What are renters looking for in a home?

Property investors are back in the market on the hunt for bricks and mortar to prop up their investment portfolio.
 
Lending figures have reached a six-year high as investors look forward to the prospect of interest rate cuts around the corner.
 
Landlords are charging an average rent of $745 per week in Sydney and $535 per week in Hobart. But knowing just what the 2.4 million renters want in a rental is crucial.
 
Like most, renters want a safe, clean and affordable place to call home. With the rising costs of living and our busy lifestyles, low maintenance is top of the inspection list, according to Victorian estate agent Kelly Marks, of Marks Property Specialists.
 
Kelly recommends speaking to local property managers if you’re in the market for an investment property. ‘Ask what prospective renters are looking for to make sure you purchase something with desired features to make for a smoother leasing campaign.’

A good first impression.

Experts say landlords need to take the time to consider how to add more value, put tenants first and look at how your property can be a cut above the rest.
 
It’s about keeping up your side of the bargain. Making sure the place is clean, responding to maintenance requests quickly and hiring a property manager to take the pressure off, advises the principal of The Rental Specialists in Sydney, Jo Natoli.
 
‘A good property manager will know what expenditure will result in a return on that investment, and what won’t yield a return,’ she says.
 
Some new properties to market only need new blinds, or a lick of paint. One client changed the flooring, painted throughout and installed new blinds, costing them $11,000, which yielded an extra $50 a week in rent.
 
‘I had a client who only needed to paint some kitchen splashback tiles and change the curtains in a living room, and it resulted in an additional $30 per week in rent,’ Jo says.

Home alone. 

There’s been a big decline in the average household size since late 2020, partly driven by less of us being willing to share. It means we need more homes despite population growth being low in recent years.
 
The good news is that investors don’t have to buy a big house in the burbs to enter the property market. A smaller unit in an inner city apartment could be just what renters want.
 
In fact, markets with affordable apartments, including inner-city Brisbane, Melbourne and Sydney have been named sectors to watch by Hotspotting director, Terry Ryder.
 
Jo notes strong demand for one-bedroom properties around the city fringe and universities around Sydney, while renters looking in Western Sydney want good quality three and four bedroom homes suitable for families.

Make an impression.

Make sure your property pops. It doesn’t have to cost much. A quick trip to Bunnings for supplies to freshen up the front yard, paint the front door or change a few light bulbs can make all the difference.
 
A large pot on either side of the front door with bright colourful plants and a new front door mat can make the place feel like a home from the moment your tenant walks in the front door.

And hire a professional cleaner while you’re at it.

Update the kitchen or bathroom.

A spotlessly clean bathroom and kitchen is everything, so get rid of that awful curtain that sticks to you while you’re in the shower and add in a glass shower screen instead. Replace the oven and consider whether it’s time to replace the splashback in the kitchen or tiles in the bathroom.
 
While you’re at it, make sure the laundry is a clean and usable space with a benchtop and decent lighting. You know, the standard stuff. 

Location, location, location.

Surveys show that 72 per cent of tenants say location is among the top three considerations in selecting a rental property.
 
‘Renters always want to be close to transportation, shopping, food and entertainment,’ notes First National Real Estate agent Allison Holzer.
 
While you’re at it, off-street parking is a huge bonus, especially if your rental is inner city. LJ Hooker recommends that landlords consider the possibility of adding a driveway or carport.
 
Access to beaches, national parks, views, larger backyards, penthouses, pools and gyms in the apartment complex is also a big-ticket item for renters. And why shouldn’t it be? You deserve it all!

A home office.

We’re all working from home more, so look at how to make the most of your rental so that tenants can open a laptop in comfort.
 
It won’t cost much to install a sturdy wall-mounted desk or study nook with a couple of open shelves above in a corner of a room, but it can make a huge difference to a potential tenant.
 
Holzer adds that high speed internet is considered all part of the package these days. ‘Flexible work arrangements demand great internet service and speed for all,’ she says.

A life with pets.

We can’t live without our pets, with ‘pet friendly’ topping the list as the most searched keywords by renters in the past year, according to realestate.com.au.
 
But it’s not easy for renters, with one in seven landlords allowing a pet in their property, despite more than two-thirds of Aussie households now having a pet.
 
The clear demand suggests an opportunity for landlords to supply more pet-friendly rentals, so consider if you can be more open-minded when it comes to allowing pets in rental properties.

Some creature comforts.

Damn, it can get hot in the summer. So, no surprises that air conditioning is a common search tool for renters. Consider if installing a split system could help you secure a truly cool human to live in your investment property.
 
Realestate.com.au research has also found that furnished properties are also hugely popular among renters, particularly in inner-city locations, which have also experienced strong rental growth over the past year.
 
The size of the property is the second factor on the list, while outdoor space, internal storage and whether the property comes with appliances like heating/cooling and a dishwasher rank next on the list for many tenants.

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