Top 5 Factors Renters Look for in a Place To Live and Why This Is Important to Your Wallet
Written by
Brooke Barley
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Rebekah Evans
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The number of homes built-to-rent homes has soared over the past decade, suggesting more people are renting now than ever. Of course, there are many different types of places available for rent, all with their own perks and drawbacks. Point2 recently released a survey detailing the top features renters look for in a potential home.
This could be very lucrative information for landlords and developers to know to create the best homes and conditions renters are looking for. Here are the top five, ranked high to low.
Also are you on the fence between renting or buying? Here’s the cost of owning versus renting in each state.
1. Rent Price
According to Point2’s survey, 70% of renters consider the price the top priority. This makes complete sense to Eric Preston, CEO of NewConstructionHomes.com. “Rent is an obvious priority but thanks to drastically increasing rental prices, renters are giving it more consideration than they were 10 years ago. What you could afford to rent only a few years back has changed.”
Preston added that because prices of houses are rising, renting is the more economical answer for many, which is good news for landlords. “The power dynamic has shifted in favor of landlords, many of whom are overwhelmed with applications,” he said.
Preston went on to explain that even if people are saving for a home, they need a place to rent in the meantime, which could mean even more cash for landlords and developers. “People who would normally look to buy a home have to save for longer, providing developers with larger pools of renters, a high percentage of which have more money to spend on rent,” he added.
2. Size
Next on the priority list for renters was how large the home was, which is something 28% of respondents listed as a top priority. Because larger families are now in the market to rent, Preston commented that landlords and developers are cashing in on the opportunity to rent larger homes.
“Building larger rental houses or apartments is necessary,” he said. “The good news for landlords and developers is that the more square footage, the higher the rent.”
3. Pet Policy
“Pet accommodations rank highly in importance, as many renters consider pets part of their family,” explained John Isakson, CEO of ARK Homes for Rent.
According to the survey, 68% of renters own pets, with 23% of renters saying allowing pets influences if they decide to rent a home. It stands to reason that landlords will make more money if they do allow pets. “Creating pet-friendly amenities like dog parks or pet stations enhances resident satisfaction and supports premium rent pricing,” Isakson added.
4. Condition of the House
“Many rental markets are competitive but renters still have options in desirable areas,” Preston explained. “This means that the condition of the house is imperative to appeal to the largest pool of renters possible.” According to the survey, 20% of renters say the shape of the home decides whether or not they’ll move in.
Preston advised landlords and developers to take note of this and upgrade their homes. “Landlords need to shell out to keep rental properties in excellent condition and up to code to justify the rent,” he said. “Developers need to build homes with modern fixtures, finishes and appliances, which costs more. Ultimately, this priority for renters will cost landlords and developers but it can also lead to higher profits.”
5. Proximity to Work and School
The real estate saying “location, location, location” is used for a reason. It’s no surprise that 16% of renters prioritize a home’s distance to work and school. Kristina Chervenka, chief operating officer and cofounder of Five Buffalo Capital, LLC, explained that when buying and constructing homes, landlords and developers need to go beyond the question, “Is this a good area?”
“For developers and landlords, it is crucial to understand how education for residents of varying ages is geographically distributed in relation to the home or community. Another factor are community bus or college bus routes and how they align with the community,” Chervenka said.
“A developer in a town with major universities and other colleges will benefit from asking for a stop near their entrance,” she added, “For landlords, the proximity to schools and higher education can assist with marketing opportunities as people are looking for efficient lifestyles and shorter commutes to work and school.”
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