Having not rented for a long time, many investors can have trouble knowing what tenants’ priorities are when looking for a home, and what features renters are willing to pay more rent for. Below we explain what to look for when investing, so you can be confident in knowing which Wellington rental properties will successfully generate the demand and rent you want.
Be Close to What’s Important
If your investment is in a great location, that’s 70% of the work done for you.
When looking for a home, the bedroom number and location are two factors less likely to be compromised with, and so are two of the main search filters used on Trade Me.
Knowing if the property is in a great location largely depends on your preference of tenant. If you want families, the property should ideally be close to good kindergartens, schools, and local parks. If you want students, being close to university is key. Whereas young professionals can simply want to be close to the CBD.
Universally, being close to an economic centre, public transport options, local villages, community centres, and supermarkets is loved by most tenants and will get you plenty of brownie points.
Can the property be easily heated with a heat pump? Is there double-glazing? Are there plenty of windows for sunlight. Are the bedrooms separated by a hallway or another room? Are all the walls neutral-toned, or will you need to repaint? Is the property in an overall good condition?
One bad factor can make a property hard to rent – putting the property at risk of reduced rent, longer vacancy periods, or you putting in tenants with a bad history, desperate to let.
Rent values are influenced by a variety of factors, the main one being what people are willing and able to pay for the location, features, and condition.
When looking at rent, you should also consider what type of tenants you hope to have. Families have the stability of long-term renting, but a property full of individuals can generally pay more, as each member is an income earner.
The best way to know the what rent the property can achieve is getting a Wellington Property Management Company to provide a Free Rental Appraisal. Wellington Property Managers know the market best, and have years of experience in renting properties, so can also provide advice on whether it’s a good investment, and if there are small things you can do to help boost the rent.
When looking at investment properties, keep in mind that you are not the market. Don’t avoid an investment because it’s not to your tastes, or buy a property that you love and would live in yourself. Think with your head not your heart.
When looking for your investment, think about if its location and features will be popular with renters, if anything will cause frequent maintenance issues, and if the rental property is in an overall good condition. Think like a tenant when looking for a Wellington rental property.