It’s typically the case that certain tenant market segments may find certain types of property more appealing than others.
Yes, location is always going to be perhaps the major factor but even so, a number of other factors might prove to be crucial in you obtaining the type of tenants you wish rather than those you are forced to take:
- match your décor to your tenant aspirations. Having a great property in a great location that you hope to let to, say young professionals, might prove to be difficult to let if your furnishings are of poor and rudimentary quality. Young professional tenants might be a premium sector in terms of potential for income but they are also likely to be more demanding in terms of comforts around the property and the quality they expect to see in return for their rent;
- put yourself in your target segment’s shoes. For example, if you hope to let to families then your property may need a garden or at the very least access to adjacent playing areas. Your furnishings should be reasonable quality and above all robust, as younger children can be unforgiving on things such as furniture. Remember also that families will be looking even more closely than others at safety around your property. Open staircases (etc) might be a big turn-off to that segment;
- be realistic about your target market segments. Setting high expectations for income levels and high net worth tenant segments may simply lead to disappointment if, for whatever reason, your property is simply not of a type or in a location that such tenants will be looking for;
- think through your advertising channels. Certain groups in your marketplace may be much more inclined to look at some types of publication or websites, than others. Advertising through unsuitable channels is likely to lead to you never seeing the types of tenants that you are interested in;
- take into account lifestyle expectations. As touched-on above, relatively high income market segments may place a premium on a designer look-and-feel. Groups at more modest average earnings levels may be placing far more emphasis on the flexibility of the accommodation being offered and its practicality. You should design your property and decorate it accordingly. In passing, remember that some tenant types may not always be acceptable under the standard terms of your landlords’ insurance. You may need to conduct a simple landlords’ insurance review to be sure;
- be aware of your location when defining your target tenants. Of course, there is nothing much you can do about your property’s location once you’ve purchased it but remember that high-street areas very close to shops, restaurants and bars might be very popular with groups such as students and young professionals. By contrast, they might be seen as being too noisy and potentially disruptive for families and older renters who might prefer rather more peace and quiet.
Try to keep in mind that sometimes relatively minor differences in terms of decorative look can make a huge difference to your success or otherwise in attracting different types of tenants.
However, all of that may be of little use if your initial advertisement contains poor-quality photographs that simply do not highlight the key attractions of your property. So, think about the visual impact of your ad at the time you are putting your photos and text together.