In the past, the private rented sector (PRS) mainly consisted of people who were unable to afford the cost of their own homes. Today, that has changed. The convenience and freedom offered by rented properties have driven up the number of people living in rented properties across the UK. Indeed, the entire country is witnessing a massive resurgence of rental culture.
For investors, this shift in preference is significant. Previously, tenants didn’t have to spend too much time on the decision making process before renting a property. Today, however, the scrutiny is much more intense, especially among the younger generation of tenants. The onus lies with the landlords to ensure that they provide rental properties that meet all the demands and requirements of current day tenants.
But what factors should consider?
The rental market may evolve in all manner of ways, in the future, but the location of the property will always remain an important consideration for potential renters. Again, this seems to apply even more so for younger, mobile professionals. Regardless of the location, property investors need to ensure that their rented properties will allow younger tenants to make a statement with their home; the property is expected to represent the tenant’s way of life, and personality. So when making the decision to purchase rental properties, investors need to ensure that the properties are desirable locations, as well as being appropriate for refurbishments. This flexibility with refurbs will come in handy if and when, you need to knock the property into shape for future tenants.
A decade or two ago, internet speed would never be listed as an influencing factor in property rental. However, the rising impact of the internet on everyday life means this consideration is now high up the list for many tenants. For professionals, and indeed the average renter, the internet can be a make or break item. It determines whether the professional can get work done at home, or simply relax in their home (seeing as in-home entertainment is becoming synonymous with online activities and services).
It’s not really a surprise that many will consider their internet options, first, before signing up to a rental property. Therefore, property investors need to confirm the presence of major internet network providers in the area before investing in a particular property.
The fast-paced nature of modern life means tenants will always favour a rental property that is already furnished and requires little or no input from them.
Career-wise, tenants are more mobile than in the past. In fact, often the major reason they rent in the first instance is due to the freedom provided – renting allows the tenant to move on quickly, as soon as career advancements dictate. For such renters, a house that requires them to purchase new or bring in old furniture is not going to be an appealing option.
This could potentially cause problems if they suddenly have to relocate sometime in the future. Fully furnished flats circumvent this issue, and will always attract more interest from potential tenants.