One of the most crucial aspects of successful property investing is ensuring consistent tenant demand.
A buy-to-let property that remains in demand will not only stay occupied but provide a steady rental income, making it a more secure and profitable investment.
Let’s explore how to make sure your buy-to-let property is always attractive to potential tenants. Let's break it down into three key areas:
- What drives demand in an area?
- What property types are most desirable?
- How can you check demand first-hand?
1. Testing Tenant Demand in Your Chosen Area
After identifying a potential investing area and property type, it’s essential to double-check tenant demand before committing to a purchase. Here are two practical methods to help verify the demand for rentals:
Rightmove search alerts: Set up a search on Rightmove for properties to let in your chosen area, filtering for the same type of property you’re planning to invest in. Enable instant notifications and monitor how quickly properties are being let. If they’re consistently getting snapped up within days, that’s a strong indicator of demand.
Track property listings: Once you receive alerts, save the relevant properties to your Rightmove account. Keep an eye on how long it takes for these properties to be marked “let agreed.” This can provide a clear picture of how fast rental properties are being taken up in that area.
Additionally, you can call local letting agents. While enquiring about their services, ask how long properties typically take to let in the area and whether there is strong tenant demand. It’s wise to contact multiple agents (around 3–5) to get a balanced view. Consistent positive feedback is a good sign, but if responses are mixed, you may need to research further.
2. What Drives Tenant Demand?
Tenants choose where to live for a variety of reasons, and understanding what drives demand is key to selecting the right area for your buy-to-let property.
Some of the most important factors that consistently attract tenants include:
Proximity to amenities: Areas with easy access to the essentials are always in demand. Look for locations within walking distance of:
- A large supermarket
- The town centre
- Good primary schools (preferably with strong Ofsted ratings)
- A train station, especially one on a mainline route
- A bus station
- Multiple large local employers
If an area ticks all of these boxes, it will likely remain attractive to tenants, ensuring steady demand over the long term.
3. What Property Types are Most Desirable?
The property itself plays a major role in its attractiveness to tenants. Different tenant profiles have different needs, so it’s important to consider your target tenant when choosing a property type.
Here’s an overview of what various tenant types typically look for:
- Young professionals often prefer modern apartments with easy access to city centres and transport links.
- Families seek spacious homes with gardens, nearby schools, and local amenities.
- Retirees tend to favour bungalows or ground-floor flats with easy access and features like wet rooms.
To make a property more desirable, avoid these common deal-breakers:
- Properties on main roads (due to noise and safety concerns)
- Homes on steep hills (which can be inconvenient)
- Electric heating (due to its inefficiency and higher running costs)
- Single-glazed windows (which lead to poor insulation and higher bills)
On the other hand, features that tend to attract tenants include:
- Large bedrooms for added comfort
- A combination of a shower and bath for flexibility
- Small, manageable gardens or yards
- Modern, clean interiors that are ready to move into
Once you’ve identified a desirable property type, use the method highlighted above to confirm how quickly similar properties are being rented out in the area.
4. To ensure consistent tenant demand, focus on three main factors:
- Target the right tenant profile.
- Choose an area that meets their needs.
- Select a property that matches what they’re looking for.
By taking these steps, you’ll be able to make informed decisions and invest in properties that are likely to stay occupied and generate steady rental income. Checking tenant demand before purchasing is a critical step that can save you from future vacancies and headaches.
For new investors, understanding the importance of tenant demand can make a significant difference in securing a profitable buy-to-let investment. Stay focused on the needs of your target tenants, and your property will remain in demand for years to come.