Property investors: do you know who your target tenants are?

Before you buy a residential investment property part of your research should always be in considering who is going to rent your new investment property.  If you match the property to the target tenants you’re less likely to have vacancies or need to discount the rent to get someone in. Ask yourself, who is the most likely type of tenant to rent properties in this area, what features do they want and how much can they afford to pay? Do they require parking or not?

For example if the area is popular with young families, a three or four bedroom house in a quiet street close to the local school, shops and transport would be a good bet. But if it’s an inner city suburb full of young professional singles you should be looking for a stylish apartment in a security building close to transport, cafes and shopping precincts.

Provided my target tenants are in alignment with my research for the ideal target property for the area I start looking for a property, staying focussed on the type of property that my target tenants will want to rent. I either buy something that fits the bill or something that I can easily modify or renovate to create the features and environment they want while also generating capital growth and an increased rental return.