Top 5 most desired features for Australian renters
- Posted By Ndl 1 Realty
New data highlights that Australian renters have a strong attachment to their pets despite the fact that the majority of rental properties in the market do not permit them.
The most frequently searched keywords by renters on realestate.com.au over the past year were dominated by "pet-friendly," particularly for houses. This intriguing trend persists despite the fact that only one in seven rental properties in the market accommodates pets in a country where the majority of Australian households now include a furry companion.
"Pet-friendly" consistently ranks among the top search terms for renters, as noted by Angus Moore, a senior economist at PropTrack. This trend is driven, in part, by the limited availability of pet-friendly rentals, making it a crucial consideration for pet owners when searching for housing.
During the pandemic, pet ownership experienced a significant increase, with approximately 69% of households now having a pet, according to a recent survey conducted by Animal Medicines Australia.
The suburbs with the highest search volume for pet-friendly rentals are primarily located in Brisbane, with Chermside, Coorparoo, and North Lakes leading the list. In Sydney, Blacktown, Ryde, and Marrickville saw the most searches for pet-friendly properties, while Melbourne, Richmond, Brunswick, and South Yarra were the most sought-after areas.
Angus Moore noted, "There is clearly a demand," indicating that there is an opportunity for landlords to meet this demand by providing more pet-friendly rental options.
Brigitte Stills, a property manager and real estate consultant, emphasises the importance of landlords adopting a more open-minded approach to allowing pets in rental properties. She points out that many property owners are concerned about potential wear and tear and the associated expenses at the end of a tenancy. However, Stills argues that the ultimate goal should be to lease the property to a reliable, long-term tenant.
In her experience, some of the best tenants have been pet owners. They tend to take good care of the property, consistently pay their rent, and are upfront about any damage that may occur, often taking responsibility for repairs when needed.
Leo Patterson Ross, the Chief Executive of the Tenants Union, noted that while it has become somewhat easier for tenants to request permission to have a pet during a tenancy, the process of applying for a rental property with a pet remains challenging. The competitive nature of the rental market allows landlords to be selective in their choices, which can make it difficult for pet-owning tenants to secure suitable accommodations.
Leo Patterson Ross expressed concern about the consequences of the difficulty in finding pet-friendly rental homes, noting that tens of thousands of animals end up being given up by their owners.
To minimise the risk of problems associated with pet ownership in rentals, Mr Patterson Ross suggested that pet owners ensure their homes are suitable for their pets, creating a safe and healthy environment. This, in turn, reduces the likelihood of issues such as property damage, noise disturbances, and other nuisances.
Brigitte Stills mentioned the emergence of pet resumes as a helpful tool for pet owners to ease landlords' concerns. These pet resumes often include references from veterinarians and previous landlords, providing reassurance to landlords about the suitability of the pet and its responsible owner. Stills humorously added that these pet resumes often come with better references than the tenants themselves.
Convenience comes at a premium price.
When it comes to rental units, the most sought-after feature among renters is furniture, with searches for 'furnished' surpassing all other keywords.
According to Mr. Moore, this reflects market segmentation, where a specific group of renters is looking for temporary housing solutions. These renters typically do not possess their own furniture or appliances and prefer not to acquire them due to short-term plans, whether for work or personal reasons. Consequently, they actively seek rental properties that come fully furnished, saving them the substantial costs of acquiring these items. This reveals the potential for a sizable market segment seeking this unique product.
Furnished rentals are in highest demand in inner-city areas, which have also witnessed some of Australia's most robust rental price growth over the past year, with prices surging by nearly 30% in certain suburbs.
Tenants in inner-city or coastal regions who require shorter lease terms are willing to pay extra for the convenience of a furnished rental, as stated by Ms Stills. She noted that these furnished rentals often come with a premium, particularly for leases lasting up to six months. However, this cost is offset by the fact that tenants don't need to invest in furniture, making it a convenient and cost-effective option for those seeking temporary housing solutions.
Renters prioritize affordability and value when searching for rental properties.
The increase in rents has led some tenants to explore more affordable and flexible housing options. Searches for 'dual living' have seen an 18% rise over the past year, and searches for 'granny flat' have increased by 6%.
"Rents have skyrocketed, and those who cannot afford them are increasingly turning to dual occupancies or granny flats," noted Ms Stills.
The experience of renting a granny flat can vary significantly, according to Mr Patterson Ross, and renters should be mindful of privacy and utility-related concerns.
He mentioned, "There's quite a range out there, from questionable structures that are passed off as granny flats, which you wouldn't want to house your grandmother in, to better quality options."
Furthermore, legal issues can arise, especially regarding utility metering, the division of utility expenses, and the definition and allocation of shared spaces, which are frequently poorly defined. These are important considerations for tenants exploring granny flat rentals.
In addition to renters, buyers are increasingly showing interest in granny flats. Owner-occupiers are looking for homes with income potential, while investors are targeting properties with high yields to help offset their higher mortgage repayments.
On the other end of the property market spectrum is a growing demand for premium or new apartments. For example, there has been a 53% increase in searches for 'penthouse' in the Australian Capital Territory (ACT) and a 37% increase in searches for 'brand new' properties in New South Wales (NSW).
In Queensland, searches for 'waterfront' properties for houses have risen by over 7%, and there is an 11% increase in searches for 'beach' and a 6% increase in searches for 'ocean view' among renters looking for units.
Similar to buyers, renters are also interested in properties with pools. 'Pool' ranks as the second-most searched keyword for houses and fifth for units.
According to Ms Stills, individuals with children and those coming from overseas with financial means are actively seeking properties with swimming pools. She estimated that houses with pools can typically command about 30% higher rental rates, especially if maintenance is included.
Mr. Moore noted that both renters and buyers have recently placed greater value on amenities that enhance their lifestyle. This includes access to beaches, proximity to national parks, scenic views, larger backyard spaces, rooftop access, penthouses, pool facilities, and on-site gyms within apartment complexes. These features have gained increased importance during the pandemic.
Understanding the specific features renters are searching for in local markets can be valuable for investors, as it helps ensure their properties align with tenant preferences. Mr. Moore emphasises that this knowledge can inform property purchase decisions and guide property management practices, such as allowing pets or investing in certain amenities to meet tenant demand.