What do high-demand rental properties have that others don't

While the London rental market is highly competitive, that doesn't mean that simply listing your property to rent will lead to a successful let. Considering both the initial appeal of a property, as well as the sustainability of that appeal is important for achieving the best outcomes.

After all, you don't just want to fill the vacancy quickly and at the best price. You also want to attract a great tenant with whom you can have a hassle-free relationship, and who stays for as long as possible to minimise the cost, wear, tear, and void periods that go with high tenant turnover.

So, what are the key features and factors that make certain London rentals fly off the market and retain good tenants?

How high is high demand?

It helps to get some context for the level of competition in the market - we're often told that the rental market is highly competitive, but what does that really mean?

A shortage of available properties to rent, especially those that are in good condition, has placed good landlords in a strong position to achieve their desired results from a rental property. Furthermore, is it all levels of the market that are seeing high levels of competition, or just some? Broadly speaking, and depending on the area, it seems to be the mid-priced sector in London that faces the most intense competition, with strong demand from young professionals and families meeting with limited stock. Many argue that it's the mid-to-premium and prime segments that see the highest levels of competitiveness.

In any case, it always pays dividends to aim to do things well rather than to the bare minimum, and with Zoopla reporting that the rental market is at its softest in five years, the landlords that put in the extra effort are the ones who will retain the competitive edge.

What does it mean to create a great rental property?

Let's be clear - demand is still high, and when we talk about creating a great rental property, it doesn't necessarily mean five-star luxury, but offering an appealing arrangement and living environment within the market that you're trying to appeal to.

For example, no one expects a student let to have the same luxury credentials as a penthouse apartment in the City. However, at both ends of the spectrum you want a reasonable tenancy agreement, clean and safe accommodation, and certain amenities for modern life.

Something for everyone: The foundations of a high-demand rental property

Let's start with the basics for a high-demand rental property - the things that every home should have at all ends of the spectrum.

There are, of course, the legal requirements, and to be fully up to speed on those, it's best to familiarise yourself with the Renters' Rights Bill. It's also a good idea to speak to a trusted letting agency - like Chestertons - who can help you navigate the rules and regulations, working with you to ensure your property is compliant.

Factoring in some of those elements, as well as a considerate, proactive approach to creating the foundations for a high-demand rental property, key features should include:

Ensuring the property is in good condition

The basis of making sure a property is in good condition is in a renewed Decent Homes Standard (DHS), but it's also about common sense and general property care. For example, making sure the roof, walls, and windows are in good condition and are structurally sound; making sure there's no damp or mould within the property, and that this is resolved at source rather than using superficial measures; as well as making sure essential facilities such as plumbing, heating, and electrics are in safe, working order.

Clean, fresh decor

Preparing a property for a new tenant each time you let it is a good way to make sure it feels welcoming. That may just mean a good deep clean, but it most likely also means using empty periods to give rooms a fresh coat of paint, repair any cracks in grout or silicone, and give the house a once over. Using neutral colours, including white, not only helps tenants to imagine their life in the property, but it also makes it easy to touch up paintwork that might have been damaged by general wear and tear, and ensure the property feels as good as new. 

Use hard-wearing materials to decorate

Helping both you and your tenants to keep the property in good shape, decorate using hard-wearing finishes to minimise wear and tear, especially in high-traffic areas. These include laminate surfaces, porcelain tiles, luxury vinyl, high-quality paints that can be wiped clean, engineered wood, and stain resistant fabrics and carpets. 

Energy efficiency

As things stand, to be eligible to rent, properties in England and Wales need to have an EPC rating of E or above. However, the government's plan is to require all rental properties to achieve an EPC rating of C or higher by 2030 as part of their Plan for Change. While you don't have to achieve that today, it will help to create a safe, warm home, that's cost efficient to run. It will also help make your rental property future proof if you start taking measures towards improving the EPC rating now. Improving energy efficiency might mean adding insulation, checking that windows and doors are fitted properly, installing energy-efficient light fixtures, or simply replacing old or faulty appliances.

Going the extra mile: Making your property stand out

If you want to take things up a notch to make a property stand out within its market, then it means looking at going beyond the basic requirements of a home and thinking about the details that add extra enjoyability and convenience to the tenant lifestyle and rental experience. That might include some of the following.

