Purpose-built rental housing continues to take the private rental sector by storm. Rent Generation has never been so willing to pay more for added extras.
The rental construction industry has grown in recent years, as renting as a lifestyle choice has become more common. More and more real estate investors and owners are now discovering the sector as an investment option of the future.
Compared to a traditional rental purchase, a house built for rental tends to offer a lot more. Designed for tenants in particular, they often focus on building communities. Rather than staying a year before moving, these properties often attract long-term tenants, so a sense of community belonging is more important.
Another plus that often accompanies the industry is smart technology. Purpose-built houses and blocks tend to contain more of these features than a traditional rental.
Invest more to earn more
A new survey from construction operator for rent Wise Living sheds more light on this idea. He revealed that 85% of tenants wanted instant connectivity in their home, with access to very high-speed and TV packages. It also showed that three-quarters of tenants wanted smart lighting and heating, and about the same number wanted smart security systems.
Often, such smart home technology is standard in rental construction. But while it may make the property pay a higher premium than a more basic rental, it is certainly worth it. The survey found that tenants would pay an additional £ 1,178 per year for a more high-tech house – around 10%.
Part of this result is also due to the changing demographics of rentals. Renting rather than owning is an increasingly popular lifestyle choice for seniors. This includes older families and couples as well as young professionals. For investors and homeowners entering the industry, this means potentially higher rents over time.
Flexibility and convenience
The Covid epidemic has also played a role in changing people’s attitudes towards what they want in their homes. The rise of working from home is a major factor. This is something that real estate investors and homeowners should definitely consider when researching their next rental home investment.
Anne Malone, Head of Customer Experience at Wise Living, says: “Our results show that people want more than the basics from their rental homes – they are looking for a place that offers them a good quality of life as well as many do. their house. is now also their office. Very high speed broadband, in particular, is no longer just a “good to have”, but an essential utility for many households.
“Covid-19 lockdowns influenced our attitudes towards technology as we depended on it for remote work and streaming entertainment services, but that’s not the only reason. “
“In fact, the survey results reflect the broader changes that have taken place in the rental market for several years.
“We’re seeing a growing number of families and older couples opting for purpose-built rental properties in the suburbs, so it’s not just about young professionals living in downtown apartments. This is usually because they are looking for flexibility and convenience, which is why they want their home to be equipped with the latest technology as well.
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