When listing your Auburn property for rent, it’s sometimes hard to know exactly what tenants are looking for and what they may be willing to pay a higher rent amount for. If you’re considering updating your rental, this can make it difficult to determine what upgrades, if any, you should do.
A recent study done by Millionacres polled 1,500 renters and 136 landlords to get some clarity on this topic. While the survey sample size is not huge and the results can vary drastically by age and location (among other factors) of tenants, nonetheless, it’s a good starting off point to see what’s on a tenant’s mind.
The study asked both landlords and renters about 16 specific features that could possibly affect the value of a rental property. Tenants were asked whether it was of enough importance to them that they would be willing to pay a higher rent price and landlords were asked if they believed it was important enough to tenants for them to pay a premium. Below are some of the results.
Where Tenants and Landlords Disagree
Based on the data, more than half of the surveyed renters said they would “probably” or “definitely” be willing to pay more for the following things. In some cases, landlords agreed with renters while in other cases they didn’t see the importance.
Flexible Payment Options
Despite landlords thinking the opposite, just over half the tenants said flexibility when it comes to rent payments would be worth paying more. The survey didn’t specify exactly what this means, but it could be allowing a longer grace period, accepting cash, credit cards, Venmo or PayPal payments, or even accepting multiple smaller rent payments. It just sounds like flexibility in general is a plus.
Flexible Lease Terms
No one likes something that is set in stone, which is why flexibility seems to be so appealing to tenants. Flexible lease terms could refer to shorter or longer leases, month to month leases, less strict rules and regulations, etc. The one thing that’s clear is that renters (at least 65% of them in this case) like to keep their options open. On the other hand, only 25% of landlords thought flexible lease terms were of increased value to tenants.
Pet-Friendly Properties
A whopping 82% of landlords estimated that allowing pets in a rental would be something that animal owners would be willing to pay more for. They weren’t wrong; the results showed that 65% of tenants agree, however, it seems that landlords may have slightly overestimated the value of this feature.
Good Schools
Both tenants and landlords agreed that good schools are a valuable feature when it comes to searching for a rental property, but landlords seem to think so a bit more than renters. The survey showed that 72% of landlords felt this was something tenants would pay more for, while only 55% of tenants surveyed agreed.
Where Tenants and Landlords Agree
Out of the 16 topics that landlords and tenants were surveyed about, they were in congruence on 11 of them. The features they both agreed were of higher value and worth paying more for are as follows:
- Location (convenience, proximity to areas of importance)
- Modern building/features (this could refer to the interior and exterior)
- Neighborhood (safety, cleanliness and friendliness could all be considered)
- Dedicated parking (think carport, garage, or assigned spaces)
- On-site pool or gym
- Accessibility features (ramps, elevators, etc.)
- Updated appliances
- Large square footage
- Central AC (staying comfortable is a must!)
- Utilities being included in rent
- Safety and security features (security guard, gate, cameras, alarms, etc.)
Knowing exactly what a tenant wants will often vary depending on each individual person, their needs and their situation. For example, a college student will likely have some different needs and wants than a family with young children. The commonality amongst the tenants surveyed is that they value convenience and flexibility. This is definitely something for Auburn landlords to consider when preparing a property for rent. If you need help making some of these decisions, we’re just a phone call away and happy to help!
Written by Jessica Ornelas | Realtor/Property Manager | DRE# 02042367
