Some tenants have high incomes. But most tenants are price sensitive.
Only 15% of tenants say they are willing to compromise on price.
That’s according to a Barfoot and Thompson survey. It’s older data, coming from 2017. But it’s the best available and lines up with what my property managers see.
So a basic home can often be a better rental than a larger, more luxurious home.
#2 – Location
Location is almost as important as price. 85% of tenants say this is an important factor.
Tenants want to be close to where they go to work and where their kids go to school.
That doesn’t necessarily mean you need to buy right in the middle of a city.
In a big city like Auckland, Wellington or Christchurch not everyone works in town. That was a misconception I had to unlearn.
Even fewer tenants (14%) say they’ll compromise on location.
They want a property in the right location with a good price (rent).
#3 – Number of bedrooms
Two thirds of tenants say the number of bedrooms are important.
Tenants want a home with enough rooms for their family (as long as the price is right).
That doesn’t mean they need lots and lots of bedrooms. They just need enough.
Compared to homeowners, tenants live in homes with fewer bedrooms.