New research conducted by leading online letting agent Upad has discovered there is a huge disconnect between what tenants what and what private landlords think they want.
Upad questioned tenants on what features they would be most likely to pay more for in a rental property, and also asked them what they’d be willing to pay for such features.
There was clear consensus in favour of some specific features, with almost 1 in 4 tenants saying they’d pay more if they could keep pets in the property. While some tenants were happy to pay more rent, others felt it would be more reasonable to pay a higher deposit and would happily do so.
Upad’s research also found that gardens, parking, and furnished properties were in demand by tenants, highlighting that there may be an opportunity for landlords to do more to deliver what tenants want.
Highlights of Upad’s research include:
- Nearly 1 in 4 tenants would pay an average of £50 per month more rent if pets were allowed in their rental property.
- £50 per month was also the average tenants would pay for a guaranteed parking space, with 17% citing this as the most important factor they’d pay more for.
- 18% of tenants would pay more for a garden, at an average of £69 per month in extra rent.
- 15% of tenants said a furnished property was most important to them, and that they’d pay, on average, £163 a month in additional rent for a fully furnished rental.
Upad founder James Davis said “What tenants have said here is a very clear message that, generally, they're willing to pay more in return for flexibility from their landlord. It is clear that what tenants want is something completely out of sync with what landlords think tenants want. Maybe it is time for landlords to wake up and smell the coffee.
While many landlords diligently stick to "no pets" rules or don't feel there's value in providing even white goods to their tenants, the evidence is there to suggest they could improve their yields by relaxing their stance on this and looking at what else tenants want.
Though it remains essential for landlords to strike a balance to ensure their business is profitable, this data provides food for thought for all landlords. For experienced landlords who may have upheld the same rules for years, new landlords, or those looking to grow their portfolio in the near future, they may wish to consider how properties with a garden or designated parking can be far more attractive to prospective tenants.”