The document provides a summary of key findings from a survey of tenants in the Carter Jonas property management network. Some of the main findings include: - Over 50% of respondents said they would be willing to pay more rent for a property with a recently renovated kitchen or bathroom. Access to outside space and energy efficiency were also important. - Speed of response from a property manager was rated as the most important service, followed by having a dedicated property manager and using endorsed contractors. - 54% of Carter Jonas tenants rated their management service as excellent or very good. - Proximity to public transportation was very important to tenants, with over 30% unwilling to live more than a 10 minute walk from transit

3. In Spring we polled our database of tenants to gauge their
thoughts and opinions on a number of subjects ranging from the
most valued services of a managing agent, to how they would like
to see the UK Private Rented Sector (PRS) evolve in the future.
We had a fantastic response from our tenants across our lettings
network who took the time to complete the survey and express
their feelings towards the rental market in general and what they
would like to see, or rather, their expectations for the future.
This information is highly valuable to us as a managing agent and
indeed to those who manage their own properties. The responses
have given us a fantastic insight on various keys issues, whilst also
correcting some of our pre-conceptions such as the perceived
desirability of a concierge/porter service.
As part of the survey we conducted a draw from all participants
to win an iPad mini. The draw was made by our Chairman, John
Henniker-Major who randomly selected Mr Garry Hewitt. Garry lives
in a Carter Jonas managed property in Cambridge and rated our
management service as ‘very good’ within his submission.
We hope you find our report both interesting and insightful.
Tenant Insight will be produced every two years with the next edition
due in Autumn 2016. If you have any queries or require advice please
feel free to contact me or your local lettings manager.
INAUGURAL CARTER JONAS
RESIDENTIAL TENANT SURVEY,
TENANT INSIGHT 2014.
Lisa Simon
Partner, Head of Residential Lettings
020 7528 3200 | 07976 761721
lisa.simon@carterjonas.co.uk
WELCOME TO THE

4. WHO WERE OUR RESPONDENTS?
Our starting point was to clearly identify a number
of key details about our respondents. As expected,
family households, as illustrated in Figure 1, dominate
the profile of our tenant base and in-line with national
trend the growing share of single person households
now account for over 20% of our tenants. It is also
worth noting that the average age of the single person
household has now risen to its highest ever level.
WHAT TENANTS WANT
A key objective of the survey was to definitively
establish the needs and priorities of tenants whilst also
capturing their experiences. The analysis, detailed in the
box adjacent, will not only help to evolve and develop
our management service, but will also advise clients
who manage their own properties.
The speed of response is the most important and valued
trait of a property manager. Our tenants, via this survey,
have expressed its importance especially when lodging
a maintenance issue or requiring administrative clarity.
Interestingly, the desire for a property manager to be
a member of a regulatory body ranked only fourth.
This may either be a sign that tenants feel the industry
is already adequately regulated or that the awareness
of regulatory bodies such as ARLA is not widespread
amongst tenants. Judging by the responses to other
questions within the survey, we believe the latter to be
more probable.
We then asked tenants how they rated the
management service they received. Over 54% of
the participants managed by Carter Jonas rated
their experience as either excellent or very good as
illustrated in Figure 2. This highlights the importance
of professional management and how happy, settled
tenants result in greater overall returns for clients who
opt to use a reputable managing agent.
Figure 1
Household profile
Figure 2
How do you rate your management service – Carter Jonas Tenants
Families 49%
Single person households 20%
Professional sharers 19%
Retired 2%
Students 2%
Prefer not to say/other 8%
Excellent/very good 56%
Other 46%
MOST IMPORTANT SERVICES
FROM MANAGING AGENTS
1 Speed of response
2 A dedicated property manager
3 Endorsed contractors
4 The agent being a member of a
regulatory body
5 An emergency maintenance line
6 Regular property visits from your
landlord or managing agent

