Want to Attract (and Keep) a Good Tenant? Here's What They Look For.
If you’ve made the decision to invest in property, it’s likely that you’ll want to maximise your returns AND receive a reliable rental income. And the best way to do this is to attract good tenants.
But what defines a ‘high quality’ tenant?
Ironically, it’s not always someone who offers to pay the highest rent. A top dollar lease agreement is all hunky-dory until you find yourself constantly chasing payment through the SACAT housing tribunal.
In reality, a good tenant is actually someone who pays their rent on time, looks after your property and signs a long-term lease. A little less glamourous, but a whole lot more reliable (and profitable) in the long run.
So once you’ve identified the type of tenant you want, how do you go about attracting them?
It starts right from the beginning, even before you’ve found the property you’ll eventually buy.
Because knowing what a good tenant wants will make your search a whole lot easier.
And once you’ve found said property? There’s plenty you can do to make it even more appealing.
Here we share the top things our experience tells us good tenants look for - plus a few things that will keep them renewing that lease for many years to come.
Location, location, location.
They say location is the first rule of property, and ‘they’ are right.
Because having a property in a good location means it will be far more attractive to prospective tenants.
So what’s considered a ‘good’ location?
Should you find a tranquil little hideaway in the bush, or a luxury esplanade apartment? Both sound like incredible places to live.
Although there would definitely be tenants seeking those kinds of properties, the pool would be limited. What constitutes an ideal location for owner-occupiers doesn’t always translate to rentals, nor help with your quest to find suitable lodgers.
More often than not, tenants are looking for convenience in a location that will meet their needs and support their ideal lifestyle.
So what things matter most? Often the basics stack up best, including:
✔️ Safe, family-friendly neighbourhoods
✔️ Easy access to public transport or major travel routes
✔️ Close proximity to reserves and parks, restaurants, cafés, shops and sporting or leisure facilities
✔️ Near to quality schools, healthcare, workplaces and town or city centres
Safety & peace of mind.
Everyone wants to live in a safe environment. So choosing a property in a town or suburb that’s got a low crime rate is always a good start.
But you can also help tenants feel secure by installing sturdy locks, extra security doors and roller shutters, ample lighting and an alarm system.
It’s getting hot in here.
This one’s a no brainer. Climate control!
Considering Australia’s weather extremes, if your property has no (or insufficient) heating or cooling, it will be much less attractive to tenants.
And if you do manage to snag one? It’s fair to say that one heatwave or cold snap in, and they’re probably not going to want to stay.
So make sure you’ve got the basics covered.
If your property doesn’t have any sort of climate control, look at installing a reverse-cycle split system, combustion heater or ceiling fans. Or go all in and have a ducted system fitted.
Not only will it go a long way to keeping your tenants happy, they’ll often be willing to pay a premium for them. (Plus, the overall value of your property will likely increase too!)
Clean, tidy & move-in ready.
It goes without saying that most people want to live in a clean, uncluttered and orderly space. And tenants are no different.
A property that’s clean inside and out, offers a low-maintenance existence, is properly maintained and presents well is undoubtedly going to attract great tenants that are happy to pay more for a nice home.
Not only that, but someone that seeks out a well-kept property is also more likely to keep it that way.
So when choosing an investment property, take these things into consideration.
Either buy a property that’s already in excellent condition, or make sure you’ve got the spare funds to renovate or replace anything that might be old or worn out.
And if repairs are on the cards? Make sure they’re done before you advertise your property. Because the thought of major disruptions - replacing carpets, repainting or rebuilding - may be enough to send tenants running for the hills.
Furry (or feathered) friends.
While everyone’s heard horror stories about pets in rentals - and there are obvious risks involved - don’t write the idea off straight away.
Why? Because if you do, you might just miss out on snagging some excellent tenants - and it can actually cost you cash!
Because there are so few properties that allow pets, tenants are often willing to pay a premium - and sign a longer lease - simply for allowing their four-legged friends to stay.
Not only that, but there are a number of ways to make sure your property is protected in a worst-case scenario.
Landlord’s insurance - that you should have regardless - will usually cover any damage caused by an unruly pooch, feisty feline or petulant parrot.
Plus, a solid lease agreement will ensure the tenant picks up any pet damage repair bills before they move out.
Functionality.
People spend a lot of time in the kitchen. And the bathroom. And the laundry.
So it makes sense that properties that offer an easy existence are going to be popular amongst tenants.
But which features rank highest?
✔️ Space - while an echo is unnecessary, kitchens and bathrooms that offer room to move will always appeal. Plenty of bench space, a breakfast bar and ample room to meal prep are all a huge plus.
✔️ Storage - plentiful cupboard, pantry and linen storage to stow appliances, supplies and sheets is always a big tick.
✔️ Appliances - ovens and cooktops usually come standard, but if your property is fitted with new models, or even offers a little luxury like a dishwasher or dual cooking, it will tempt the very best tenants.
Outside matters too.
With Australia’s enviable climate, many tenants will be searching for properties that allow them to make the most of it.
Whether that’s a backyard big enough for kids and pets to play, a courtyard to host weekend BBQs or even just a small patio or balcony where they can relax, unwind and get some fresh air, the value of outdoor space can’t be understated. And if it’s low maintenance? Even better.
Plus, given 92.5% of Australian households own a car*, it’s wise to consider buying an investment property that offers secure, off-street parking - or is, at very least, located in an area with plenty of kerbside parking options.
And finally… good landlords!
Once you’ve snagged a good tenant, keeping them happy - and in your property - should be high on the agenda.
Why? Because a tenant that both pays rent on time and looks after you property truly is landlord gold.
No matter what, it pays to remember that it’s a two-way street, and the key to any successful tenant/landlord relationship is courtesy and respect.
Being as considerate and cooperative as possible, keeping the property in good repair and ensuring a little give and take where appropriate will attract good tenants that are likely to pay on time, respect your property and renew their lease… and that’s a win/win… win!
A simple rule of thumb? Be the kind of landlord you’d want if you were renting!
*Source : https://www.finder.com.au/car-statistics
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We Connect Property - your Adelaide real estate & property management specialists.
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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.