Ways To Increase Your Rental Returns

Increasing the rental income of your investment property is a key priority for smart property investors and it isn’t as difficult or as expensive as you may believe.

Now we all know there is a direct link between the appearance of a property and the rental income it may produce and a distinctive link between the presentation of a property and the tenants it may attract.

With the right advice and improvements, landlords can significantly increase the amount they can charge on their property – and of course, there is the fine line between improvements that can increase your rental return and the ones that can leave you over-capitalised so it may be worth speaking to your property manager before you make any extravagant purchases or extensive renovations.

We have created a list of some simple but effective improvements that can make a big difference to your rental return:

1. Street appeal

First impression counts so If your investment property is a house with a front garden, spend some time tidying up the garden beds, removing any weeds, cleaning the paths, painting the fence and cleaning the windows.

If you own an apartment, perhaps add window boxes, clean the front door or give it a fresh coat of paint and add a new front door mat to make the place more welcoming. A good first impression sets renters up for liking the property and wanting to pay more for a place that’s been well looked after.

2. Freshen up the bathroom/s

Potential tenants are prepared to pay more for a clean property with a clean and tidy bathroom however, we are not suggesting re-doing the whole bathroom and spending a fortune.

If your tiles are outdated, stained, or tired, you do not need to re-tile, simply paint over them with tile paint and give the bathroom a fresh new look for a fraction of the price.

Replace any old shower curtains, shower heads, and fixtures, scrub away any mould and if need be, put in a new vanity. These are relatively cheap fixes, yet they make a huge difference to the presentation of the bathroom, creating a more clean and modern space for renters to fall in love with.

3. Update the kitchen

The kitchen is the heart of the home and like bathrooms, renters are happy to pay more for a home with a good kitchen. A fresh coat of paint can make all the difference towards creating a better kitchen.

Swapping cabinet doors can give your kitchen a whole new look. If entirely new doors are outside your budget, you can make a huge difference by simply replacing the handles of your cupboards and drawers.

 

4. Add off-street parking

A car space can make a huge difference especially if your rental property is in a high-density living area.
Adding a carport or even creating a driveway is something that tenants will pay more for, because they would much rather live in a property where parking isn’t a daily struggle compared to the alternative.

5. Add storage

Tenants love storage, and easy and cheap additions like wardrobes in bedrooms will increase the appeal and rental value. Tenants want to be able to picture themselves living in a space, and if they can’t see enough room for their belongings, it can be a turn-off.

6. Outdoor entertaining area

It will make your place more enticing to renters and add value to your property when you go to sell. You do not need to spend a fortune either. Adding a deck, tiling a courtyard, adding a gazebo and BBQ plus some outdoor furniture, is a big drawcard for renters.

7. Let there be light

With simple fixes like cleaning light fittings and replacing bulbs with brighter lights – this can create a more open, bright and inviting space.

If renters walk into your property and can see that it’s flooded with light and gives the impression of space, they’ll pay more for your property as opposed to one that is dark and therefore feels smaller. Smart and clean lights create the illusion of space.

8. Raise the rent and continuously monitor the market

Doing some market research can also be another way to achieve higher rental returns. During your research, you may find that you are charging rent that is below the market standard, and therefore it is in your best interest to raise it.

It’s important to keep up with the rental market in order to maintain or increase rental yield. Factors such as a new school or medical centre being built near your property could dramatically increase rent prices. One of the best ways to keep your rent sustainable is to know how it compares to the rest of the market and to ensure that it is competitive with comparable properties. You can do a gross yield calculation and compare it to the rental yields in your suburb. Multiply the average rental yield of comparable properties by the estimated value of your property and you will get an approximate figure of the annual rent you should be getting.

9. Keep up to date with regulations

Part of being a good and responsible landlord includes keeping up to date with current rental laws and regulations in your state. These laws change regularly, and failing to comply with these changes can be costly. Maintaining good practice and tending to the upkeep of your rental property results in long-term tenancies and greater interest from potential renters.

10. Hire a property manager

This is probably the most important step to creating an increase in your rental returns. The property managers at Harbour Quays can prove to be a huge asset in ensuring your property has increased rental returns. They can be a valuable source of tips and ideas of how to best manage your investment property along with how to attract the right, value-added tenants.

From advising what changes need to be made (if any) to advising the best, most cost-effective way to make these changes, property managers are vital in maximising your returns.

Contact our property management team today to find out what we can do for you.

 

Disclaimer: This blog post is not to be considered legal advice. If you are seeking specific legal advice, we suggest that you consult a legal professional before making any significant decisions in this regard.