There are many characteristics that landlords would agree make for a successful tenant. Whether it’s a secure job, timely payment of rent, or regular communication, there are some traits to look for in tenants.
When it comes to attracting any market, emerging or established, it’s important to understand what this group is looking for and what they expect of a rental property.
A recent survey by AXA Business Insurance polled those who are currently privately renting, and broke the results down by six different age categories –
They were asked a number of questions relating to property rental including what types of agreement they have, why they rent instead of buying, and what their overall attitudes are to renting is.
Why do tenants like to rent?
One question asks the respondants what they think the advantages of renting over buying were. For those who were 35 and above, freedom from repair costs was the greatest advantage, even above freedom from a mortgage! Those between 18 and 34, however, listed that being able to move at short notice was their advantage over buying. 41% of the 18-24’s and 32% of the 25-34’s surveyed rated this as their main advantage.
What does this information then tell landlords looking for tenants? Those aged 18-34 are looking for short term contracts, and value the ability to move to a different place when they want without too much difficulty. Those who are older however, are happy that they don’t need to fork out money for repairs. If you’re looking for a younger tenant, then perhaps a flexible lease will peak their interest, whereas older people are looking for their landlords to be prepared and able to carry out any repair work needed on the property.
Landlords should also pay attention to what tenants feel they value the most out of where they stay. The respondents to the survey were asked ‘What are the top reasons why you chose your current rental property?’ The highest motivation was price, with an average of 44% across the ages of 25-64 putting this as their highest priority. Two age groups answered with a different priority, however. The 48% of the 18-24 age group rated proximity to workplace above price and 47% of the 65+ rated proximity to shops and amenities. These are trends for landlords to bear in mind when looking at a property and thinking why someone might choose to live there.
What do tenants dislike about renting?
In a similar vein, the same tenants were asked were asked what the biggest downsides to their property was. For the younger section of the respondents; 18 to 44, the main concern was too little space. The next bracket up, 45-54 were concerned about price, and the 55-64s and 65+s felt that there was nothing that could trigger them to leave their rental property.
We can now assume that if you have a property for rental and would favour young tenants, you should therefore be making steps to maximise the space you have, or see what you can do to lower the price of rent, if possible. Landlords who might be looking to tap into the older market of tenants the data shows us that they are quite happy to be settled, as long as the property is near shops and other amenities.
Attracting great tenants
High quality tenants come from having a good understanding of what they are looking for. If you are able to fulfil the needs of different people at certain stages of their life, they will be more likely to be interested in your property than someone else’s.
This landlord’s checklist from AXA Business Insurance details the little things that you should have in order before you start advertising for tenants. Further information from the NLA will help you with the nitty gritty here.