What Tenants Actually Want: The Gap Between Investor Assumptions and Market Demand

Many landlords investing in high-quality rental properties assume they know what will appeal to the best tenants: oversized units, designer kitchens, expensive finishes. But tenant expectations do not always align with investor instincts. How well a unit functions on a practical level is critical; tenants are placing greater value on usability, thoughtful details, and whether a space supports the realities of daily life. To attract and keep renters, properties need to combine visual appeal with practicality.

The most sought-after rentals are not necessarily the most expensive or most ornate. They’re the ones where everything works, nothing feels neglected or overdone, and the setup reflects how tenants actually live.

Functionality Over Flash

A common misstep among landlords is mistaking visual upgrades for substance. While polished countertops and high-end fixtures enhance a unit’s desirability, functional shortcomings such as poor lighting, inadequate sound insulation, a lack of usable storage,  insufficient outlets, uncomfortable or impractical furnishings and poor layouts will outweigh the aesthetic appeal. Practical features, such as in-unit laundry, reliable temperature control, and layouts that allow for separation between work and sleep areas, are prioritized.

A unit that is clean, quiet, easy to maintain, and thoughtfully laid out will outperform a larger or flashier one with design-forward features but basic functional gaps. When aiming for a higher-end, furnished, or executive rental, be sure to have these essentials in place before adding the luxury finishes and upscale amenities.

Aesthetics and Comfort

This is not to say that the appearance of a property, and how it feels, does not matter. Although many property owners believe they need to incorporate all of the latest trends to ensure a space looks modern, a classic, timeless look is preferable. Tenants are attracted to spaces that feel bright, calm, and cohesive, without being overly styled or impersonal. Natural light, neutral or warm-toned palettes, soft textures, and streamlined furnishings all contribute to a sense of comfort that photographs well for listings and provides ongoing appeal for living in.

Create spaces that feel livable and intentional. A clutter-free environment, tasteful artwork, layered lighting, and practical but comfortable furnishings show tenants that the unit has been thoughtfully designed with their experience in mind.

Layouts that Support Real Life

Investors often assume bigger is better, which is true to a point. However, smaller units can compete well with larger ones if they have better design. A well-proportioned 600-square-foot apartment with a defined bedroom, separate workspace, and enclosed kitchen will rent faster than a larger open-concept space that feels chaotic or awkward. This has become especially clear in mid- and long-stay furnished rentals, where tenants expect to be able to live comfortably for more than a week or two.

A good layout adds value, and it does not always require costly structural changes. Simple improvements, such as repositioning furniture to define zones, replacing oversized or mismatched pieces with right-scaled, functional alternatives, and adding dividers or shelving to visually break up open areas, can dramatically improve how a space feels and functions. Even small changes like installing blackout curtains in sleep areas or ensuring workspaces have proper lighting and outlet access can create a layout that feels intentional, balanced, and livable.

Strong Connectivity 

Tenants today expect fast, reliable, and private internet. For high-end rentals, this expectation extends beyond speed. Tenants look for secure, independent networks, as opposed to shared building Wi-Fi, coverage in every room, and the ability to plug into work instantly without hassle. Landlords who overlook digital infrastructure in favour of physical upgrades risk missing one of the most basic, non-negotiable tenant needs in 2025.

Pet-Friendly Policies

While offering pet-friendly units is not always possible or feasible, and many property owners have valid concerns about the potential damages, especially when the rental is higher-end or furnished, allowing animals may be advantageous. Listings that allow pets see higher tenant engagement and shorter time on market, as this opens up properties to a larger audience.

Clear size restrictions, additional deposits, and cleaning clauses give landlords the control they need, while opening access to this broader market. 

The Full Experience Matters

Even in units that show well, poor follow-through in operations can unravel tenant trust. Renters in the upper end of the market expect clean, properly maintained buildings, quick response times, respectful communication, and a lease process that feels transparent and professional.

Properties with strong management practices, including digital lease systems, fast repairs, and clarity around expectations, had far higher lease renewal rates than similar units with less consistent follow-up. Quality renters are willing to pay for a better experience, and are quick to walk away from situations where that experience is disjointed or poorly managed.

Catering to Real Demands

Landlords who invest in details that matter, offering quiet units, strong layouts, professional internet setup, and responsive management, can outperform competitors.

The most desirable rental properties are not necessarily the most luxurious, but the ones that offer a complete package. Marco Property Management can help with this, providing targeted support. Their services include consulting, interior design, and full furnishing, helping owners create units that are not only visually appealing but also practical, well-equipped, and market-responsive.

From advising on functional layouts to sourcing right-sized furniture and more, Marco’s team focuses on the details that drive tenant satisfaction and retention. Their experience in furnished and executive rentals ensures properties are livable and competitive, without wasting money on upgrades that miss the mark.