In the dynamic landscape of Perth’s rental market, where the rental vacancy rate ranks among the lowest in Australia at just 0.3% understanding tenant preferences is paramount for property investors seeking to maximise their investment returns. As demand for rental properties remains robust, investors must discern the factors that influence tenant decisions and tailor their investment strategies accordingly. Here are some key insights into what renters seek in rental properties across Western Australia, essential for property investors aiming to optimise their investment portfolios.
Monthly Vacancy Rates Australia
Source: Domain (February, 2024)
Location, Proximity, Accessibility
For property investors, the golden rule remains unchanged: location is king. Tenants prioritise rental properties that offer convenient access to essential amenities and services, including public transport hubs, schools, shopping centres, and recreational facilities. Investing in properties situated in thriving neighbourhoods with strong infrastructure and connectivity can enhance rental demand and property value overtime.
According to REIWA, the top performing suburbs for rentals as of March 2024 are East Perth, West Perth, Rivervale and Victoria Park.
Affordability and Value Proposition
In a market where affordability is a top concern for tenants, property investors must strike a balance between rental rates and property value. Conducting thorough market research to set competitive rental rates while delivering value-added features and amenities can attract discerning renters and ensure a steady stream of rental income.
Quality and Maintenance Standards
Property investors must uphold high standards of quality and maintenance to attract and retain tenants. Renters seek rental properties that are well-maintained, clean and in good condition, with functional appliances and modern fixtures. Investing in regular maintenance and prompt resolution of tenant concerns not only fosters tenant satisfaction but also protects the long-term value of the investment property.
Desirable Amenities and Features
Investing in rental properties with desirable amenities and features can significantly enhance tenant appeal. Features such as secure parking, outdoor spaces, energy-efficient appliances, and high-speed internet access can command higher rental rates and attract quality tenants. Property investors should evaluate market trends and tenant preferences to identify strategic opportunities for property upgrades and enhancements.
When it comes to determining desirable amenities and features, it’s important to consider the type of tenant you wish to attract. If looking to attract a solo renter or couple, their desirable amenities will be different in contrast to those of a family with pets. While a couple may seek an apartment and the associated features that come with this (e.g. onsite gym and secured parking), families may be more attracted to a multi-bedroom property or townhouse with outdoor space.
Another aspect to take into account is the advantages that new builds can offer, in comparison to established homes. With new builds, investors enjoy returns unencumbered by the issues commonly associated with ageing properties, such as the need for frequent renovations or the risk of past questionable renovations. This not only ensures a hassle-free ownership experience but also contributes to long-term cost savings and peace of mind.
Additionally, for international and overseas investors, building ‘new’ presents a convenient solution. It eliminates the need for physically attending home opens or worrying about the condition of the property from afar. At Westcoast Property Invest, we understand the unique needs of international investors and offer comprehensive services to help streamline the process. From conducting thorough due diligence on locations to overseeing the construction process, we ensure a seamless and efficient investment journey.
Need assistance? Looking for advice or insight on current market trends? Get in touch with us! It’s what we’re here for.
Flexibility and Tenant-Centric Approach
Property Investors who prioritise flexibility and tenant-centric services can differentiate their rental properties in a competitive market. Offering lease term flexibility, pet-friendly policies, and convenient rent payment options can cater to diverse tenant needs and preferences. Moreover, providing responsive property management services and fostering positive tenant relationships can lead to higher tenant retention rates and reduced vacancy periods.
Community and Lifestyle Attributes
Investors should consider the broader community and lifestyle attributes surrounding their rental property. Properties located near parks, cafes, restaurants, cultural venues, and recreational facilities can offer tenants a vibrant and enriching lifestyle experience. Highlighting these lifestyle benefits can enhance tenant attraction and satisfaction, ultimately contributing to the property’s long-term success.
To Sum Up
For property investors in Western Australia, understanding and addressing tenant preferences are crucial steps towards maximising investment returns and ensuring long-term success. By prioritising factors such as location, affordability, quality, amenities, flexibility and lifestyle, investors can optimise their rental properties to meet the evolving needs of today’s renters.
At Westcoast Property Invest, we specialise in helping property investors navigate the complexities of the rental market and maximise the potential of their investment portfolios, aiming to create positive rental experiences for tenants across Perth and Western Australia. Contact us today to learn more about our services and how we can help you achieve your property investment goals.
Just beginning your property investment journey? Check out our FREE guide here for advice and insights on investing in new house and land properties.
References
https://www.domain.com.au/research/vacancy-rates-february-2024-1266500/
https://reiwa.com.au/news/perth-weekly-market-snapshot-for-the-week-ending-10-march-2024/
