As with any business venture, you need to consider your target audience when you determine the products and services that you’re going to offer.
It’s no different in property, and as an investor you need to consider who your target tenants are each time you make an investment.
A good idea when defining your audience is to reverse engineer what the tenant wants, so in this article we’ll look at things from a tenant’s perspective…
Different areas attract different types of tenants. Clearly a more expensive area will attract more affluent tenants, but what about the micro factors that could make your property more attractive to your market…?
Are there good schools nearby? What is the crime rate? Are the roads particularly busy, what are the transport links like? Are there plenty of amenities and things to do in the neighbourhood?
Different tenants will want different things and it’s important to consider this, not just the property itself.
Is the size, layout and property type suitable for your target tenant? Would it attract families, young professionals or retirees?
Is it in a suitable condition or will you need to fund a large refurbishment? Terraced properties at the lower end of the market don’t need to be as high specification as city centre apartments for example.
Consider the lifestyle of your target tenants, not just the space that they will need.
Check the security of the property itself of course, but don’t forget to consider the safety of the property given the area that it’s in.
If it’s a terraced house with a rear yard and an alley at the back, is the alley gated at both ends? If it’s an apartment, is the complex secure enough? These things are likely out of your control, so consider the implication any lack of security could have before you make your investment.
Neighbours are another thing you can’t control, but you still need to do some due diligence.
Problematic or anti-social people living in the area can really impact the demand for your property. Knock on a few doors or go and check out the street at different times of day and on different days of the week to get a feel for the immediate surroundings.
Whilst families may want a large garden, young professionals probably won’t. They will want a low maintenance property. This is another important factor to take into account when you’re considering what your target tenants want and the suitability of any new investment property.
If you’re targeting the retired community, they’re not going to want to climb stairs to reach their humble abode.
What’s the access like for vehicles considering most tenants will have at least one car or van?
If you’re going to be undertaking refurbishment works too, is it easy for builders and their materials to get to site?
Changing the access to the property can be very expensive and will also cost you a lot of time so consider this from the outset.
Are the fixed costs such as council tax and any service charges affordable for your target tenant and in keeping with similar properties?
Is the property well insulated and energy efficient? This can have a large impact on the running costs for your new tenants and something experienced tenants will take into account.
In the modern digital world, and again when considering who your target tenant is, it’s important to factor in things like Wi-Fi speed, mobile phone signal and the type of connectivity available.
Young professionals and most families these days won’t stick around if they can’t get any work done or watch YouTube all day!
Are there any terms that you will be bound by as a landlord that could negatively impact your tenants?
Does your finance lender prevent you from doing anything that would be important to your target tenant, for example?
Consider all legal implications from your prospective tenant’s perspective before you commit.
-Janice Minihan, director and co-founder of Property Deal Store
Thank you for reading and I hope that this helps you on your way to finding the perfect rental property that will bring your ideal tenants flocking in. Why not have a look for your next property today? You can join Property Deal Store for free here and get access to all our available deals. You will also get immediate access to an abundance of resources all designed to help you achieve success in property. Again, these are all free to you as a member.
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Wishing you every success in property,