How to identify and attract the right tenant for your property

There are many different types of tenants you can choose to target – from families and young professionals to students and corporate renters – and each group comes with its own unique set of benefits and considerations for your investment. 

The kind of tenants you're likely to attract depends heavily on the type and location of property you purchase, which in turn should be guided by your personal investment goals, strategy, and financial situation.

Take families, for example. If affordability isn’t a concern and your main aim is long-term capital growth from a property that will consistently cover its costs, letting to a family could be ideal – particularly if your property is in a sought-after area with good schools. 

To appeal to this group, you’ll need to invest in a well-sized home in a desirable neighbourhood. Outdoor space with enough room for children to play is also a strong plus. These kinds of properties tend to attract strong demand – both from renters and future buyers – meaning your asset should appreciate well over time. High demand and a good standard of accommodation also help reduce void periods. And because families often stay in one home for several years, this can offer welcome stability in the form of longer tenancies. 

If, however, your budget is more limited, renting to a professional couple might be a smart route. A furnished, modern flat or compact ‘starter home’, in a city or close to one with good transport links, is ideal. Professionals tend to value walkability to shops, cafes, gyms, restaurants, and nightlife, plus properties that are easy to clean and don’t require regular upkeep.  

Appliances being included – especially washing machine, dishwasher, and fridge/freezer – are appreciated, as are things like bike storage or allocated parking, secure entrances, and well-lit communal areas. 

Alternatively, if your priority is to maximise rental income – especially if you’re planning to replace your current salary and become a part-time or full-time landlord – investing in a House in Multiple Occupation (HMO) could be a more suitable option. This might involve renting out individual furnished rooms to working adults or letting the entire property to a group of students. 

While HMO properties are often located in areas with lower property prices (and potentially slower capital growth), they can deliver significantly higher rental income – often two to three times more than a standard single-let. These investments do require more hands-on management, due to multiple tenants moving in and out at different times, and they come with higher running costs. However, the potential rental yield continues to make them a popular choice among experienced landlords. 

Ultimately, your rental investment’s success hinges on attracting consistent demand from your chosen tenant group – and each one has specific needs when it comes to choosing a home: 

• Working professionals generally look for homes close to public transport links, restaurants, and leisure spots. They typically expect a furnished property with modern, high-quality interiors. 

• Families are drawn to areas with good schools, local amenities, and access to green space. They often prefer to furnish the home themselves and will value a secure garden. 

• Students need easy access to campus and often prioritise proximity to nightlife and sports facilities. Like other HMO tenants, they usually expect the property to be fully furnished and well-equipped. 

To attract the right tenants, it’s essential to understand and exceed their expectations. Once your finances and investment objectives are clear, the smartest next move is to speak with a qualified local estate and letting agent. They can advise on which property types are in highest demand, which tenant groups have limited supply options, and what you should offer to secure quality renters. 

And with the Renters’ Rights Bill expected to pass this summer – bringing with it some major legislative changes later this year – it’s more important than ever to have a trusted letting and managing agent by your side. This is especially true once Section 21 is abolished, making it vital to properly vet tenants and be clear about the tenancy arrangement you’re entering into. 

A qualified agent who’s already up to speed with the new legislation will be best placed to help you find tenants who are a good fit for your property, your risk appetite, and your financial goals – while keeping you compliant at every step. 

Want to know more about the lettings services LRG can offer you? Follow the link below to submit an enquiry and quote that you’re an NRLA member to find out more about the exclusive discount* we can provide.