The past few years have seen a significant increase in rental demand. In November, a new all-time high was reported, with 71% of landlords experiencing rising tenant demand over a 12-year period. With the continued shortage of rental housing stock and more tenants coming into the market, it is likely that this trend will persist into 2024.
If you are a landlord considering taking advantage of the current rental market, now is the ideal time to expand your portfolio of properties and grow your investments.
While there is a large range of potential tenants to choose from, optimizing the competitiveness of your rental is crucial in maximizing your property's profitability. To help you achieve this, we have compiled a list of the most sought-after things that tenants looking for when selecting a rental property.
Car parking spaces
As more people transition from remote back to office-based work, an increasing number of renters need a car for their commute. Many rental properties, especially those in urban areas or houses in multiple occupation (HMOs), often lack convenient access to parking. This makes rental properties with parking access highly desirable in the lettings market. Off-street parking, in particular, is in high demand as it provides an added level of security.
Although there's currently no set date for the bill to be passed into law (and some parts have been indefinitely delayed), the Renters Reform Bill continues to be a topic of discussion amongst tenants, particularly regarding pet ownership within rented accommodation.
With a growing number of tenants becoming pet owners, opening your property to pets could expand your pool of potential tenants. You can request that the tenant provides pet and contents insurance to alleviate any concerns you may have regarding potential damage.
Tenants often move between properties every few years. This can be for a lot of reasons, from moving jobs to wage increases meaning they want a different type of rental property. This means tenants are less likely to own their own furniture because of the cost of moving it between properties, making pre-furnished properties more in demand.
Although energy prices have decreased from their 2023 highs, heating costs remain at the forefront of tenants' concerns. While providing prospective tenants with an estimate of their energy costs may not be feasible, you can emphasize the energy efficiency of your property. Tenants will prioritize well-insulated properties with minimal drafts that ensure optimal heat retention and have a good EPC rating.
If you’re interested in buying your first rental property, or are a landlord looking to expand their portfolio, contact our property management team who can help you find a property.