Install good lighting

Lighting plays a huge role in how we experience a home. Of course, it's primarily functional, but it can also impact how a space feels - whether it’s gloomy and depressing or uplifting and enjoyable to be in. Using energy-efficient LED light fixtures will add to the EPC rating of your property, but can also create a much more pleasant living space. Where you can, optimise natural light in each room or buy light fixtures that mimic the quality of natural light. Recessed lighting in the ceiling tends to produce a more even amount of light than central pendants. Also ensure there are ample sockets for side lamps in living areas, and plenty of functional lighting in kitchens and bathrooms.

Flexible furnishing options

Offering furnished, part-furnished or unfurnished options widens the audience you appeal to, and makes it much easier for people to move in. For example, you might widen your market to professionals coming to London on secondment. Consider using modular furniture that allows people to occupy spaces as they choose but without the hassle of bringing in their own items.

Energy-efficient appliances

We have spoken about property EPC ratings and the minimum requirements needed to be compliant, as well as to support property maintenance and a great letting experience. However, you can also take the experience up a notch by ensuring you have high-end, energy-efficient appliances within the property. That might include built-in dishwashers, integrated microwaves, smart fridges, or even extra details such as espresso machines.

Pet-friendly policies

Those of us who have pets consider them to be part of the family, but lots of landlords are understandably reticent when it comes to allowing animals in their properties. Under the forthcoming Renter's Rights Bill, landlords will not be able to unreasonably withhold consent when a tenant requests to have a pet in their home, but they can object under certain circumstances or put particular provisions in place such as the need for insurance in case of damage. That said, having a proactively pet-friendly policy at your rental property opens up a wide market of prospective tenants. Most animal lovers look after their pets extremely well and will be delighted to find a home where their four-legged friends are welcome. As such, it's also a great way to start a positive relationship with tenants and find someone who may well seek to rent long-term.

The Cherry on top: Luxury features

To work towards a property that has it all, you will want to begin at the start of your landlord journey - when you're still considering the type of property you want to invest in. Many of the luxury features are things that you can't change, such as the location and fixed property credentials. Then, it's about maximising their appeal. A good agent will be able to help you find the best property for you and your goals, but here are a few things to look out for.

Prime location

If you're on the hunt for an investment property to rent out, start by considering the location carefully. Look for somewhere with all the amenities a renter might ask for - great transport links, a safe area with a great community, green spaces close by, and a good selection of shops and amenities. In London, different areas will appeal to different markets, whether it's City professionals, students, or young families, but a good letting agent will be able to guide you on where to look and what each property might expect to achieve in terms of rental yield.

Optimising outdoor space

Outside space comes at a premium, especially those in London. Whether you have a property with a balcony or a garden, aim to make it appealing, inviting, and easy-to-use. When the weather is right, we all love a combination of indoor/outdoor living, but we also like spaces that are easy to maintain. Consider plants and shrubs that are easy to look after, provide privacy and noise insulation, as well as a tranquil space to spend time. If you're making your property pet-friendly make sure outside spaces are secure and void of plants that are poisonous to animals. If you want to go all out, maybe consider creating outside seating or even cooking spaces with inbuilt ovens or barbecues. 

Private or paid parking

Parking is worth its weight in gold, especially in certain parts of London. While there are some areas of the city where a tenant may decide simply to not own a car, having parking at your rental property opens up a wider potential market. Having a property with off-street parking gives tenants convenience and security, so if you have the option of turning an outside space into on-site parking, it may be worth considering. Equally, if you're still on the hunt for an investment property, keep in mind the value of a parking space. If you don’t have private parking, it may be worth including on-street parking permits as a perk of the rental agreement to give your property the edge.

High-speed internet and tech-readiness

While it's a standard expectation in any property to have fast and reliable broadband, properties with fibre connections or smart home features really stand out. That might include smart thermostats, keyless entry, smartphone controlled security systems, automated or voice-control lighting, video doorbells, or smart sound and home entertainment systems. How far you take it depends on how much you want to invest, as well as the market you're trying to appeal to.

Chestertons is the premier London lettings and estate agency with more than 200 years’ experience and a team of experts offering a range of services from a full-time compliance department to valuations and management, for both long- and short-term lets. We can help with everything from advice to refurbishment services, as well as handling all aspects of your rental property. If you would like to find out more about working with Chestertons, contact your local Chestertons letting agent at any time.

Contact your local Chestertons letting agent