Do Amenities in Your Development Get You a Better Rent?

When it comes to rental properties, the allure of modern amenities can often be a deciding factor for tenants. But do these sought-after extras genuinely translate to higher rental yields for landlords? At Pride & Property Group, we frequently hear this question from both property owners and prospective tenants alike.

What Makes Amenities So Appealing?

In an increasingly competitive rental market, developments with features such as gyms, concierge services, communal gardens, and co-working spaces are gaining attention. Tenants today value convenience and lifestyle perks that make daily living easier and more enjoyable. But how much of this value translates into actual numbers on the rental income?

Sarah Field, Director at Pride & Property Group, shares her thoughts:

"We often see that developments with well-maintained amenities attract more interest, which can lead to shorter void periods. Tenants are willing to pay a premium for convenience, but it's essential to get the balance right. Overpricing a property just because it has a gym or a rooftop terrace may backfire if comparable units are priced more competitively."

Balancing Costs with Returns

While amenities can justify a slightly higher rental rate, landlords should also consider the associated service charges. Features such as lifts, concierge desks, and high-end communal spaces come with ongoing maintenance costs. If these costs are too high, they can eat into the rental yield.

"We always advise our clients to look at the bigger picture," Sarah continues. "It's not just about the rent you can achieve but how much you keep after expenses. A well-managed development with moderate service charges often offers a better net return than a high-spec building where costs spiral."

Location Still Reigns Supreme

Amenities may catch the eye, but location remains a dominant factor. Proximity to transport links, schools, and local amenities can often outweigh the benefits of on-site perks. Sarah points out that while high-spec developments in central or well-connected areas command strong rents, similar features in less desirable locations may not yield the same premium.

What Tenants Are Saying

From our conversations with renters, it is clear that priorities vary. Some are willing to pay extra for a building with a gym and concierge, while others focus on the size and condition of the flat itself. Understanding your target market is key.

Maximising Your Investment

For landlords wondering how to optimise rental income, it is crucial to find a balance. Sarah suggests, "Highlight the amenities in your marketing but don't rely on them solely to justify a higher rent. Well-presented interiors, a fair price, and responsive property management go a long way in retaining good tenants."

At Pride & Property Group, we work with landlords to set realistic rental expectations that reflect both market conditions and the unique features of each property. If you're unsure about how to position your rental property in the market, we can help you make informed decisions to maximise your investment.

Interested in learning more? Get in touch with our team today.