escape the heat when inside, so air-conditioning is often a key requirement.
Quality appliances – modern appliances like ovens, dishwashers and cooktops can go a long way in helping your home stand out.
Digital connections – we live in a technological age, so features like good cable connections for internet and wi-fi and strong mobile signals are increasingly important factors for tenants.