Over 34% of Kiwis rent their homes, and this number is going up each year. So, it’s no surprise that there’s a huge demand for rental properties. For investors, New Zealand’s housing shortage presents an excellent opportunity to invest in new housing. Not only are new builds exempt from Labour’s recent property laws but let’s face it – not all renters behave equally, and starting from scratch gives you the chance to build houses that attract tenants that are on the respectful end of the spectrum.

And that’s not the only reason why building rental properties is an attractive investment option. The percentage of renters in New Zealand has been steadily rising over the years, and while many still aspire to own homes, a lot now see renting as a permanent state rather than a stepping stone, meaning that there’s a market of lifelong renters that will only keep growing.

What good renters want

Comfort is a cornerstone – something that’s easy to cater for with new builds. Things like good insulation and extractor fans are a must, as they keep homes healthy, warm and dry.

Consider the demographic you want to target, too – if it’s professional couples, find a space with proximity to the city or to transport links. For families, try and get close to school zones. While most residential property developers tend to build outside of communities, there are some businesses, including Williams Corporation, that buy and build in existing suburbs near key amenities.

Other things that will turn renters towards your property is the inclusion of a carpark, extra bathrooms (especially for families), and storage space. New Zealand is also one of the leaders in pet ownership, so it doesn’t hurt to be pet friendly (if this is a selling point for your property, consider a fully-fenced outside section).

In it for the long run

With the scales tipping towards long-term renters, longer lease options could be a good way to attract committed tenants. According to a renter survey by Barfoot & Thompson, nearly 50% of the tenants interviewed had lived in their rental properties for over five years. Five-year tenancies (and longer) are common across European cities with low rates of homeownership. Options like this give you a secured source of income, and lets you form a stronger relationship with your tenants.

Smart investors know that new builds are a solid longer-term investment. And if your properties tick all the right boxes, you’re going to attract plenty of high quality prospective renters, which will help ensure you secure great, reliable tenants.