Square footage used to be the king of the rental market.
Today? Not even close.
Something entirely different is going on in today's rental landscape. Tenants are seeking an apartment that "feels" like home from the moment they walk through the front door. A place with personality. Swagger. Feelings.
Plus...you'll love this....the research supports every bit of it!
Cozy studios with characters are beating cavernous shoeboxes any day of the week. If you're a landlord, property manager or renter wanting to know what's what these days, read on.
Inside This Guide:
Why Atmosphere Beats Square Footage
The Lighting Factor: Setting The Mood
What The Data Says About Modern Renters
The Square Footage Trap
Building Atmosphere On A Budget
Why Atmosphere Beats Square Footage
The rental market has shifted in a massive way.
Buyers used to walk into homes with a tape measure and a checklist in hand. Square footage was at the top of that list. Now, it's only one small factor in a much larger equation.
Modern renters want a home that:
Feels warm and welcoming the moment you walk in
Has personality and character
Lifts the mood after a long day at work
Looks great on social media
The atmosphere can make or break all of these feelings. A 2,000 square foot apartment can feel uninviting, barren, and completely void of life. A 600 square foot studio can feel like the warmest place in the world.
Guess which one rents faster every single time?
The Lighting Factor: Setting The Mood
If atmosphere is the goal, lighting is the secret weapon.
LED lights are currently dominating the rental market. Electric discharge lighting operates when electrical current flows through a gas. The result is an exciting glow that transforms any room. This includes neon tubes, fluorescent light bulbs, and more.
The most popular electric discharge lighting trend in rentals right now? Glass neon signs.
Neon signs have really seen a resurgence in interior design lately. Not only do they bring colour, warmth, and personality into your space. They also don't take up any valuable floor space. All you need is one neon sign to turn that boring blank wall into the coolest spot to take pictures in your whole house.
And the numbers prove that renters really do care about lighting...
A new industry survey found that 79% of renters prefer soft layered lighting to set a mood. Bright overhead lighting is soooo last season. Accent lighting is where it's at.
Want to know what renters want even more than that? 87% of renters say natural light is important when choosing an apartment to rent. Bright lights.
What The Data Says About Modern Renters
Want more proof that the atmosphere is winning over square footage?
Here is some data that should completely change how property owners think about rentals:
79% of renters want soft, layered lighting in their space
87% of renters prefer staying in over going out
50% of renters want smart lighting to set the mood
72% of renters stick to minimalist design with warm neutrals
The "stay in" trend is the biggest game changer of all.
New research revealed that 87% of renters prefer to live at home instead of going out, and they're styling their homes accordingly.
When people are spending more time in their rental properties, they care significantly more about how it feels to be in that space. That bland beige box just won't do. It needs to work as their sanctuary when they come home from a stressful day - not just a bedroom.
That's a huge change in renters' priorities. Landlords who don't listen will be left behind quickly.
The Square Footage Trap
Most property owners get stuck thinking bigger is always better.
But here is why that is a huge mistake:
Bigger spaces cost more to heat and cool
Bigger spaces are way harder to keep clean
Bigger spaces need more furniture to feel finished
Bigger spaces do not automatically equal "better"
Renters today are smarter than that. They want a place that functions for them - not one that is simply "large". An atmosphere-filled property can command a higher rent per square foot than a massive property lacking atmosphere.
That is a fact backed up by the numbers.
Bonus: Mood lighting can also make a small space appear bigger. A smaller room that is well lit with the proper decor will seem larger than a dark box ten times the size. Lighting and decor tricks the eye every time.
Building Atmosphere On A Budget
Don't have a massive renovation budget? No problem at all.
Seriousness can be achieved with just a few simple changes. Investors that implement these suggestions experience quicker rental agreements, increased rent and longer tenancies overall.
Here are the top atmosphere wins for any rental property:
Swap your lighting for better ones first - lighting is the biggest atmosphere multiplier
Add greenery - plants are cheap and instantly warm up any space
Use mirrors to bounce light around and make rooms feel bigger
Choose warm paint colours - cream, beige and soft greys all work brilliantly
Throw in one statement piece - whether it's art, a neon sign or an interesting light fixture
Lighting is the biggest atmosphere multiplier of them all.
Layer various lamps and lighting at varying heights throughout the room. Combine floor lamps with table lamps, accent lighting, and pendant fixtures. You can even add some electric discharge lighting such as neon for a fun pop of character.
The total cost? Often less than a single month's rent.
The result? A place any renter will love upon entering.
The Takeaway
Atmosphere is the new currency of the rental market.
Square footage once ruled the market. Now it's only one factor in a much larger equation. Today's renters want:
How a space actually feels day to day
Lighting quality and overall mood
Personality and unique character
A space that works for their lifestyle
Owners who want to beat the competition have one basic strategy. Focus less on size. Focus more on feel.
Brighten it up. Make it your own. Create a space you actually want to lounge on the couch tonight.
They will notice. The kind of renters who care will notice. And they will gladly pay more rent to have that privilege.
That is the real secret to winning the modern rental market.
