Discover the transformative power of tenant centricity in residential real estate management. Explore how this customer-focused approach is reshaping...
Adapting to evolving priorities of residential tenants
Explore changing tenant priorities and their impact on landlords. Discover the shift towards peace, quiet, and privacy over traditional factors. Learn about the demand for comfortable work-from-home environments and the willingness to pay for communal workspaces. Achieve tenant satisfaction and success in real estate with a holistic living experience. Read more now!
In our recent tenant survey, we observed a significant shift in what tenants prioritise when scoping out rental properties.
In this blog post, we shed light on the changing expectations of tenants and their implications for landlords.
Let’s dive in!
The impact of the remote revolution
We conducted a survey of 1750 residential tenants across the UK, France and Netherlands and found that the majority of participants prioritise peace, quiet and privacy when considering a rental property.
This isn’t that surprising. What was a little more unexpected was the fact that proximity to schools and workplaces—traditionally deemed critical factors—took a backseat.
Well-maintained shared spaces took higher priority, suggesting an increase in demand for comfortable and productive work-from-home environments.
In fact, 72% of respondents said they would be willing to pay additional rent for communal workspaces.
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While property value tends to be higher in areas with better accessibility to employment centres and schools, the prevalence of remote working could change this.
Commuting stress, travel costs and the appeal of flexible working draw people away from traditional offices and into coworking spaces and home offices.
This may lead to commercial property developers to introduce additional amenities to attract people back to the office.
That said, the remote working revolution is here to stay, and residential developers should start thinking of ways to better accommodate this shift.
A need for a holistic living experience
Additional factors influencing tenant preferences include reliable WiFi connectivity, and easy access to green spaces. There’s clearly a desire among modern tenants to have the essentials closer to home.
A more holistic living experience—one that fulfils both professional and personal needs—will become a differentiating factor for real estate companies going forward.
Many landlords already understand this, and are responding by providing co-working spaces and supplementary services, as well as implementing digital platforms whereby tenants can reserve and pay for these services.
As we’ve already mentioned, what stands out from our survey is the willingness of tenants to pay for these enhanced living experiences.
Take a localised approach
There appears to be a growing realisation that a flexible and accessible living environment is crucial, especially for individuals working from home.
Amenities, green spaces, peace, quiet and privacy all play into this. But it’s important not to simply take a one-size-fits-all approach here.
No one wants to exist in a vacuum. Therefore, it’s important to strike a balance between providing quiet and privacy and facilitate interaction with neighbours and a sense of community.
By identifying different personas and tailoring rental communities accordingly, landlords can attract tenants by offering the facilities and services that best suit their requirements.
This localised approach highlights the potential for market segmentation to address the diverse needs of tenants.
Real estate, as an industry, often takes time to adapt to changing trends. However, the current shift in tenant priorities is not merely a knee-jerk reaction to COVID-19.
It represents a longer-term trend that has been accelerated by the pandemic. Real estate professionals are gradually catching up to these evolving demands, recognising the importance of creating living spaces that cater to the holistic needs of tenants.
As the industry continues to adapt and innovate, it is crucial for landlords to keep pace with changing expectations to ensure tenant satisfaction and long-term success.