Whether you are looking to buy your first investment property, renting out your family home or add another property to your portfolio, it is important to continuously look at ways to optimise your investment property’s income.
UNDERSTAND WHAT RENTERS WANT
Keep an eye on real estate trends to ensure you are meeting the expectations of the current rental market. Air Conditioning, ventilation, lighting, flooring, paint colours etc. While these things may seem like minor points of difference, they could make a world of difference in attracting the right tenants and optimising rental income. Research the filter options on property platforms such as domain.com.au or realestate.com.au for insights about desirable property features.
STAY ON TOP OF UPKEEP
It is important to stay on top of any required repairs and general maintenance for your investment property. These things can ultimately affect its value and rental income. Therefore, it is important to develop and maintain relationships with tradespeople who you can trust to fix problems as they happen. It is also worthwhile to consider periodic renovations. Dates interiors reduce tenant interest which has a profound impact on rent. If the property looks good and functions well you will be able to command higher rent
BE FLEXIBLE WITH LEASE TERMS
Longer Term Leases
Tenants looking for greater housing security may prefer to live in their rental for much longer than a typical 12 month lease. Longer term leases offer both parties peach of mind, stability and security allowing for long term financial planning.
Short Term Leases
Short term leases usually last less than three months and can be attractive to tenants wanting flexibility. However it is essential for landlords to factor in the costs of higher tenancy turnover such as greater wear and tear on the property, increased letting fees, more frequent marketing campaigns and potential vacancies.
MAKE YOUR PROPERTY PET FRIENDLY
Being pet friendly could boost your income potential by widening your tenant base and achieving a higher rental price in areas short on similar accommodation. However, it is not as simple as stating you have a pet friendly property. It is essential to make your investment pet friendly. Think fences, pet doors, hardwearing floor covering etc.
KEEP AN EYE ON THE MARKET
Increase rent, when necessary, strategically. Raising rent periodically without causing vacancy is an art form. It involves understanding what is available nearby and the cost and effort of moving for the tenant. If you keep an eye on the market, you can ensure you command the maximum price for your property with out causing vacancy.
REVIEW INTEREST RATES
Investment property interest rates fluctuate. Keep an eye on your loan and benchmark it against the market from time to time to see if there’s a better deal available. Small increases can add up to a lot over time and make a big difference to the success of your investment.
GET PROFESSIONAL SUPPORT
These are useful tips to help maximise return on your investment, however the smartest strategy to ensure success is to enlist the services of a professional property manager. A property manager ensures total peace of mind by managing all aspects of renting out your property, including advertising, applications process (finding suitable tenants), inspections, documentation and repairs as well as dealing with and advising on any tenancy issues.
If you would like more information on our services or maximising your investment property’s income. Contact us today!!
