How to identify a potential tenant for your investment?

Investing in a residential property requires analyzing many factors affecting its profitability. These also include appropriate identification of the potential tenant of a given investment, which will help avoid downtime. How does location determine the tenant?

Developing effective ways of finding tenants is an important step to the prosperity of an investor’s business. Tenants are the driving force of investment properties, and appropriate preparation will not only stabilize the assets for a long time, but also increase the potential of the property.

So what should you focus on when determining a potential tenant of a given investment?


The location can be divided taking into account various factors, but the main division should include tourist, business and urban space. Division into such zones will make it easier to select a model tenant, using known patterns, because each group has its own requirements.

For example, parents with children value a quieter neighborhood with access to basic services, educational institutions and a park in the area, while people starting their professional lives will look for an efficient connection to the city center and popular office centers. Students, on the other hand, are looking for a convenient distance from the university, while tourists will focus on connecting their apartment to popular attractions in the region.

It is also worth taking a look at the buildings in the vicinity of a given property, which will also help to evaluate potential tenants who are willing to live in the area.


Short- or long-term rental?

The period for which we want to rent a given premises is also important. When investing in a property intended for long-term rental, it is worth checking access to services in a given area – availability of shops, educational institutions, public transport stops, restaurants and clinics. The more the area offers, the wider the group of tenants interested in renting a given apartment.

People renting a property for a few or a dozen or so days will be more interested in the proximity of restaurants, shops and good connections to the city center.

Let’s not forget that identifying a model tenant will make arranging the apartment much easier, responding to the needs of a given group of tenants. Preparing a property that meets the requirements of tenants will significantly speed up finding people willing to live in our investment.


Time devoted to analyzing the environment

The above-mentioned activities require good organization and time to thoroughly understand the advantages and disadvantages of a given property. You can act on your own, but identifying and then finding the right tenants and managing the property can be time-consuming. It is worth considering the help of a property management company.

Experienced managers efficiently find tenants, provide full service of the premises intended for rent and offer additional services. The property owner can therefore rest easy, giving full control over the rental to a company striving for the best possible return on investment. Prices for such services vary depending on the solution chosen – commission settlement is usually more favorable.



An investment in real estate should be preceded by a detailed analysis of factors improving its profitability. Identifying a tenant is essential to protect against downtime or reduce them to a minimum. The longer the apartment is empty, the less we earn from it, so we should know the target tenant from the beginning.

The location says a lot about a potential tenant – so it is worth taking a closer look at the surroundings of a given property and analyzing the needs of specific target groups.

Contact us, we will be happy to help you find a place that fully meets your needs!


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