As housing becomes more expensive, especially in populated urban areas of developed economies, home retailers must ensure they have strategies

in place to cater to the needs of consumers residing in rental properties.

 

Countries such as the UK have experienced huge growth in the home rental economy over the last ten years; in particular within the 35-44 age group, where the proportion of renters doubled from 13 percent to 26 percent. The US also saw the number of households in rental agreements increase from 31.2 percent to 36.6 percent over a ten-year period (2006-2016), demonstrating the ever growing influence and importance of renters to the home retail sector.

 

By understanding the home improvement requirements and constraints of this segment, home retailers can adjust their offerings to appeal to the needs of buyers looking to transform their rental properties into homes that reflect their personalities and preferences.

 

The rental revolution and impact on home improvements

 

A market analysis of 32 major cities around the world by Knight Frank showed that house prices, on average, grew 24 percent over the past five years, compared to average incomes which grew by only 8 percent over the same period. While it is tempting to assume that affordability is the only criterion for renting, this is far from the case. Our graphic below demonstrates that benefits such as locational flexibility or on-site facilities are very important to consumers.

While renters may not own their properties, they are just as passionate as homeowners when it comes to adapting their homes to match their personal tastes and requirements. This is especially true for those in long term tenancies, which can span many years.

 

GoCompare found in 2015 that while only 14 percent of properties were offered as unfurnished, more than 60 percent of renters preferred to move into unfurnished properties. The reason is clear: an empty property is a blank slate for the tenant to decorate and furnish in the manner that best suits them. In order to accommodate this segment, home retailers need to provide products and collections that can be seamlessly added into existing layouts without structural alterations, alongside functionality such as 3D planning, which enables users to view how the products will fit in the exact room size and shape.

 

Home improvement options for renters and landlord considerations

 

When planning home improvements for rental properties, there are two main categories to consider, each offering different opportunities and restrictions to renters:

 

1. Minor home improvements, including:

• Laying down new flooring
• Adding storage solutions
• Adding furniture
• Painting walls or cabinets, hanging pictures
• Switching out fixtures and fittings such as lighting fixtures, curtain poles or doorknobs

 

2. Major home improvements, including:

• Significant redesign of the property’s interior
• Knocking down or building an internal wall
• Adding an extension or conservatory
• Making a home accessible to accommodate disability or old age

 

Most minor home improvements can be carried out autonomously by renters, often simply reverting to the original fitting or appearance upon exiting the property, fulfilling their contractual obligations. However, for major home improvements, express permission would need to be sought from landlords and potential funding or part-funding required. This can elongate the time taken to progress projects through to completion, with renters needing to provide the exact details for the suggested improvements alongside visual proposals.

 

Furniture also plays an extremely important role in the overall look and feel of a rental home and is often where the most budget is spent by renters. Furniture is considered a key investment and renters build strong emotional attachments to the pieces they have collected over the years. For renters looking to move multiple times, it is crucial that any owned furniture is both portable and universal, able to slot in and complement existing room layouts and furnishings wherever possible.

 

Utilizing 3D planning solutions to maximize opportunities within the rental market

 

For home retailers looking to appeal to the collective buying power that renters present, 3D planning solutions that allow consumers to map out and visualize the room with a high-quality 3D render will prove invaluable. Whether mapping out a furnished or part-furnished room, modern 3D planning solutions like HomeByMe for Home Retailers allow renters to input the exact dimensions and shape of any room, no matter how irregular. From this point, the renter can build upon existing layouts or create new ones entirely, with access to live product catalogs that offer a range of possibilities with transparent pricing for budget control.

 

When undertaking home improvement projects requiring permission from the landlord, 3D planning solutions optimize a traditionally lengthy process by allowing renters to download and share hyper-realistic 3D rendered images that can be presented as proposals. By providing an accurate representation of the changes requested by the renter, the landlord can make quicker and more informed decisions, increasing conversions for sales representatives and accelerating the sales cycle.

 

Opportunities for home retailers to tap into the rental market are immense; those adapting their strategies with flexible solutions that deliver value to both renters and landlords can expect to see significant financial gains.

Top 6 Reasons People Rent Properties

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