What Factors Do Tenants Consider When Choosing a Rental Property?
By David S. Chang
Attracting and retaining good tenants helps landlords to ensure they can make good rental income and that their tenants will take good care of a property. While it’s possible to rent out nearly every property, they don’t all make good rentals. Thinking like a tenant can help landlords to buy properties for rental that attract the best tenants.
The location of the rental property
Location is one of the main factors tenants consider. There is no one-size-fits-all answer for what makes a location the right one – it will depend on the specific tenant. Some tenants may be willing to overlook other less desirable aspects of properties in a specific location. Most tenants want a location close to where they work and to schools, parks, recreational facilities etc.
A long commute to work can be a deal breaker. Tenants with children will want a good education for themselves so the quality of schools in a location is another deal breaker. Where a property is located also plays a role in whether a quality management company will consider managing the property.
For example, If you are interested in rental property management in Denver, you should look for a reputable company in this or any other area in Colorado, including Boulder, Fort Collins or Colorado Springs. The managers working for a professional company know what local renters look for in a property. Therefore, they can assist you in marketing it and attracting quality applicants.
Prospective tenants will usually do their homework when considering a neighborhood to buy in. They are likely to check out the atmosphere during the day and in the evening to see whether it’s too noisy or too quiet for them. Some tenants will want a quiet, peaceful atmosphere, and others may prefer a noisy, friendly vibe.
Tenants will also look at the value and condition of other properties in the neighborhood. They will want to know more about their neighbors and may talk to people in the neighborhood to see if it’s likely to be a good fit for them.
Parking is another consideration, and in some neighborhoods, parking may be more readily available than in others. Tenants will want to know whether they can walk to stores or have to drive.
The amenities available
Public transport, highways, restaurants, parks, leisure facilities, and other amenities will have an impact on the demand for rentals. Lifestyle and convenience for working professionals and their families are becoming increasingly evident in where they choose to rent. A property located close to attractive amenities will mean a larger pool of potential renters and more chance of getting a higher rental price.
The amenities available in a complex, such as a pool or a gym, could raise the demand for units, and landlords could charge a slightly higher rental. However, levies would also be higher, so this would affect the net rental return.
Safety and crime rates in the area
No tenant wants to live in an unsafe area. The safety and security of a neighborhood are powerful motivators for tenants. They don’t want to worry that their homes or cars are going to be targeted by criminals. They will often research crime statistics in a neighborhood before they consider buying.
Landlords must provide tenants with a livable and safe rental home. They can be held liable for criminal conduct on a property if a property isn’t reasonably safe from criminal intrusion. State and local security laws may require specific security measures such as window locks, deadbolt locks on doors, and security lighting. Some will take measures over and above what’s expected to protect tenants and maintain security features to a high standard.
The rental price of the property
Tenants want to live in a property they can afford and choose properties that offer value for their money. Landlords who set rental amounts higher than comparable properties in the same area can have problems with renting out the property. It isn’t worth setting a higher rental price if a unit is going to sit empty when a lease expires. Tenants usually “shop around,” and they will generally skip over a property that’s priced too high in comparison with other properties in the area.
When the rental price is too low, property owners could lose money and have to fund a mortgage payment shortfall out of their own pockets. They need to do some research so they can price a property correctly to rent it out. Including utilities like water or internet in the price could help them to stand out and attract good tenants.
Tenants are least willing to compromise on factors like location and price. If the location and the price are right, they could overlook other factors that they feel aren’t as important. It can help property owners to think like tenants when they buy a property. They need to consider the location, neighborhood, safety and more. This will help them to find the right tenants for their properties.
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