In a word, yes! Particularly when considering an investment property with a view to renting it out as an executive rental. We’ve all heard the adage that a studio or one bedroom property is a bad investment when it comes to resale value. And one could be forgiven for thinking that the opposite might apply to Executive rentals. Surely there are plenty of single professionals needing short or long term accommodation that would be happy in a studio? If your company has relocated you interstate for a short to medium term stay, surely you are consumed with work, not your living quarters.
Unfortunately, in our experience most professionals prefer at least two bedrooms, which affords them the luxury of a place to work and a place to sleep. Equally, most renters associate more bedrooms with a larger living and entertainment area and the option to accommodate family and friends whilst they’re on an extended stay. Similarly, companies and individuals seeking Executive rental accommodation, do so in order to highlight their distinct contrast with hotels. An airy, light and bright apartment or house will win over the omnipresent beige cube of a hotel room every time. It would be remiss of us not to mention the increased return on investment a two or more bedroom property has the capacity to generate for an investor. As property managers we are constantly asked, ‘Does more bedrooms equal a higher return?’ The answer is not that simple. Prior to providing an estimate to a home owner, any professional agent will conduct a thorough assessment of the property and factor in many variables, only one of which includes the number of bedrooms a property has. However, generally speaking, a property is only worth as much as its perceived value. And the perceived value for a renter is increased with an increase in the number of bedrooms and the associated large living area as mentioned above.
So, in answer to the above question ‘Does size matter?’ The answer is Yes. But not in the way you might think!