The team at Millionacres, a real estate investing service by The Motley Fool, surveyed 1,500 renters and 136 landlords to find out if landlords really know what their renters want, and more specifically, if renters are willing to pay more for specific features in a rental property.
According to the study, some of the features landlords typically think add the most value aren’t as much of a priority for tenants as you might expect. On the other hand, certain features, some of which don’t cost much at all, could increase the income-producing potential of an investment property.
Key findings:
- 76% of renters think that landlords know what renters want in a rental property “pretty” or “very” well.
- 86% of landlords think they know what renters want in a rental property at least pretty well.
- For the most part, landlords know what renters are willing to pay more for in a rental property.
- Renters were willing to pay more than landlords thought they would for three things: convenient payment options, guest parking, and flexible lease terms.
- Renters weren’t willing to pay as much as landlords thought they would for two things: pet-friendliness and high-quality nearby schools.
- Almost half of renters say that getting the specific features they want is more important than affordability.
- Only 18% of landlords thought that features trumped affordability in a rental property.
Read the full study in the Millionacres Research Center.
