Most of my clients ask me to find a ‘Professional’ to occupy their investments however what type of Tenant does your property attract? If you have a run down property far away from preferable amenities this type of Tenant would not apply; in reality you would be likely to attract students or low income Tenants.
Typically and there of course can be variations to this, the features that the following types of Tenants want and level of rents that they can pay are as follows:-
Professional – Low maintenance, modern, close to lifestyle amenities and high employment areas, most likely to pay mid to high rental levels.
Family – Larger style properties, backyards, garages, close to schools, usually can afford mid level rents however can also fall into low and high categories depending on location.
Student/Budget – Cost driven, close to universities and transport, will consider/be only able to afford older, less maintained properties further away from amenities. Typically can afford low to mid budget levels.
It is very common for an investor to have had a property for 5-10 years and only carry out minimal work over that period, however with the influx of new properties Tenants are becoming more and more selective over the type of property they want to live in. Almost all Tenants are looking for the same thing, regardless of the style, size or property type they are looking at be it a house, unit or apartment, this is for something clean, neat, preferably modern and close to relevant amenities.
If your asset does not target your preferred style of Tenant, proactively managing and investing in your asset is important to give you the best opportunity at attracting high caliber Tenants regardless of the category they fall in.
With the vacancy rates in Melbourne currently at 3% and a significant number of properties set to come on the market with new developments, investors need to take steps to make their investment property stand out from the rest.
The next time you purchase an investment consider who will rent your property and what type of Tenant you want to attract. If your investment currently does not have your preferred type of Tenant now, ask yourself and your property manager what can done to change this in future.
For queries on the sale or management of your properties please feel free to contact us.