What defines the rental market value of a property?
A new UK survey shows that obvious factors such as location may not be the only ones that matters. If you are thinking of investing with the idea of letting out or already have a property and want to know where to spend for improvements, then read on.
1) Furry friends
Perhaps unsurprisingly, one of the most popular choices for tenants was the inclusion of pets, with 28% of the 3,290 tenants surveyed, willing to pay an average of £24 a month to have their furry friends stay with them in rented accommodation. This figure only increases for the up-and-coming generation, with 31% of 18-35-year olds willing to pay an extra £25.55 a month.
2) High-Speed Internet
Also high on the list of wants is high-speed internet, with 21% happy to pay £19 more a month for a home located in an area that has a strong internet speed. This may be understandable with today’s world of smart gadgets and streaming.
3) Outdoor Space
In some rented spaces, a bit of greenery can go a long way. Properties that come with a garden, even a communal one, are in high demand with 32% of tenants willing to pay extra for a home that has access to an outdoor space. Gardens are even more valuable in some of the larger cities, as houses with gardens in the capital command up to 20% more when put up for sale.
4) Gym close by
Staying in shape is clearly a priority for a good proportion of renters today, as 41% of those surveyed said that they would be happy to pay up to £20 more a month for accommodation that comes with an on-site gym. This also means that if your buy-to-let property is located close to good leisure facilities, it could fetch a higher price. How about trying to partner up with a local gym for discounted affiliate programmes?
5) Cleaning Services
It was also found that tenants are willing to pay more for cleaning services. There were reports last year that due to lack of time, half of millennials are paying a professional to keep their homes and 13% of participants in this survey said that they would pay an average of £28 a month more to free themselves of some of their weekly chores. I’d be definitely speak to local companies if I were you!
While some of these perks may not apply to every property, it is clear that landlords and developers should take a closer look at what their property has to offer. Don’t forget that features like the ones above may give you a competitive advantage over competing properties nearby.
If you have any experience that validates or is at odds with the finding of this survey, don’t forget to comment below or to join us at the next Holborn Property Meet. We would love you to share your story with us!
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– Francesco Perticarari
Property Developer & HPM Co-Founder
Ps: I’ll be speaking about property investment on the 21st of May 2018: Come Join me!