Having an investment property is great! It brings in cash flow and can yield great returns, but are you getting the most out of your investment property? Here are a few ways to increase your rental returns.
When you’re looking for your next investment property, put your ‘prospective tenant goggles’ on. What would a tenant be looking to rent?
One of the biggest factors to consider is the property’s proximity to local amenities such as shopping centres, cafes, public transport, parks and other recreational areas. It also helps to be away from main roads as the traffic and noise can deter tenants.
Other little things which you may not consider are north facing living areas or bedrooms or the neighbourhood’s aesthetics.
Regardless of which suburb the property is in, these factors will all make a difference.
Property upgrades and renovations
If you decide to renovate a property to push your rental price up, there are actually a few really simple and inexpensive solutions that can add a lot of value to your property. These are simple things like a fresh coat of paint, buying new light fixtures, replacing door handles, getting new curtains and new carpet, adding air conditioning and redoing the garden.
You can check out our article on renovating your property for profit for some more tips and tricks! The most important thing to remember is that you don’t have to go crazy! The smallest things can make the most difference. Remember: less is more.
Be on the lookout for defects and problems
This one is relevant to buying property in general, whether it be your investment property, first home, third home, etc. Before you purchase, you should be inspecting the property and look for any defects of things that may cause issues further down the line. This includes things like cracks, uneven surfaces, faulty power points, leaky taps and insect or pest infestations.
If you decide you want to purchase a property, ensure you fix any of these problems before you have tenants move in. It will make your life easier in the end, we promise!
Don’t just focus on the interior
It can be easy for owners and agents to focus on the property’s interior because that’s where people will spend most of their time and where defects are most likely to pop up.
However, it’s important not to forget about outdoor areas. After all, it’s the first part of the property your prospective tenants will see and first impressions are important.
Finding a house with a nice garden or outdoor living area (or investing in them) can be a major selling point. This is particularly important if you’re trying to attract families, who will want outdoor space for their children.
In the end, the rental price you set is dependent on the demand you have on your property. If you have a property that attracts a larger pool of tenants, you can expect to get more rental return. If you have any questions or would like to talk to an expert property manager, contact us here or email [email protected].