How the Location of Your Investment Property May Affect the Tenants You Attract

melbourne houses

You’ve decided that the time’s right to purchase an investment property and you’re keen to get the ball rolling immediately. That’s fabulous, however, a great deal of research and thought should be undertaken prior to this to ensure your investment works for you in the manner you intend it to.

One of the key things you need to consider is what kind of tenant you want to attract, and something that will have a great bearing on this is the location of your property.

This refers not only to the location of the suburb itself but also to the position of your property in relation to key amenities. Things that are important to tenants may include proximity to shopping precincts, public transport and freeways, schools and other educational facilities, as well as parkland and open green spaces.

Properties within “Designated Neighbourhood Zones”

What does this actually mean? There are some public primary and secondary schools that can only be attended by those who live within a certain boundary or zone. If you own an investment property within these areas, there is a high chance that it may be tenanted by a family with school-age children, potentially making them great long-term renters. Some of the most sought-after secondary schools in the eastern suburbs with strict zoning include Camberwell. Balwyn, Vermont, Ringwood, Box Hill, Mount Waverley, Glen Waverley and East Doncaster. Something to consider however is that if you’re looking to purchase in these areas, you may be paying a premium price to do so.

Inner city investments

The type of property you purchase within the inner city may dictate the tenants you attract. An apartment will potentially appeal to students who attend a nearby university; it may also be attractive to young professionals who want to be close to work and the lifestyle on offer in the CBD, but don’t want the maintenance of a yard. If it’s a home with multiple bedrooms and living areas it may be attractive to a group of friends wanting to live together. A consideration here, however, should be that if there are a number of different people on the lease, it can be hard to keep track of people moving in and out of the property, and rooms may be sub-let by one of the lease holders. This effectively dilutes the control you have over who lives in the property and may put it at risk. If this is the case, ensure that your rental agency is doing regular inspections and taking a lot of photos, and where at all possible, attend the inspections with them for peace of mind.

Suburban investments

Again, the type of property will dictate who applies for it, but it’s definitely more likely that you’ll attract a family in a suburban location than in an inner city one, especially if your home is generously accommodated, has a decent yard, or alternatively is close to parks or reserves. Apartment living is also becoming more prevalent in the suburbs and may be appealing to younger people moving out of home for the first time; it may also attract single parents with smaller families.

Presentation of your home

No matter where the property is located, a home that is well maintained and presented will generally attract a better quality of tenant. If you advertise a property that looks like the worst house on the street, what sort of tenant are you likely to attract? You want your property to reflect the kind of tenant you want to apply for your home, and someone who aims to maintain it to the same level they take it over in. If it looks like you don’t care, they may not care either.

Once you have decided who your target tenant is, start searching and keep this front of mind. When inspecting a property, put yourself in the shoes of the prospective occupants; do you think the home will meet their criteria, and will the location and its amenities service their needs? If the answer is yes, then take the next steps to make it yours. And if the answer is no, keep hunting; what you’re looking for is out there somewhere, it may just be a matter of time.

Share:

More Posts

Property outlook remainder of 2020

After what felt like an endless period of lockdown, it’s hard to say whether it was buyers, sellers or Noel Jones’ own agents who were more excited when it was announced at the end of September that a number of Real Estate activities could resume. So, what are we seeing, and what might be in store for the remainder of

Create your own summer sanctuary

After one of the most challenging winters in living memory, the promise of summer has Melburnians excited, just as we are coming out of restrictions. With lovely weather on our side, it’s time to freshen up our outdoor spaces and create our own summer sanctuary, a space to enjoy the sunshine and outdoors. Spring clean your outdoors Before summer arrives

Preparing your property for sale during covid-19

In Real Estate, almost nothing goes hand in hand better than spring and the Melbourne property market. But in keeping with the theme of 2020, even this is looking a little different this year. As part of Melbourne’s reopening roadmap, we have now seen private inspections and auctions recommence, as well as property appraisals. So, what can you do to

8 things you might be forgetting to spring clean

Aside from the usual weekly cleaning such as vacuuming, mopping and cleaning the bathrooms, there are other areas of your home that might need some much needed attention. Now that spring is well and truly here, get inspired to do a more deep clean to really make your home sparkle. 1. Door knobs & light switches Let’s face it door

Send Us A Message