There are a number of factors to consider when purchasing an investment property. The amount of rent you can expect is determined by the market demand for properties similar to yours. The more tenant appeal, the more income you’ll generate in rent.

Here’s ten features that tenants most commonly look for when renting a property.

1. Property Presentation

Some tenants want to save money and are happy to live in a property that is not in tip top condition. There are others, such as professional people, who are happy to pay top rent, but expect the property to present at its absolute best. There is no doubt that a well presented property will achieve top market rent and will usually attract the best quality tenants which adds up to a higher investment return, and shorter vacancy periods.

2. Number of Bedrooms

The number one criteria that tenants have when renting a property is the number of bedrooms. But, the size of the bedrooms is equally important. A rule of thumb is to ensure that no one bedroom is less than 75 percent of the size of the other bedrooms. And aim for bedrooms that will fit a double or queen bed.

3. Number of Living Areas

So what is a living area? It’s an area within a property that can be used for general living, i.e. it would fit a lounge, coffee table and TV viewing area. In many properties an outside undercover entertaining area like a back deck may be considered a second living area adding tenant appeal.

4. Number of Bathrooms

The number of bathrooms you have should be in proportion to the number of bedrooms. Two bathrooms are preferred for a three bedroom house but not essential. For a property with four or more bedrooms two bathrooms is a must otherwise you won’t receive the extra rental benefit that a fourth bedroom will give you. Bathrooms should also have plenty of cupboard and bench space. A bath is not a major factor for most tenants but a shower is obviously essential. Female tenants  place more importance on bathroom facilities (and a bath) than male tenants.

5. Outdoor Entertaining Areas

Outdoor living has become an essential part of life. Properties without an outdoor living / entertaining area are more difficult to rent than those with one, particularly in warmer climates. Size is also important. Enough room for a BBQ and outdoor setting for 4-8 people.

6. Location

Location is relative to each person and most tenants have their own criteria with regard to location, for example, a 15-minute walk to work or nearby access to public transport. Suburbs surrounding university campuses have an increase in tenant demand during Jan/Feb and Jun/July.

7. Car Accommodation

Car accommodation is not a major factor with most tenants when selecting a place to live. This is largely due to the large number of younger people, who choose not to own a motor vehicle. And most properties within 8km of the CBD in all capital cities have access to reasonable public transport. While covered car accommodation is not top of the priority list, some sort of off street parking is a definite advantage.

8. Views

When comparing two similar properties if one has views, this will usually be the prospective tenant’s preference. And don’t forget if your plan is to sell at some stage good views will increase your capital growth return over the period of time that you’ve owned your property.

9. Houses, Units & Townhouses

Generally speaking the percentage rental return that you will achieve from a unit will be higher than from a townhouse which will in turn be higher than from a freehold house. Generally speaking the reverse will be true from a capital growth perspective. You will generally receive better returns in capital growth from houses than from townhouse and  units. This is a general rule and depends heavily on what you buy and where it is.

10. Busy Roads

It goes without saying that nobody wants to live on a busy road, however a spacious, well presented property on a busy road will rent before a poorly presented property in a quiet location. A property that fronts onto a busy road will take longer to rent than the same property that backs onto a busy road. If you are considering purchasing on a busy road, the most important consideration is off street car accommodation, and strategically located outdoor entertaining areas to minimise noise.