Who is your ideal renter?
Just as there’s an ideal client in business, and an ideal buyer in property sales, when it comes to owning an investment property, it’s a good idea to have an awareness of your ideal renter.
Why? Well, it helps determine everything from your marketing to your maintenance and property improvements.
So, let’s look at the different types of renters and how defining the ideal one for your property can maximise your investment.
The concept of an ideal renter
The idea of an ideal renter has its basis in business practice where considerable time and effort is spent defining who wants your product and what type of character traits they have.
In the case of the ideal renter, it doesn’t have to be quite so specific, but it is a good idea to understand the type of person or groups of people who are most likely to rent your home.
When you know who your ‘ideal renter’ is, it helps determine how much they might be willing to pay, what sort of property improvements they might value, and what sort of special conditions they might appreciate.
So, let’s look at some examples…
Ideal renter examples
Say you have a modern two-bedroom investment unit close to the city.
Chances are this property would likely appeal to professionals. They might be young or more mature, but either way it’s likely they will value specific property features, such as parking, on-site facilities like a gym or pool, and proximity to public transport along with cafes and restaurants.
Knowing this helps you market the property to the right people for the right price.
Now consider this…You own a four-bedroom property in the suburbs complete with a swimming pool, two-car garage and extra living spaces.
The ideal renter for this is likely to be a family. Chances are both parents work and the children are at school. Marketing this property is all about presenting the family friendly lifestyle and if there are good schools in the area, you would want to mention them.
Now, imagine you have a five-bedroom older home, and it’s in proximity to a university. There’s a good chance this would appeal as a share house for uni students, who will sub-lease the rooms. They’re looking for affordability and university proximity rather than the most modern fixtures and fittings.
Consider your ideal renter when investing
If you’re looking to purchase an investment property, your ideal renter is something worth considering.
When you know who the property is likely to appeal to, you have a good idea of what they might appreciate, the level of maintenance and management they will require, renter turnover, income, marketing and so much more.
