Tapping into the mindset of renters allows savvy investors to maximise their returns.
And while affordability, location and lease length are key drivers for tenants, they are also looking for somewhere safe and comfortable that will feel like home.
Knowing what type of features are popular in your area can attract the right person for your investment property. Ultimately, you want someone living there who will look after the home as if it were their own.
It is important to highlight such inclusion in any advertising so it will stand out from the competition. Let’s take a look at what inclusions are likely to win over prospective tenants.
1. Pet Friendly
With more Australian households owning a pet than not, it makes sense for landlords to be accepting of a tenant’s furry family members.
Data released by realestate.com.au found the most frequently searched keyword for rental properties is ‘pet friendly’.
There are many advantages such as making a property more attractive, broadening the pool of potential renters and increasing returns.
“Pet owners can make wonderful tenants as they are likely to stay in a property longer and take issues such as garden maintenance very seriously,” she said.
“There are quite a few things you can do to protect your property if you are concerned, you can make it a condition that the tenant has the carpets steamed clean every year. Some tenants even prepare a pet resume detailing the breed and any behaviour training which can be reassuring.”
2. Fully furnished homes
Another top keyword when it comes to rentals, particularly for apartments is ‘furnished’. Fully decked-out properties including everything from beds to kitchen utensils can attract a wider range of occupants such as corporate clients, ex-pats, students and young professionals.
Furnished rentals are popular in suburbs close to universities, city centres and coastal areas where tenants are more likely to stay only short-term.
While such properties are more expensive to lease, tenants make a saving as they don’t need to move anything in with them – except their own belongings. Everyday items such as a lounge, dining table, chairs, desk and appliances are typically included along with soft furnishings.
Ms Brown believes as demand for flexible living arrangements continues to grow, furnished rentals could be a growing sector of the market to watch.
“It could prove to be a strategic choice for maximising returns and meeting market needs,” she said.
Talk to your property manager about your individual property and whether they think you will do better with a furnished or unfurnished place.
3. Air-conditioning and heating
Australian homes can become very hot in the summer, and while there is currently no obligation for landlords to install air conditioning, there is a market expectation.
The Victorian State Government is currently considering making such an inclusion compulsory. They are the only state with mandatory heating regulations. In the ACT, homes must meet minimum energy efficiency standards for ceiling insulation.
Fixed fans and fly screens are a cost-effective way to improve ventilation and are inclusions rated highly by tenants.
4. Outdoor Entertaining
A legacy of the pandemic, renters value being able to connect with the outdoors for both entertaining and relaxation. Whether it is a courtyard, balcony or a covered terrace overlooking a backyard, being able to access their outdoor space is highly rated.
Leasing consultant Tiffany Acevski from LJ Hooker Bankstown | Moorebank said there are few rental homes with pools in her area and when they are listed, they attract a lot of attention. While tenants will need to be responsible for most of the maintenance, it is a trade-off many people are happy to make to beat the heat.
“People do love a pool because we are far from the beach, and it can be a real attraction for families in our area,” she said.
5. Home office
The popularity of remote or hybrid working arrangements has seen an increasing demand for rental properties with a dedicated study space. A built-in desk, a spare room, or a nook suitable for working from home can make a property stand out in the market.
“People are returning to the office but there is still the demand to have a dedicated space at home where they can work a couple of days per week,” Ms Brown said.
Tenants are responsible for organising their own telephone and internet connections. They can check if it is already connected to the NBN at telstra.com.au/broadband/nbn and type the address in the box.
6. EV chargers
More tenants are looking for energy-efficient homes that have sustainable features, such as solar panels and places to charge electric cars. Other eco-features such as double-glazed windows and greywater recycling systems are also highly valued as they can help to reduce electricity bills.
“As technology becomes more integrated into daily life, tenants are increasingly drawn to properties with smart home features like keyless entry, security systems, and energy-efficient lighting,” Ms Brown said.
7. Updated Kitchen
A sleek kitchen is a major drawcard for tenants who will be keen for modern appliances, stone countertops and plenty of pantry space. If your budget doesn’t stretch for a full makeover, consider simple updates such as new splashback tiles.
Open-plan layouts that blend the kitchen with living areas are also highly regarded. “Dishwashers were once seen as a luxury item but are now considered a standard inclusion,” Ms Brown said.
“Without one, landlords have to attract a tenant willing to wash up by hand because, given a choice, people will always opt for a property with features that make life a bit easier.”
8. Bathrooms and ensuites
Older-style bathrooms that are clean, hygienic and functional are often accepted by tenants. But they may not be so flexible if there is no ensuite in the master bedroom – particularly for couples or housemates sharing a property. Not having a freestanding bathtub will also reduce the pool of potential renters, particularly families with young children.
9. Storage
Built-in wardrobes are also seen as a practical necessity for most tenants, and not having them can be a deal-breaker. Adequate storage for linen and general household items is also seen as a plus by tenants.
“Investing in storage, particularly built-in wardrobes, is a worthwhile investment for landlords as it not only makes a property more appealing but is likely to add value when it comes to selling,” Ms Brown said.
10. Parking
Access to a garage is a big win for tenants, particularly in suburbs where finding a parking space can be tricky. Ms Acevski said renters do not want to be leaving their vehicles on the street. Instead, they want a designated car space or a secure lock-up garage with remote control access. Additionally, properties with extra storage space for bikes, tools, or seasonal items are highly desirable.
“If it is a house, then people usually want a double car garage with internal access into the home,” Ms Acevski said.
“Apartments in our area usually only come with one car space, but we always get requests from people looking to store more than one vehicle. The streets can be pretty busy, and it can be hard to find parking so anything with a double garage goes very quickly.”
Highlighting these features in property listings can make your property more appealing and ensure it stands out from the competition. Your local LJ Hooker property manager can provide insight into what types of properties and inclusions are popular in your suburb. Book a free rental appraisal here.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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