Designing Rental Spaces That Attract First-Time Renters

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Attracting first-time renters isn’t just about offering a place to live — it’s about offering a lifestyle. 

Today’s renters, especially millennials and Gen Z, are looking for more than just four walls and a roof. They want spaces that meet their modern needs, support their lifestyle, and even help them build their credit score. So, what design elements can property owners incorporate to stand out from the competition and appeal to this key demographic?

This guide highlights essential design features, from smart home technology to eco-friendly upgrades, that can help landlords create inviting, functional, and marketable rental spaces. By understanding what first-time renters prioritize, you’ll be equipped to make affordable property upgrades that deliver a high return on investment.

Why Cater to First-Time Renters?

First-time renters represent a growing demographic with unique preferences and needs. They’re often younger, tech-savvy, and value affordability and convenience. Here’s why catering to them matters:

• High Demand: Young professionals, students, and those entering the workforce for the first time drive demand for rental spaces.
• Potential for Long-Term Tenancy: When first-time renters have a positive experience, they’re more likely to renew their lease.
• Higher Willingness to Pay: Renters are willing to pay more for modern, well-designed properties. According to the Journal of Property Management, well-designed spaces can command up to 10% higher rents.

Key Design Features to Attract First-Time Renters

Here are the essential features to incorporate into your rental properties to appeal to first-time renters:

1. Modern Appliances and High-Quality Finishes

• What Renters Want: First-time renters expect modern finishes, like stainless steel appliances and granite countertops. The Journal of Property Management found that these features significantly increase the perceived value of a rental.
• Why It Matters: Upgrading appliances and finishes signals quality and care, making properties more appealing.
• Quick Tip: When planning renovations, prioritize kitchens and bathrooms — these rooms can make or break a renter’s decision.

2. Smart Home Technology

• What Renters Want: According to Apartment Therapy, renters are drawn to smart thermostats, keyless entry, and app-controlled lighting. These features appeal to tech-savvy tenants and improve convenience.
• Why It Matters: Smart home technology enhances security, reduces energy costs, and supports sustainable living.
• Quick Tip: Offer renters the ability to customize smart home features, like adjusting lighting and temperature controls.

3. Flexible Living Spaces

• What Renters Want: Renters want adaptable spaces that support work-from-home setups and multifunctional living. Apartment Therapy highlights this as a top priority.
• Why It Matters: Hybrid work is here to stay, so creating designated workspaces or flexible layouts can make your property more appealing.
• Quick Tip: Add a built-in desk or wall-mounted shelving to create functional, space-saving work areas.

4. In-Unit Laundry

• What Renters Want: 72% of millennial renters consider in-unit laundry essential, according to the NMHC Renter Preferences Survey.
• Why It Matters: Laundry access within a unit is a major differentiator for rental properties, especially for first-time renters.
• Quick Tip: If adding in-unit laundry isn’t possible, consider offering upgraded on-site laundry facilities as a cost-effective alternative.

5. High-Speed Internet Access

• What Renters Want: 86% of millennials prioritize access to high-speed internet, according to NMHC’s survey.
• Why It Matters: With more people working from home, fast and reliable Wi-Fi is non-negotiable.
• Quick Tip: Partner with internet service providers to offer exclusive deals or bundled packages to renters.

6. Pet-Friendly Accommodations

• What Renters Want: 68% of millennial renters own a pet, according to NMHC’s data, and they’re willing to pay a premium for pet-friendly policies.
• Why It Matters: Pet-friendly properties attract a broader pool of tenants and lead to longer lease terms.
• Quick Tip: Designate pet-friendly areas, like a dog run or pet washing station, to stand out from other rental options.

7. Safety & Security Features

• What Renters Want: According to Zillow’s research, 80% of renters prioritize safety features like secure entry systems and well-lit common areas.
• Why It Matters: Feeling safe at home is a fundamental need, and providing security measures can increase tenant satisfaction.
• Quick Tip: Install security cameras, motion-activated lights, and keyless entry systems for peace of mind.

8. Natural Light & Outdoor Spaces

• What Renters Want: Bright, sun-filled rooms and outdoor spaces are major draws, as highlighted by Apartment Therapy.
• Why It Matters: Natural light enhances mood, boosts productivity, and reduces energy usage.
• Quick Tip: Maximize light with larger windows, lighter paint colors, and reflective surfaces.

9. Sustainable Design Features

• What Renters Want: 70% of renters are willing to pay more for eco-friendly features, according to Forbes.
• Why It Matters: Sustainable features attract eco-conscious renters and reduce utility costs.
• Quick Tip: Add energy-efficient appliances, LED lighting, and sustainable materials like bamboo flooring to appeal to environmentally conscious renters.

Affordable Property Upgrades

Attracting first-time renters doesn’t require a complete overhaul. Here are cost-effective upgrades that make a big impact:

• Paint with Neutral Tones: Fresh, neutral paint creates a clean and welcoming environment.
• Install LED Lighting: Energy-efficient lighting is a simple, affordable way to reduce energy bills and attract eco-conscious renters.
• Upgrade Cabinet Hardware: New cabinet pulls, and knobs give kitchens and bathrooms an instant facelift.
• Create Community Spaces: Shared spaces, like outdoor courtyards or community lounges, foster a sense of belonging.
• Embrace Pet-Friendly Designs: Install pet-washing stations or designate outdoor areas for pets to make your property stand out.

How This Approach Benefits Landlords

Designing rental spaces that attract first-time renters offers numerous benefits for property owners.

• Higher Rent Potential: High-quality finishes and modern features allow landlords to charge premium rents.
• Lower Vacancy Rates: Properties with sought-after design features have higher occupancy rates.
• Long-Term Tenancy: First-time renters who love their space are more likely to renew leases, reducing turnover costs.
• Competitive Advantage: Stand out from other rental properties in your area with thoughtful, renter-friendly designs.

Conclusion

Attracting first-time renters requires a blend of modern design, practical upgrades, and a deep understanding of renter preferences. By focusing on features like smart home technology, in-unit laundry, and pet-friendly policies, landlords can create spaces that meet renters’ needs and stand out in the rental market.

The return on investment is clear. Properties with modern, thoughtful design elements not only attract higher-paying tenants but also keep them for the long term. From simple upgrades like fresh paint to larger changes like adding smart home tech, these strategies offer a significant payoff. And for renters looking to build their credit score, these features make the space even more appealing.