The objective of investing in a rental property is for landlords to earn a maximum return on their investment. To achieve this objective, the property will need to be occupied for a maximum period by a good calibre tenant who pays their rental on time and looks after the property, says Junaid Fester, a rental agent with Seeff Southern Suburbs.
Two elements are essential to this. First, he says, is attracting the right tenant and secondly, hands-on management of the asset to ensure it not only retains its value but accumulates capital growth. To attract the best calibre tenants and highest potential rental, landlords should ensure their property meets the needs of tenants adequately.
What do tenants look for in a rental property?
Fester says tenants firstly look for a great location which offers access to good transport networks and amenities. Family tenants look for access to schools while students need proximity to colleges and universities. Young tenants (including students) look for proximity to trendy hangouts and nightlife.
A property which is secure and offers secure parking for their vehicles is another plus for landlords. Adding an alarm and security features is a cost-effective way to make the property more attractive to tenants.
The property should also meet the needs of a modern lifestyle with updated features including functioning kitchen facilities, a comfortable bathroom and enough cupboards throughout. Tenants also value entertainment space such as a balcony or outdoor braai area.
Fester says further that these days tenants will also want good amenities including fibre or Wi-Fi and DSTV connectivity. We live in a digital world especially in view of the Covid Pandemic and landlords should invest in digital infrastructure. Some tenants may also look for pet-friendly properties and proximity to outdoor leisure facilities such as parks, beaches and jogging and cycling paths.
A cooperative landlord who is responsive to maintenance and other issues and who appears to care about the property and tenant is also valued. This includes a landlord who keeps rental rate hikes in line with the economic trends.
The property must also be well-maintained and should be thoroughly cleaned before occupancy including steam cleaning the carpets and floors, repainting and fixing any broken handles and hinges, cupboard doors and so on.
How can a managed rental solution help landlords leverage maximum rental returns?
Given that rental property is a significant financial investment, landlords are increasingly opting for a full hands-on property management solution. This extends beyond just sourcing and vetting the tenant to include incoming and outgoing inspections, deposit and rental collection management, as well as liaison with the tenant/s and landlord and management of any potential maintenance issues.