Arnold
CibbuanoRenter’s Desires
May 10th 2006 03:49
The first step is to look at the area and decide who are the likely rental candidates for the area. This will help determine what feature your property should have. For example, if you are looking to invest in an area close to a university, it would be reasonable to expect a decent number of tenants in the area would be students. An area closer to the CBD would probably be catering to executives or those whose place of employment is located within the city. Some areas are more family friendly and thus attract families. Some areas can be classified as blue collar, other white collar. The general area is the first and most important factor in determining what are terrific property features for the likely rental market and what features are not so important. Some key indicators of the area include local amenities, are there any schools, train stations, universities, major employment centres, nightlife etc. Also look at the local political party and Council, their values will tend to reflect the general values of the residents. Have a walk around the area and take note of the people living in the area. Are they single types, young families, childless couples, business types, students???? All these factors can be used to assess the rental prospects of an investment property.
So you’ve done the homework and gathered the information on the majority demographic of your investment area of choice, how do you apply this analysis and what does it all mean. At this stage, you’ve got to project yourself into the minds of your likely renter to assess what they want in a rental property. Let’s assume you want to invest in an area close to a university and you’ve decided your likely renter is going to be a student. What are the things students want accommodation wise? Students don’t typically have a lot of money and are more willing than more established adults to forgo life’s little luxuries for cheaper accommodation. Money spent on a state of the art whirlpool bath and marble bathroom tiles is not necessarily money well spent especially if it means the rental has to increase by $20 a week to pay for this little luxury. Provided that the place has a decent bathroom in working order, a student renter will generally be happy. A way many students try to reduce their rent is to enter share housing arrangements. Many like to share properties with friends, in this respect multiple bedrooms are a great idea.
Another thing to think about is transportation. Off street parking may not necessarily be a big factor for a student as more tend to rely on public transport rather than private cars. Why would a student justify paying additional rent for off street parking if they don’t have a car. Instead, you’re better looking for a property with good access to public transport, even better if there are several modes within proximity, ie bus stops and train stations. Also, be expecting a few student parties. Carpets, wall paint, lighting, appliances should all be clean and in good working order but there is little need for them to be state of the art.
Essentially, if the property is within a reasonable distance from the university, transport facilities, has local nightlife and shopping facilities and is a safe area, you’ll be likely to keep the student population happy.
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