5. KEY FACTORS IN THE DECISION
TO RENT A PROPERTY
We asked our tenants a range of questions about
rental properties. Below we focus on the question:
what features would you be prepared to increase
your budget for?
Key findings include over 50% of the respondents
indicated that they would be prepared to increase their
budget for a property with a recently refurbished kitchen
and bathroom, and 45% said they would pay more for
outside space. This, alongside the ranking of striking
design, strongly highlights that a lack of investment in
modern fixtures and fittings is likely to lead to lower
achieved rental levels and consequently an inferior
investment return.
Although bicycle storage is located towards the lower
end of our ranking, the relatively low, one-off cost of
providing adequate storage makes this a proactive
and innovative initiative when developing/remodelling
rental properties. The opposite appears to be true of
a porter/concierge service where expensive running
costs struggle to be justified when we see that there
is little demand from our flat dwelling tenants to pay
more rent for their inclusion. This was one of our pre-
survey assumptions that proved to be incorrect. We felt
trends towards online shopping, long working hours and
an increased awareness of security would lead to this
service being highly valued.
%
50
40
30
20
10
Figure 3
What would you pay more for?
ADVICE FOR LANDLORDS
1 Refurbish properties or look to
purchase those which are newly
redecorated or newly built
2 Consider installing bicycle storage
in certain rental markets if space
allows. The financial return on this
will outweigh the installation cost
3 Select those properties with outside
space and focus on maintaining the
appearance of the property
Newlyrefurbished
kitchenandbathroom
Outsidespace
Energyefficiency
Off-street/
allocatedparking
On-sitegym
Strikingdesign
Bicyclestorage
Porter/
Concierge
“...OVER 50% OF THE
RESPONDENTS INDICATED THAT
THEY WOULD BE PREPARED TO
INCREASE THEIR BUDGET FOR A
PROPERTY WITH A RECENTLY
REFURBISHED KITCHEN”

6. THE WIDER ENVIRONMENT
We asked our tenants a range of questions about their
needs for the wider environment, from access to public
transport to the proximity of good schools. Below we
focus on the importance of public transport to tenants
and have mapped an example area to highlight core and
fringe rental areas.
We chose three theoretical sites in SW6 in London for
possible investment. Where, on the one hand, Site C
would appeal to all prospective tenants as it is just a
3 minute walk from the local station, Site A would suffer
from a distinct lack of tenant demand. Just one in three
prospective tenants would be prepared to make the
13 minute walk from site A to the local station. Although
slightly further from the station, Site B’s location would
only be impacted by a prospective tenant loss of 18%,
ensuring strong demand.
The results starkly highlight that poor geographical
selection when considering rental investments will result
in reduced rental income. Due to the owner-occupier
market not valuing this factor as highly as rental tenants,
public transport isolation is reflected less so in capital
values than rental values, resulting in reduced rental
yields.
TRANSPORT PROXIMITY ANALYSIS IN SW6, LONDON
• Site A - Would only appeal to 34% of the
prospective tenant pool
• Site B - Would appeal to 82% of the
prospective tenant pool
• Site C - Would appeal to 100% of the
prospective tenant pool

