When we talk about what makes a property an ideal rental, we often end up citing factors around the property rather than the qualities of the house itself. Things like location and proximity to amenities are of utmost importance – but it doesn’t mean any ol’ property in a good location will make a good rental.
What investors should look for and prioritize are properties that meet the needs of their target demographic. What do residents really want? What are their pain points? What incentivizes them to renew their lease time and time again?
Location and the quality of your property management absolutely matter – but in this article, we’ll teach you what to look for in a physical property that makes it an ideal rental. It will not only help you when looking for properties, but when you renovate, too!
The proper size for a property depends on who you’re trying to attract. For the most part, established families tend to stick around for longer. The rule of thumb is three bedrooms and two bathrooms, or in line with what is common for the area. You don’t want your property to be significantly larger or smaller than the average house.
Ample square footage can be ruined by a bad layout. Does placement make sense? Or are there weird quirks that cause frustration and inconvenience? This doesn’t just refer to the rooms themselves, but the amenities, too. Do doors open in the right direction? Do appliances disrupt the function of cabinetry? Are bathrooms or laundry spaces too cramped?
Think about what is ergonomic day-in and day-out. Pay attention to these details – over time, these little frustrations can be the deciding factor in whether your residents stay or not.
Older homes tend not to have the storage space to accommodate modern needs. For example, a century ago, closet space was limited because people owned fewer clothes. Consider essential storage options – closets, pantries, and extra space for seasonal items. If the property doesn’t initially have these features, consider how renovations can create more useful space.
Energy-efficiency isn’t simply good for the environment. It also benefits your bottom line. When securing appliances, prioritize durability and energy-efficiency. Similarly, windows and doors should be secure and well-insulated. They’ll keep your energy bill down and keep pests out!
Every property will experience natural wear and tear. However, some materials put up with it better than others. Be sure that, when renovating, you’re selecting materials that strike a balance between quality and cost-efficiency. Floors and countertops should be easy to clean and maintain, carpets should stand up to traffic, and floors should be hard to scuff but easy to buff!
Consider the details like paint, too. A flat finish is easier to mark up with furniture and fingers. Some gloss in the paint, even in a matte finish, will keep walls looking cleaner for longer.
Investors, never underestimate the power of privacy. Residents often look for SFRs over apartments because they afford private spaces and amenities, insulated from the noise and problems of other people. You don’t necessarily need a property that’s tucked away in the woods – just be mindful of the space between properties, features like privacy fences and hedges, as well as the availability of private outdoor spaces.
This also includes the convenience of a private driveway, carport, or garage rather than street parking only.
Finally, investors must consider the details. Residents want to feel that they can be proud of where they live. They don’t want to see shortcuts, even when they seem small. If you’ve read any popular landlord horror stories, you’ve probably seen half-installed hardware, roaches sealed under a new coat of paint, and slip-shod efforts at maintenance.
Don’t be that guy. Instead, work with people who take pride in the work they do – ensuring not only that everything functions as intended, but that it is cleanly installed and neatly done.
Ultimately, whether you’re looking at new construction or an older property, it comes down to two things: function and attention to detail. Keep these two things at top of mind and you’ll set yourself up for success.
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