In return for foregoing the benefits of traditional house ownership, the current generation of renters have come to expect more for their rent than just a place to stay.
Whether you put it down to the price of deposits or a change of mentality—from a desire to own a home to wanting to be part of a certain community or lifestyle—renting is here to stay. However, to remain competitive, occupied and profitable, rental properties need to add value to their tenants. Alongside general service levels, this is increasingly manifesting itself in the form of amenities, and for BTR developments in particular this is an unprecedented opportunity.
While lower rent will always be a positive for tenants, there’s increasing data to show people are willing to pay more for desirable extras. Ideal Home reported the following figures from the 3,752 UK private renters surveyed in recent research:
- 42% would pay £14 per month for a communal outdoor space
- 50% would pay £16 per month extra for a gym
- 36% would pay £14 per month for a shared roof terrace
If rent costs are backed up with valuable amenities, people will be happy to pay for them. With enough of these seemingly small figures factored into rental costs in exchange for extras, it’s not hard to see how customer satisfaction and landlord incomes can both rise together.
Whichever source you look to for answers, the main extras that tenants want are the same. According to Knight Frank research covered by Which?, on top of the usual amenities such as quality bathrooms and modern kitchens and a high specification, features like a gym, private cinema and a cleaning service proved popular choices across all personality types.
On analysing the keywords from their own property search tool, Zoopla were able to identify what the UK’s renters wanted most from their home. While this included results from searches for a variety of property types throughout the country, rather than just BTR developments, their research found terms like ‘furnished’, ‘balcony’ and ‘pets’ featured in the top 10. While not exclusive by any means, it’s plain to see how these demands can be met and marketed to by build-to-rent properties.
While a traditional landlord may be able to just focus on providing a reasonable place to stay and can offer more familiar housing options, this is most likely an outdated approach and irrelevant offering to the BTR target audience. With the entire premise of a serviced BTR building being based on keeping residents’ as happy as possible, amenities are a way to improve income and satisfaction.
If you’d like to know more about how we approach market and audience research and deciding upon amenities within our Kooky developments, speak to Richard Forman, our Head of Sales and Marketing, today on 0207 907 5565.