When buying an investment property it is important to purchase a property that will be in high demand with renters and receive premium rent. Every state, region and suburb will have it’s own unique set of desirable qualities and it’s your job as an investor to understand what they are in your target search location.

If you have (or plan to) hire a buyers agent to assist you with your property search, and they are an investment specialist, they will handle this aspect for you to ensure you are targeting properties that are in demand from renters.

Remember, your preferences are not necessarily the same as other people’s. Don’t get caught out buying to your own preferred inclusions. 

This week we follow the journey of one of our Buyer Advocates who is currently searching for a rental for herself, her two girls and fur baby.

“It was an interesting experience inspecting properties with a tenant’s hat on, rather than the “buying hat” I usually wear when inspecting properties for our clients to purchase. Things I thought would matter most didn’t, and things I never thought would be high on the list were”

Let’s take a look at the surprising results

 

Initial Wishlist 

1. Bedroom Size
With two children approaching their teen years, size of bedrooms mattered. If a 3rd bedroom was 3m x 2.5m it was too small for a family with children who were in or about to hit their teens. Whereas that size bedroom is a perfect size for a young family with a new born baby.

A good bedroom size for families with older kids is a minimum of 3m x 3m.

There are areas and property types where a 2.5m x 3m bedroom would be acceptable. Which proves that it is important to understand the demographic of an area.

2. Dishwasher
Busy professionals want a dishwasher. Ain’t nobody got time to hand wash dishes these days! 

3. Heating and Cooling
Melbourne is cold, heating is a must when you purchase a property to lease in Melbourne.

When a property doesn’t have sufficient heating the number of inquiries are reduced which leads to a lower rental return. Equally important, particularly in the western suburbs of Melbourne where it gets very warm, is cooling. In some suburbs, adding a $200 fan can add $5 – $10 per week more to a property and increase the amount of tenant applications so you can choose from a wide range of applicants.

4. Built In Robes & Storage 
Storage is often in short supply for rental properties. Older houses in particular can be lacking in bedroom, bathroom and kitchen storage. Along with this, many homes in Melbourne do not have a garage. 

Including a small shed to your rental property can make a huge difference when it comes to meeting the needs and desires of your tenants.

Building additional shelving and storage in the bedrooms, bathroom and kitchen will always be a hit. You can never have enough storage.

5. Layout
As a single parent with two children, it was important the kids  bedrooms were close to the master bedrooms. This priority is unique to our buyer agents personal circumstances and there would be other families who would prefer the children’s bedrooms away from their own or in their own wing. For tenants sharing with house mates a separation of the bedrooms is considered a positive.

It is important to understand the demographic of the area you are purchasing in for investment purposes so that you can choose the right property for the target rental demographic in the area.

 

Three Surprising Results

 

1. Security 
Our buyers agent expected to be more concerned with security.

TIP – Safety is usually very high on the list from our single female home buyers, and this is the same for female renters.

When purchasing an apartment in Melbourne, be mindful that ground floor apartments can be considered unsafe with female renters. Look for an apartment that has security access. If a ground floor apartment is on your hit list, find one that cannot be accessed easily through the windows or exposed doors. For example, a fenced in courtyard would provide the security a female renter would desire. 

 

2. Kitchen and Bathroom Presentation
While everyone loves a gorgeous new kitchen and bathroom, many tenants won’t pay more for the luxury and this was the case for our staff member.

TIP –  In newer estates and house & land type suburbs in the outer areas, there is a higher expectation for the bathroom and kitchen to be very well presented and near new. The newer the finishes, the better in these locations. 

 

3. Floor & Window Coverings
We know from experience that new or near new window and floor coverings typically command a higher rental return and lease faster. 

Whilst this is true a lot of the time, in this instance, it wasn’t the case.  Our staff member wasn’t concerned with the floor coverings and window furnishing because the other items on her list were of a higher priority to her.

 

Finding The Property Tenants Want

As a smart property investor it is wise to understand the unique and subtle variances for tenant and buyer preferences in each suburb you consider.

Sticking to a blanket approach and the same checklist for every suburb will delay your results and keep you out of the market longer. Learn to be fluid in your approach and adapt to the playing field you are playing on.

If you would like help to select a suburb and property type to meet your investment goals and investment strategy our team are available to assist. 

If you would like to find out more about our buyer advocacy services, contact us using the form below.