Property location is as important to tenants as it is to home buyers.
Property location is important to tenants who look to rent in certain areas for specific reasons just as you do when looking to purchase a home. It could be that friends or relatives are nearby or just that the amenities offered in the area suit their lifestyle.
If you rental property fits their criteria tenants are more likely to be long term so finding what they are looking for will also give you an insight into what boxes your property ticks.
Why is it important to know what tenants want to rent?
Knowing the priority list of prospective tenants can give you an idea of whether they are likely to be long or short term tenants, a few pointers are given below.
Schools in the area
Obviously this will show the family has children and probably that they are looking for a property in a certain school’s catchment area. If this is the case they are more likely to stay put so their child can remain at that school.
Distance to work
The further a tenant lives from their work the greater the transport costs and inconvenience/time of travel each day. If they can minimise travel time the more family time is available hence properties nearer the city tend to be more expensive than the outer suburbs.
Social people
If restaurants and night life are important your property’s proximity to these amusements will be a factor.
Family connections
It is not uncommon for family members to settle together in a certain area as this means they can help each other if an emergency occurs, or even to look after pets during holidays. These tenants are more likely to be long term.
Friends and relations
If the prospective tenant grew up in the area and still has friends or family there then they are more likely to stay longer.
Work relocation
Usually when this is involved the tenant will have a limited amount of time to find a property and will need to make a quick decision otherwise they may find themselves paying for motel accommodation.
Rental sales
Their current rental is being sold or the landlord has another use for it: Again this gives the prospective tenant a limited amount of ‘looking’ time as they will have a date to be out of their current property so will need to make a decision quickly.
If a tenant cannot give a reason for looking at rentals in your area this is not a good sign for a long term tenancy. Short term tenancies are very time consuming as the process has to be gone through time and time again. If, when you look through their application, they don’t have any sort of reason for wanting to live in your area then it is more than likely they will move on in a shorter time as there is nothing to hold them there. You may be better served by choosing another applicant.
The application form for prospective tenants can give you a lot of information and if some answers appear vague they should be followed up with questions at the interview. You are looking for the best and most long term tenant you can get and if the applicant is really serious about your property they will do their best to convince you to choose them and a good tenant will be able to back this up with references etc. which will prove they have been good tenants in the past.
Barry Bridgman has been managing his own investment property portfolio for 25 years. During this time, there has never been any occurrence of rent defaults or property damage and Barry’s goal is to achieve the same for your property. Bridgman Property Management is based in Auckland Central, where Barry has lived for more than 18 years.