7. For the purpose of our analysis, we will be referring
to those born from 1979 onwards (35 and under).
This age range represents the largest group within
the rapidly growing UK Private Rented Sector (PRS).
Here, we look into a little more detail about how
they differ from other age groups and what their
housing expectations are.
Who is the average Carter Jonas Gen Y tenant?
Rather surprisingly the majority of our Gen Y tenants
are now young families. They consider both modern
kitchens and access to high speed internet absolutely
essential and rate energy efficiency above the need for
outside space, adding that they would like to see more
energy efficient homes in the future. They believe off-
road allocated parking should be standard and en-suite
bathrooms would be a welcome addition.
They relocated to their current home from elsewhere
in the UK, and will not consider properties any further
than 10 minutes from public transport, spending no
longer than 30 minutes on their daily work commute.
The combined Gen Y family income is between
£25-£50,000, of which they spend £500-£1,000 per
month on rent. They are looking to move in the next
two years although are unsure whether this will be into
owner-occupied or rental accommodation.
PROFILE OF AN AVERAGE
GENERATION Y TENANT
Household income: £25-£50,000
Household make-up: Young family
Plans: They will be looking to move
in the coming two years
Reason for last move: They relocated
from another region in the UK
Rent: They currently pay between
£500-£1,000 per month but would
be prepared to increase their budget
if there was the option of an on-site
gym and outside space
Additional: In the future they would
like to see tablet/smart phone
controlled heating and appliances
FOCUS ON
GENERATION Y
THE AGREED YEARS OF BIRTH FOR THOSE
CONSIDERED PART OF GENERATION Y OR
MILLENNIALS ARE THOSE BORN IN THE
MID-LATE 70’S RIGHT UP TO THOSE BORN AT
THE START OF THE CURRENT MILLENNIUM.

8. An indication of a possible PRS development

9. PROPERTY
A common theme to arise from our responses was
a less than positive comparison between the UK
and European/US private rented sectors. Tenants
with experience of leasing residential property in
these markets highlighted that there was a severe
lack of suitable property, most notably the size and
configuration of urban family units. When we consider
that the UK PRS has grown into its current state mainly
through the entry of relatively small scale buy-to-let
investors and accidental landlords, this supply imbalance
comes as little surprise.
One possible solution to this problem could be the
estimated £9bn of institutional money that has been
earmarked for investment in the UK PRS. With a
shortage of large, tradable portfolios this investment
should take the form of purpose-built private rented
developments with accurate and methodical research
applied to ensure that the product supplied accurately
meets tenant requirements. Although this increased
institutional activity will still only represent a very small
percentage of the overall market, it may act as a catalyst
for the wider market to place greater focus on the
requirements of the end-user (the tenant).
We asked what features tenants would like to see
implemented in the rental home of the future. Below we
list the most popular features in order of popularity:
THE NEXT TEN YEARS ARE FORECAST TO
WITNESS WIDE SCALE CHANGES IN THE UK
PRIVATE RENTED SECTOR (PRS). BELOW WE
LOOK AT HOW THE MARKET MAY LOOK IN 2024.
THE FUTURE OF
UK PRIVATE RENTED
ACCOMMODATION
LEGISLATION
We also asked how our tenants felt legislation in the UK
PRS could be improved and were delighted to receive
some thought provoking responses, a selection of which
are shown below:
Increased and improved legislation is a hot topic at the
moment with all major political parties commenting on
how the current system can be improved within their
policies. Below we look into areas where we foresee
an improvement in legislation.
Property condition - Similar to the rules regarding
Energy Performance Certificates (EPCs) whereby
certificates need to be renewed every ten years, the
introduction of individual property licenses (a property
MOT if you like) may be issued every five years to
certify that a property is in a fit condition to be let.
Unlike an EPC there would be a fail/pass notice issued.
Superseding EPCs, integrating minimum energy
requirements and running alongside annual gas safety
checks, the licenses would also address areas such as
security, heating provision and damp. This method of
rating a property will ensure that landlords who ensure
that they offer a high quality product will achieve a rental
premium.
Simplify and regulate tenancy agreements - A range of
compulsory, malleable, plain English contracts designed
to suit all tenancy lengths should be introduced. A
common complaint from tenants is that the current
system does not offer longer term tenancies. This belief
1 Green energy generating
(wind turbines, solar etc.)
2 Tablet/smart phone controlled heating and
lighting systems
3 Palm/fingerprint controlled
entry systems
4 On-site business facilities
(hot-desk workspace etc.)
• Compulsory landlord and agency registration
• Changes to the legal framework. Rental quality
in the UK is severely sub-par in comparison to
other countries
• 3 year contracts

