4 Data-Backed Rental Home Feature Trends in the City of Detroit for 2023
The City of Detroit is an ever-evolving landscape for real estate investors.
As the city continues to transform and reinvent itself, the demand for rental properties shifts along with it—opening up exciting opportunities for those looking to diversify their portfolio and improve their current properties to attract more tenants.
Curious about what home feature trends are popular in this bustling hub? Look no further. We will dive into what features are the biggest draws on the Detroit market, and how understanding tenants’ preferences can help guide your investment decisions.
4 Rental Home Features Trends to Leverage in 2023
From chic and modern apartments to spacious homes with all of the amenities, Motor City has it all. But tenants have specific needs and wants—you’ll want to know them to keep your properties attractive. So whether you’re property is in bustling Downtown Detroit or in a quieter suburban area, here are the trends that’ll give you a competitive edge against other rentals:
#1 Offer Outdoor Livin’ with a Fenced Yard
With a fenced yard, people can run, jump, play, and even relax without ever leaving the property. Let’s not forget about our fur babies that can enjoy this, too (if you allow pets!). Whether tenants are looking to entertain friends, spend time with family, or enjoy a quiet afternoon alone, a fenced yard provides the perfect environment to do so—and the added benefits of privacy and security.
A fenced yard adds value to homes, and according to Redfin, it’s the feature with the highest sale-to-list ratio at 110.1%, which means people are willing to pay more than the listed price for properties with fenced yards. It’s not that expensive either—the average price for installation is around $12 to $35 per foot, depending on the fence’s material and height.
#2 Install New Heating Technology
Imagine never having to worry about chilly winter nights, with a new boiler keeping your home toasty and cozy… That’s what tenants want. Not only will a new boiler provide warmth, but it also increases the overall efficiency of the heating system, saving you (and the tenants) energy and money in the long run.
Around 1.7% of home listings in Redfin feature new boilers, a heating trends to look for in older homes in 2023. Older, low-efficiency boiler systems have an efficiency of around 56% to 70% AFUE while newer, mid- to high-efficiency boiler technology has an efficiency from 80% to 98.5% AFUE.
Yes, new heating is a bit of a hefty investment. But do the math and you’ll see that it’s worth it.
#3 Give ‘em Space with a Large Living Room
For many tenants, having a large living room is a crucial factor in achieving that luxurious living experience. After all, this is where they’ll spend most of their time relaxing, entertaining friends, and binge-watching their favorite shows.
A big living room is a more common feature than a new boiler, taking up 2.8% of homes for sale (Redfin). The spaciousness not only offers comfort but also an impressive aesthetic that can make anyone feel like a king or queen in their own home. So, it’s no wonder why tenants are on the hunt for properties that offer them the chance to stretch out and indulge in the sweet life.
Of course, if you already have a property, there’s nothing you can do to increase its living space (unless you’re willing to tear down walls). But the idea is to let tenants imagine all the things they can do in the spacious, beautiful living room—which only takes creative wording in your listing.
#4 Let Them Imagine a Prestigious Dining Experience
A formal dining room is more than just a place to eat. Instead, it’s a statement. A bragging right, even. Tenants with formal dining rooms enjoy the elevated experience in the property—something that makes them feel like they’re part of a higher social class. It’s psychology!
Plus, it’s not just about the elegance, but also the memories created around the table, especially if your property is targeting family tenants. From household dinners to holiday gatherings, a formal dining room never goes out of style and will always leave a lasting impression.
Looking at the numbers, the median list price for houses in the City of Detroit is $70,000, according to Redfin. Meanwhile, the median list price of houses with formal dining rooms is $119,900. That’s a huge jump in property value, which is good news if you can easily flip and decorate the living room of your current property (instead of buying a property with a pre-existing, beautiful living room).
Follow the Trends to Attract Endless Tenants
The City of Detroit is showing no signs of slowing down when it comes to rental property investing. To stay ahead of the competition, embrace the trendsetting features that’ll get you on the wish list of potential tenants, making your property the must-have in the neighborhood.
Do managing rentals take too much time? Not sure how else to make your property pop? Contact us at Logical Property Management. We’re experts in the Metro Detroit market, and we can help you run your rental business like a pro—trends and all.