CBRE, an industry leader in commercial property management, revealed in February 2021 that Australia’s build-to-rent (BTR) industry grew by 68% in 2020 amid the pandemic. While 30% of people rent in the country, the BTR sector is relatively new to them. Most rental properties in the country are privately-owned.
In the United Kingdom, one in five homes belong to the BTR sector, while two-thirds of rental properties in major cities are BTR in the United States. Both countries are heavyweights in the BTR industry. According to the CBRE report, its flexible features make BTR properties attractive to tenants in these countries.
What are these features? The BTR industry promises property personalization, hotel-style services and amenities, onsite management that focuses on the needs of tenants, and, more importantly, flexible, long-term lease contracts. And with the increasing demand of people to have a companion during times of isolation caused by the pandemic, most BTR properties allow tenants to have pets.
As a private rental property manager or owner, how can you compete with that?
According to the Consumer Protection division of the Department of Mines, Industry Regulation and Safety, yes, you can! Three key factors can help you attract quality tenants.
The best way to compete with BTR properties is for you to have high-quality properties. They should be in the best possible locations. Most importantly, your prices should be at an ideal rate. This scenario can be challenging but achievable.
Although you can’t control rental rates, several elements can help you offer high-quality rental properties. This article aims to provide you with these elements to make your properties more desirable and attract quality tenants. Learn more about them below.
One of the features that make for the desirability of a rental property is the surrounding amenities available to tenants. Properties with or near amenities are more popular in general compared to ones without. And it doesn’t have to be just any amenity. It should be beneficial to tenants.
Managing an apartment complex will help your property have amenities that most tenants look for, such as a private parking space, a pool, a gym, a garden, and a socialization area. These amenities are ideal for an apartment complex considering most apartment tenants are people between the age of 25 and 34 with families.
On the other hand, whether you own a home rental property or an apartment complex, your property must be near public transport, hospitals, schools, and recreational parks.
Your property’s location can be helpful when it comes to amenities. If you are near a city or a highly urbanized area, your property will likely be close to public amenities.
Tenants are also looking for rental properties near business districts and transportation hubs, especially if they are not working remotely. For families, they prefer properties near schools and markets. And although the rental demographic for seniors are lower, it’s still beneficial to consider their choices. For older tenants, they want properties close to hospitals and recreational parks.
The key to finding the best location for your property is deciding which target market you want to focus on.
Properties with outdoor spaces are more popular today because of the pandemic. Because people are spending more time at home, they look to their surrounding outdoor areas for consolation. Knowing this, another critical factor in the desirability of your rental property is the availability and appearance of outdoor spaces.
A garden, balcony, courtyard, and other outdoor structures though simple, can have a huge, positive impact on the mental health of tenants. For an apartment complex, a rooftop relaxation spot with artificial turf as its flooring can be attractive to tenants, too.
Climate change and global warming are significant issues that affect everybody, including tenants. Considering this, offer properties that feature sustainable use of energy and water. If you must, comply with green building codes.
For sustainable use of energy, switch to energy-efficient lighting and appliances. Reinforce your property with better insulation to minimize the use of heaters. If possible, invest in solar panels. Install skylights and transoms, and strategically place windows to let natural light in and cut energy costs. Use water-efficient bathroom fixtures as well.
Work With Potential Tenants in Mind
If you don’t want to lose potential quality tenants to BTR properties, there are simple ways to enhance the desirability of your rental property. But, you must develop your solutions around the needs of your tenants. Follow the set of advice above to help you meet the needs of quality tenants, which can entice them to become your clients.