Targeting a specific market does not mean you’re excluding people who don’t fit the criteria that you believe your property will appeal to. Target marketing actually allows you to wisely focus on the most effective way to reach out to potential tenants and make your property more appealing.
The benefits of understanding the demographics of your future tenant include optimum rental return and more options in tenant selection. What you can end up with is honing in on a niche market that will feel valued and supported by your sharpened focus on their specific wants and needs. For a property investor, this can result in higher rates of return.
Demographics can include several factors such as age group, income etc. Assess the features of your property and see how they can relate to particular demographics. For example, a house located near schools and parks will often appeal to a family demographic. Your future tenants here would most likely pay more for certain features, such as air conditioning and a pet-friendly, secure, fenced yard. If your property is close to a university, an appealing feature to students would be a good-sized bedroom that could accommodate a desk. Storage features are a plus, like storage cages for professional couples who might have bikes.
Speak to your property manager to determine how you can make the most of your property investment through understanding demographics. You could then see how yours stand against comparable properties and what are the steps you can take to benefit your target audience.