WHO IS YOUR TARGET TENANT?
By Juli Anne Tolley,
Principal owner Quinovic Tauranga.
Cliff and I recently spoke to the Rotorua Property Investors’ Association. We were invited to share our rental investment journey and the learnings along the way. One of the topics we covered is knowing your target tenants. What do I mean by that?
As a writer, you must identify your target audience so that you use a specific style and language to engage that audience properly. Likewise, as a property investor, you will do better to know your target tenant, in other words, the tenant category you are aiming to attract. It really is the basis of the decisions that follow: where to buy, type of property to buy, features to provide. To illustrate, consider the following examples:
·???????? The typical family seeks three to four bedroom houses preferably with fenced yards, and in desirable school zones.
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·???????? Retirees look for one to three bedroom properties in quieter neighborhoods near shopping and medical facilities – flat grounds, no stairs or steep drives.
·???????? Professional couples look at apartments or townhouses, or modernized homes with an office and garaging.
These preferences impact how a property will attract the desired type of tenant.
We didn’t know who our target tenant was until many years deep into our investing journey, we assessed our portfolio. We discovered that for us, it was families we were catering to best. With this understanding, our buys and improvements were more intentional and focused, and the portfolio performance improved.
We often have investors call or come into the office to chat about potential property purchases, and the first question we ask is: who is your target tenant? By knowing this upfront, you increase the likelihood that your investments match your desired market. The better the match, the stronger the performance. If you want to chat about your portfolio goals, give us a call. We are always happy to talk property!