As a property investor, you want to maximise your returns. A higher rental income obviously means more money, but it can also increase your borrowing power to help you build your portfolio more quickly.
Your rental income is directly related to the condition of your property. High occupancy and good cashflow are only possible if the property is well maintained. The key is to provide more value to your tenants without spending too much that would eat into your profits.
Here are the top 12 tips you can apply to increase your rental yields.
1. Prioritise Maintenance
Present your property in the best way possible. A fresh-smelling, well-maintained property where everything works properly is likely to win over prospective tenants. Here are a few upgrades that might greatly affect your rental income.
- Apply fresh paint on the interior and exterior to enhance the overall look of your rental home and give it a new, clean look. It is best to stick to neutral colours for the walls, like creamy white and beige, as they appeal to most people and make your home look spacious.
- Get the help of a professional to clean your home, especially the kitchen and bathroom. Replace the taps, showerheads and other fittings, and shower curtains to make your bathroom appear as good as new.
- Fix any leaking taps, broken door handles, air conditioners or fans, etc. Replace outdated light fittings and get some modern, budget-friendly ones to give your room a contemporary look.
- Instead of replacing the carpet, call a professional to clean it.
2. Invest In Appliances
Consider installing an air conditioner. Many tenants can’t think of living without a proper heating and cooling system, even if the property is otherwise good. Tenants also look for appliances like refrigerators, washing machines, dryers, and dishwashers while renting a home.
You might think you are cutting costs by not providing these appliances. But these amenities add value to your rental property and are a big plus for the tenants. A well-installed and reliable heating system, installed by professionals, and good quality appliances will last longer.
3. Add An Extra Bedroom
Converting an unused space at your home into an extra bedroom is an excellent way to earn more and increase the value of your property. It will cost you more initially, but it will reap a good return in the long run. Adding an extra bedroom might also make your property appeal to a wider group of tenants.
4. Add Additional Storage Space
Not many rental properties have enough storage. A built-in wardrobe is a big plus for renters, and additional kitchen storage space will also be appreciated. You can add storage units in your garage, too. It will be a great selling point if you can offer ample storage space, especially in apartments, where it becomes a premium feature.
5. Offer Pet-Friendly Rentals
Australia has one of the highest pet ownership rates in the world. Approximately 61% of households own pets, and dogs and cats are popular choices.
Tenants with pets will usually pay more to secure a property that allows them. They also have longer tenancies to avoid the hassle of searching for another pet-friendly rental property. Be mindful of the size of the pet; your property might be ideal for small pets but not for bigger ones.
You can charge more for cleaning and maintenance when allowing tenants with pets. With the extra charge, get a professional steam cleaning done regularly. If you are worried about property damage, then include what happens to the damage caused by a pet in your rental lease. Moreover, you can also invest in landlord insurance that covers pet damage.
6. Focus On Improving Security
Security is a high priority for most tenants. They will be willing to pay more for a property that makes them feel safe. Installing screen doors and windows and motion lights, will make your property more attractive. Investing in a security system with alarms will be best for you and your tenants’ peace of mind.
Also, invest in a higher level of home access control than your insurance covers to be safer in case of break-ins.
7. Add A Parking Space
Parking is an essential for many renters. Tenants will look for properties with parking spots, as off-street parking is limited in the inner city. A simple shade sail will do if your home has space but building a full carport or garage is beyond your budget.
Invest in a parking spot on the property if you have space. It’s inconvenient if tenants have to walk to get to or from the parking spot.
8. Keep Your Front Yard Neat And Tidy
Your front yard is the first impression of your home to your possible tenant. Get plants that require low maintenance, like succulents and native plants, and plant some flowers. Add a bench or even a mailbox to give character to your property. It is a good strategy to make your home stand out and make a good impression. However, be mindful of adding only those items that enhance the aesthetics but require low maintenance; otherwise, it might turn away some tenants.
9. Tidy Up Your Backyard
The backyard is as important as your front yard, if not more. Since working from home has become popular, a lovely outdoor area will appeal to the tenants. It is perfect for people who love to entertain guests outdoors. A proper outdoor seating arrangement will do, but a spot for barbeque would be a bonus.
10. Install Solar Panels
Although solar panels are expensive, they are a good investment. Going green gives you good returns in the long run. You are likely to get the money back in around five years from the day of installing the panels, but they last for two to three decades and will continue to reduce the electricity bill, allowing you to charge more for rent.
11. Reduce Noise From The Street
Noise pollution in the area might put off potential tenants. Here are a few ways to minimise noise from the street on a budget. Seal the doors and window frames with weather-stripping tape and install a door seal to cut noise from the street. Hanging a thick curtain over windows also helps keep the noise outside and adds character to a house.
12. Get Professional Help
Getting the help of a property manager or real-estate agent is beneficial. They can suggest appropriate upgrades and renovation ideas to suit your property and the targeted market. This will help you improve your monthly cashflow and increase your investment property’s value.
We Are Here To Help
Rental yield and capital growth strategies are important, and it’s good to know which is better to achieve your financial goal. Navigating the property market is much easier when you have experienced mortgage brokers by your side. They will assist you in meeting your investment goals.
Feel free to contact us at 1300 889 743 or fill out our free online enquiry form today!