Will this investment property attract good tenants?

Most people think a rental appraisal is simply about working out how much rent a property will achieve. While that’s certainly part of it, an experienced property manager should also be able to tell you how appealing that property will be to the types of tenants you’re hoping to attract.

This article is based on the questions we’re most often asked by landlords throughout the Wellington region and the advice we provide during rental appraisals.

Recently, we were asked to provide a desktop rental appraisal for investors considering the purchase of an investment property in Ngaio, Wellington. While the likely rental range was important, there were several other factors that deserved equal attention before they committed to buying.

The Issue
The investors wanted to know what rent the property was likely to achieve and whether it would make a good investment.

On paper, the property had three bedrooms, which is often attractive to families and can support a healthy rental return.

However, when our experienced business development manager, Lisa performs a rental appraisal, she looks beyond the number of bedrooms and considers how the property will perform in today’s rental market.

What We Found
Although the home was marketed as having three bedrooms, two of them were single-sized rooms.

This immediately narrowed the likely tenant pool. The property would appeal to a family with younger children or perhaps a professional couple needing a home office, but it was unlikely to attract professional groups sharing a home. This tenant group typically looks for generous bedroom sizes and, with multiple incomes contributing to the rent, can often sustain higher rental prices. Likewise, families with older children may find two single-sized bedrooms restrictive, particularly when teenagers need space for study desks, storage and spending more time in their own rooms.

We also noted that the property didn’t include a garage.

While a garage isn’t essential, today’s tenants, particularly families, often place significant value on the additional storage it provides for bikes, outdoor equipment and general household items. Increasingly, garages are also viewed as a convenient place for EV charging.

In a market where tenants have plenty of choice, these features can influence which property they ultimately decide to rent.

The Solution
Rather than simply providing a rental estimate, we explained how the property’s layout and features were likely to influence tenant demand in the current market.

The investors appreciated receiving this additional insight, as it highlighted factors they hadn’t yet considered during their due diligence. It gave them a much clearer understanding of the property’s strengths, its limitations, and how those might affect its ability to attract quality tenants.

Why This Matters for Owners
When purchasing an investment property, it’s easy to focus on rental yield and potential capital growth. But one of the biggest costs landlords can face is vacancy.

In today’s market, where tenants often have plenty of properties to choose from, understanding what makes a home appealing can be just as important as knowing what rent it might achieve. Features that seem minor can influence how quickly a property rents and the calibre of tenants it attracts.

An experienced property manager offers more than a rental estimate. They provide practical insight into how a property is likely to perform in the real world, helping you make more informed decisions before you buy.

Written by Lisa Nimmo
Property Consultant and Business Development Manager | Manage My Rental

Lisa Nimmo works with landlords throughout Wellington, Lower Hutt, Upper Hutt and Porirua, providing rental appraisals and practical advice to help owners maximise returns, minimise risk and protect their investment properties.

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