Seven things tenants look for in rental properties in Uganda

When looking for a new place to stay, people often have a wish list with different attributes of the property listed according to priority. These are usually communicated to brokers to help identify a property that meets those needs. Whereas priority differs from person to person, some common aspects attract tenants to rental properties. In this article, we will explore seven things tenants look for in rental properties in Uganda.

1.      Location

Before moving, someone first thinks about the area to which they would like to move. For tenants, the decision to move to a certain area is influenced by several factors: proximity to the workplace, infrastructure like paved access roads, and availability of schools in the neighborhood, all affect this choice. In Uganda, most of the renting population consists of young people who consider these factors a priority in their daily lifestyle. Locations that fulfill these needs are more appealing than others, and consequently experience more demand.     

2.      Security

No one wants to stay in an area where they constantly have to worry about their house being broken into or their car being vandalized. Landlords should pay extra attention to the safety of their tenants by employing security systems or personnel to man the properties. Alarm systems, CCTV cameras, and hiring armed security companies go a long way to give tenants peace of mind knowing that their property is safe.

Whenever a security incident happens, the landlord should ensure that it is handled promptly and tenants are given assurance that measures have been put in place to ensure that it doesn’t happen again. This will contribute to tenant retention and the overall performance of the investment property.

If you are choosing where to buy or build rental properties, it is wise to avoid investing in areas that have developed a reputation for having high crime rates.

3.      Parking space

It is disturbing to find a well-built high-end apartment block with barely enough parking to serve half the intended residents.  And yet this is a common phenomenon in Kampala. Developers sometimes neglect this basic requirement, despite city planning guidelines directing otherwise. They forget that it is in their best interests to provide ample parking space, because a majority of their target customers already own cars, and parking is a major influence on which property they end up renting.

Some developers have compromised by providing just enough parking for residents to park cars behind one another, necessitating one to wake up their neighbor every time they need to drive out of the compound. Such an inconvenience leads to high turnover as tenants eventually get fed up and look for better alternatives. Investors need to look into the suitability of the plots of land they choose to develop, or at least work with their designers to provide solutions that eliminate parking inconveniences at their properties.

4.      Condition of apartments.

In Uganda, the age of the building plays a major role in determining whether its demand will be high or not. This is mainly because we have a very poor maintenance culture. Tenants expect an older building to be plagued with defective plumbing and electricity systems. That is why new buildings are always given priority when looking for a place to rent. It is common to find two similar apartments in the same area going for different rental fees simply because one is newer than the other.

Landlords need to incorporate a culture of regular maintenance like applying a fresh coat of paint every once in a while. Rip out old plumbing items like toilets and showers and replace them with new modern appliances that will appeal to your potential customers.  Keeping your property in pristine condition will ensure that you have a constant stream of tenants, reducing vacancy rates. It will also enable you to charge higher rent.

5.      Design

The design of a rental unit could take various forms, some curated to the taste of the everyday tenant, while others target more sophisticated individuals. Depending on the type of tenant you wish to attract to your apartments, you can design the units to suit your specific goals.

One-bedroom apartments are more suited to single or couple residents, whereas people with families tend to look for two or three-bedroom apartments. This also means that the moment the couple in the first scenario gets children and the family starts to expand, they immediately start considering looking for an apartment with more bedrooms.  

Design can also be in terms of the spaces provided like open plan concepts, natural lighting, outdoor spaces such as balconies, availability of a home office, and the storage space provided. All these contribute to the demand for your apartment and the type of tenant you are likely to attract. When conceptualizing your real estate investment idea, consider the end user and their space needs before you zero down on a particular design.

6.      Extra services

Developers can seek an advantage over their competition by providing additional services to the tenants. These can include access to an internet connection, cable television, cleaning, and laundry services. Some go the extra mile to incorporate restaurant services into the building. All these create a distinction between your properties from the rest of the rental properties in the market. Such services can also be a source of extra income from the property, which improves the overall performance of the investment.

7.      Appliances

Although this is a new trend in Uganda, people are starting to catch up to the fact that rental apartments can come with already-fitted appliances. These include fridges, ovens, washing machines, and the like. Landlords are providing these amenities as an extra incentive to attract tenants.

Tenants in such apartments are happy with the fact that they do not have to spend on appliances that they may not need in their next residence, and are therefore incentivized to rent one that comes with these fittings. People also don’t have to worry about repair costs. For landlords, if it is not practical to have these in every unit, they should at least consider providing access to such facilities in the building.

When making decisions about real estate investment, you should consider these factors that will influence demand for your property. Looking at things from the tenant’s perspective and incorporating their needs into your products will ensure that you have a constant stream of customers. This will enable good performance of your investment.

To learn more about investing in Uganda’s Real Estate industry, visit https://www.barosgroupltd.com/

About the author;

Benard Sonko is a real estate investment manager and founder of Baros Group Limited. For comments and inquiries, you can reach him at +256742140251 or info@barosgroupltd.com