10. is more to do with a lack of awareness rather than
provision. Effectively, the use of three year contracts
is already widespread within the world of corporate
relocations through the insertion of options to renew
for subsequent years and tenant only break clauses.
Although these long-term contracts obviously do
not suit all landlords, the more long-term, large scale
landlords will welcome the increased possibility of steady
income streams, shorter voids and reduced agency fees.
Properties may then be marketed with a list of contracts
the landlord is prepared to consider, thus helping to
match tenants and landlords whose long-term plans are
more closely aligned.
Figure 4
Wage/Rent/RPI Index from 2005
Figure 5
Total workforce job growth forecast
2014-2024
RENTS
Improving economic conditions coupled with the well
publicised housing shortage should contribute to strong
rental growth in the coming years. Another key driver
of rental growth in the UK PRS is employment, or rather
levels of employment within the specific sectors feeding
a local market. The best example of this would be the
relationship between both recruitment and remuneration
in the financial services sector and the performance of
the Prime Central London (PCL) rental market. Using
Figure 4 as an example, we can see how financial service
wage levels match the performance of PCL rents.
When we apply the above logic to Experian workforce
growth forecasts, a large number of core lettings
locations are well placed to experience above national
average rental growth in the near future. On further
investigation, a large percentage of the workforce
growth is forecast to come from the growth of
knowledge intensive companies such as those in
the Cambridge biotech and technology clusters.
This expanding, well paid, transient workforce will
undoubtedly lead to strong local demand.
“IMPROVING ECONOMIC
CONDITIONS COUPLED WITH
THE WELL PUBLICISED HOUSING
SHORTAGE SHOULD CONTRIBUTE
TO STRONG RENTAL GROWTH IN
THE COMING YEARS.”
90
2005
2006
2007
2008
2009
2010
2011
2012
2013
100
110
120
130
140
150
2% 4% 6% 8% 10% 12%
SIC07 Definition
64 - Financial service activities, except insurance and pension funding
65 - Insurance, reinsurance and pension funding, except compulsory social security
66 - Activities auxiliary to financial services and insurance activities
PCL rents
Manager/professional wage
RPI
Cambridgeshire
Westminster
Kensington Chelsea
Winchester
Bath North East Somerset
Newbury (West Berkshire)
Hammersmith Fulham
Oxford
UK
Wandsworth
Marlborough (Kennet)

12. Christopher Way,
Partner, Head of Oxford Lettings
01865 404425 | 07775 562099
christopher.way@carterjonas.co.uk
Lee Layton,
Research Analyst
01604 608212 | 07768 308737
lee.layton@carterjonas.co.uk
© Carter Jonas 2014. The information given in this
publication is believed to be correct at the time of going
to press. We do not however accept any liability for any
decisions taken following this newsletter. We recommend
that professional advice is taken. Carter Jonas LLP uses the
information it holds about you for marketing purposes and
to administer, support, improve and develop our business.
We may send them by post, telephone or fax, email or SMS.
If you would rather NOT receive further information by any
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please contact marketing@carterjonas.co.uk. We will not
disclose personal information to any third parties without
your permission to do so, unless we believe that we should
do so to comply with the law.
To find out how Carter Jonas can help
you with the sale or letting of your
property, or to book a complimentary
market appraisal, please get in touch.
020 7518 3200
One Chapel Place, London W1G 0BG
carterjonas.co.uk
DAY IN DAY OUT, OUR EXPERTS
USE THEIR MARKET KNOWLEDGE,
EXPERTISE AND COMPLETE LOVE
OF PROPERTY TO DRIVE THEM TO
GIVE THEIR CLIENTS THE VERY
BEST POSSIBLE ADVICE.
From selling your house or letting it, conducting valuations
or simply giving you professional advice based around your
circumstances, we can help you.
Lisa Simon,
Partner, Head of Lettings
020 7518 3200 | 07976 761721
lisa.simon@carterjonas.co.uk
Gregory Besterman,
Partner, Head of Residential
020 7518 3200 | 07774 911981
gregory.besterman@carterjonas.co.uk
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