As a property investor in Hawaii, the most important thing to ask yourself before investing in a property is ‘’what do renters want when looking for a place?’’.
Doing your due diligence can go a long way here. Indeed, by knowing exactly what your prospective tenants want in an apartment or a house, you’ll be able to pick a place aligned with renters’ needs and achieve your financial goals. Now, you’re in luck as a recent study has revealed the key things tenants are considering when looking for a new rental. Some of them might even surprise you.
And if you already own a rental property in Honolulu, you can upgrade the property to match your future tenants’ needs based on these findings and improve your property’s ROI.
So, curious to know what renters want?
In this blog, you’ll learn about the most important things for renters as well as what matters the least to them in 2021.
Top Things Renters Want in a Rental Property
Flexible Rent Payment Options
This is probably not the first thing that comes to mind when looking to increase the profitability of your rental, but renters are actually ready to pay more to be offered flexible payment options. That’s because between 35 and 50% of renters have less than a month’s rent in savings. If something happens and their financial circumstances change, having to pay rent all at once can become a challenge. As a result, flexible rent payment options will give them peace of mind.
One of the best ways to offer more flexibility and convenience to your tenants regarding rent payment is to use an app such as Flex. These types of tools provide your tenants with the option to split up the rent over their pay cycle. This will not only help them better manage their cash flow and avoid late fees, but it will also increase your chances of getting paid on time every month.
This might be surprising to you, but 48% of renters are ready to pay more to provide their guests with nearby parking. Depending on the area, parking can prove extremely costly and deter friends or family members from visiting. Especially if the property is located in a busy area or close to the city. Therefore, if you can provide nearby visitor parking, you’ll appeal to more tenants and will be able to increase your rent. Guest parking is rare, so you’ll also increase the odds of your tenants staying longer as you’ll be offering a unique amenity.
Lease Agreement Flexibility
Based on the study, tenants greatly value flexible lease agreements. In fact, 65% of them would pay more to have flexible terms such as lease termination policies and lease length. Sure, allowing prospective tenants to rent for less than a full year comes with its drawbacks.
For instance, you won’t be able to plan your income based on an entire year, and you might end up advertising your place and looking for renters more often than you would like to.
Yet, the extra rent you can get by offering flexible lease terms can help you cover these advertising costs while allowing you to rent your place quicker in the first place. Besides, if the tenants are not paying their rent regularly or are creating trouble, it’ll be much easier for you to terminate the lease.
Things That Don’t Matter As Much to Renters
A Pet-Friendly Rental Property
While 80% of landlords think renters value a pet-friendly policy, only 65% of them actually do. Now, if you ask us, that’s still a high percentage of tenants. Besides, the study might be skewed with non-pet owners. Either way, being flexible on pets can help you increase your rent and shorten your vacancy rate. However, if you decide to implement a flexible pet policy, make sure to be clear in the lease that your tenants will be liable for any pet-related damage.
Close Proximity to Good Schools
This might very well be the biggest surprise of the study. Only 55% of renters value close proximity to good and high-quality schools.
As the report suggests, one possible explanation could be that families tend to buy while singles or couples without kids are most likely to rent in their younger years. And naturally, singles or couples without kids will be less interested in the school situation than parents.
So, depending on who you are targeting when looking for a rental property in Honolulu, keep in mind that schools may not be that important. Yet, if you already own an investment property in a good school catchment, this is definitely a bonus!
Why Should You Partner with A Honolulu Property Management Company?
As a landlord and a property investor, profitability is probably front of mind. But, even though doing your due diligence is a great starting point to understanding the rental property market in Honolulu better, nothing beats experience and network. After all, managing properties is a full-time job that requires a specific set of skills.
A Honolulu property management agency will assign you a dedicated Honolulu property manager who knows exactly what renters want when looking to move out. They’ll be able to advise you on easy upgrades you might need to make and help you improve your rental income. They’ll also be able to tell you what you can do to appeal to a broader pool of prospective tenants and provide your renters with the best service to keep them happy and reduce your vacancy rate.
At Rental Agency, we love helping clients like you achieve their financial goals. We know property management can be time-consuming and challenging, so we leverage our expertise and network to make the tenancy process a smooth and stress-free experience for you. Therefore, if you’re looking for a Honolulu rental agency to help you manage your property or portfolio, drop us a line. We’re always keen to chat.