What attracts quality tenants?
With housing affordability in sought-after areas a challenge for a lot of families, people continue to rent their dream home so they can live the life style that they want. They do this while they either buy somewhere else (rentvesting) or, they often are still trying to save in order to buy a place of their own one day. For families in particular location is important not only for work, but for schools and amenities and in particular, for those looking to create roots in a certain area. Making your investment a vision for prospective tenants will help you attract good, hopefully, long-term renters. Long term renters are a better investment because of course, this means less vacancy, less letting fees and a secure income. Here we have a few things that you can do to make your investment a dream home for prospective tenants.
A little spending goes a long way
Sometimes it seems counterintuitive – but the saying ‘It takes money to make money’ is valid here. If you’re an investor who is reluctant to spend any money on your property, then you could be missing out. Tired homes that show they’re not maintained take longer to lease, and often they attract not the highest quality tenants.
If you don’t look after the house, it may be vacant for longer between tenancies and be unable to keep up with market growth in rental prices in your market. By spending money on some simple things, not only is it generally tax deductible (speak to your accountant) but, you make it back by leasing quicker, at a higher rent! Make your investment stand out amongst the rest.
Buy quality appliances
High-quality appliances with a good warranty – will cost a little more to start with, but these items tend to have a longer life and less risk of frequent breakdowns. (Tenants do actually notice no name brands and occasionally comment on it)
Go minimal and classic
It might be tempting to buy fancy and modern fixtures – but make sure you keep it simple. A good example is those fancy kitchen taps with a hose that allows you to wash dishes better… if you’ve got a dishwasher, it’s not really going to make much of a difference and the amount of these we’ve had to fix because they’re too heavy for the sink, or the hose leaks – they’re just not worth it! This type spending may go to waste if the items look dated in a year. Stick with minimal and classic looks with fixtures such as downlights and clean, classic ceiling fans (if you need those).
A fresh coat of paint for example can really uplift a property – it may not be needed throughout the house, but if you have some rooms where furniture has been against the wall, sometimes it can be worth while fixing this up to make it look cleaner! Don’t go crazy, we don’t mean feature walls in every room here, we often don’t want to stand out that much!
Keep it simple
Just like the above example, stick to the minimal and classic theme, make sure your property is a clean and bright blank canvas for prospective tenants to make their own. Resist the temptation to overly design the spaces in your property or furnish it (unless that’s appropriate for your space). Just because you loved your fancy international curtains that you had installed specifically to fit your décor, doesn’t mean tenants will appreciate the same style.
Cooling and heating is important
Just because you’re not living in it doesn’t mean you can cheap out in this area, you may not be too fussed about whether your property has heating or cooling but for prospective tenants, however, this can be a deal breaker. Heating is now a minimum requirement in Victoria, but, where you can, provide built-in heating and cooling. A split-system air conditioner in main living areas, and possibly he master bedroom if the budget allows (if not ceiling fans are also appealing), will go a long way in providing comfort while ensuring your property attracts, quality tenants faster.
Dress to impress!
Just like buying a home, prospective tenants want to walk into a property and be impressed. They want to be able to see themselves living in the property. If your property is currently tenanted and they are on the messy side – its often worth waiting until it is vacant (we invite people to pre-apply then take them for a private inspection as soon as possible for example) or, you could offer to have a cleaner come to the property for free a day or two before the inspection. Thinking outside the square here can help you and help your vacating tenant.
Attracting quality tenants can feel like an uphill battle at times, but with some careful spending on your investment, you’ll have a higher likelihood of making your property stand out which will only benefit you in the end.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.