Success in the letting industry hinges largely on the ability to find good tenants. And while it may be obvious what makes a good tenant, most landlords will agree that it’s not as obvious where to find them!
We looked at the profiles of 300 tenants who have moved into two bedroom Portico properties in London over the last couple of months, so we can tell you exactly who’s renting where.
Why does it matter? Knowing the prevalent tenant type in an area is not only interesting, it’s also extremely useful in terms of knowing how to present your property to achieve the best possible rental price.
Camden & Bloomsbury for students
Students are packing up their laptops and clean socks and heading to bookish Bloomsbury and cool Camden. In fact, 73% of the tenants who recently moved into a two bedroom property in Bloomsbury were students, compared to 62% in Camden. A high percentage of the tenants in Bloomsbury are foreign students studying at nearby UCL, and a high number of Camden’s students are from the equally prestigious Royal Veterinary College.
Letting to students can work out well for landlords. Student rental properties can often achieve better rental yields than average and rent payments are normally guaranteed and paid promptly by a parent or guardian. Additionally, if a foreign student doesn’t have a UK Guarantor, we normally take 6 months’ rent in advance. Students are willing to pay a premium to be within walking distance of the university, and are usually happy with minimal furnishings, as long as the property comes complete with a bed, sofa and a desk.
Clapham, Fulham & West Hampstead for young professionals
Looking to rent your property out to young professionals? You’ll find them in Clapham, Fulham and West Hampstead. Young professionals renting in Clapham and Fulham - the areas renowned for their great nightlife - are generally younger however (29 in Clapham and 30 in Fulham), and hold junior or mid-level finance roles, whereas the tenants living in West Hampstead hold more senior finance roles, and the average salary and age of a tenant is higher too.
Young professionals are extremely desirable tenants for landlords. They typically have university qualifications, a reliable, above average income, and they are prepared to pay premium rent prices to live in a popular area. Cash rich but time poor, a lot of young professionals use our cleaning services, which helps to keep the properties they rent in great condition.
They do have very specific requirements, however. Young professionals want to be within walking distance of a Tube station for commuting into the City for work, and often expect broadband to come with the property. They are typically looking for one or two bedroom contemporary properties, and will often turn a property down if it doesn’t come with a washing machine or a dishwasher.
Battersea & Dulwich for families in professional services
Battersea and Dulwich - a.k.a “Pram Springs” and the “new Nappy Valley” - tend to attract older tenants or families who have moved away from more central areas to get more for their money and increase their standard of living.
It’s no surprise therefore that the average tenant age is quite high in Battersea at 31 and in Dulwich at 30. 20% of tenants in Battersea work in professional services compared to 22% in Dulwich. The only real difference between the two tenant groups is that those with a higher income tend to gravitate toward affluent Battersea, and those looking for value for money head to up-and-coming Dulwich. Consequently, the average tenant’s salary in Battersea is 19% higher than the average tenant’s salary in Dulwich.
Acton & Hammersmith for graduates
Flocks of graduates soon to start their new jobs in the City are jumping on the central line and heading to Acton. It’s a quick and direct route into the West End, the City and Canary Wharf - the three biggest graduate employment centres in the capital - and new Crossrail plans are set to make the commute even more convenient. In fact, anyone who lives on the western fringes and works in central London will benefit from the infrastructure plans, as journey times to Bond Street, the City and Canary Wharf will be almost halved. Though it’s not on the central line, nearby Hammersmith is also home to a number of graduates, attracted by affordable rental prices and the fantastic transport links.
Fresh out of university, graduates typically have lower average salaries compared to tenants renting in other parts of London - £30,569 in Acton and £38,060 in Hammersmith. They’re looking for affordable rental accommodation that’s modern, furnished and easy-to-clean and maintain.
Highbury & Islington for high-earning creatives
Highbury and Islington attract affluent professionals who want an elegant house and a central London location. Both areas have a high number of tenants working in creative, media and legal roles, the majority of which are managers or in senior positions. Both areas also have a large range of property types available, from handsome period conversions to luxury, contemporary flats.
Tenants in Highbury have the highest average age at 35 and a high average salary of £62,568. Though the average age in Islington is lower at 31, the average salary is particularly high at £54,424. Career focussed and typically without kids, these tenants have high disposable incomes, and are prepared to pay a premium to live so centrally. They’re looking for properties with a bit of character, and are usually happy to take a property unfurnished.
Let us find you the perfect tenant!
We understand that in many cases, your rental investment may once have been your home. That’s why we go to huge lengths to find out everything we can about potential tenants, to make sure we find people who will look after the property just as well as you did. It’s also the reason why we have an in-house paralegal team, who do the detective work on every tenant we place, checking bank statements, references, passports and carrying out credit checks. We only approve a tenancy when we’re adamant we’ve found the perfect tenant for the property.
If you’d like to let your property with us, or if you would like an instant valuation or any information on the services we provide, give us a call on 020 7099 4000.