5 tips to secure higher rental returns
It’s important to maximise rental returns from your investment portfolio, in order to optimise your property investment journey.
By securing even small increases in your rents you’ll be in a stronger financial position and it may help you to buy your next investment property sooner.
Here are 5 tips that could help you maximise rental returns:
- Install additional appliances. ‘Value-add’ appliances can help to maximise rental returns. A large family may pay more rent for a dishwasher, tenants in a hot climate may pay more for air conditioning or older tenants may pay more for security cameras. Remote garages, house alarms or other appliances may also allow you to secure higher rents.
- Is development an option? If you have the budget for it, undertaking a redevelopment could justify higher rents. Check the zoning of your property as you may be able to demolish your existing dwelling and build several properties in its place.
- Allow pets. Permitting tenants to keep pets can be a fast way to secure higher rentals returns without spending any money. Include clauses in the rental agreement that places the responsibility on the tenant to rectify any damage that a larger pet, such as a dog, may cause.
- Complete cosmetic upgrades or larger renovations. Low-cost cosmetic upgrades can be an effective means to securing increased rents, whether it be a fresh coat of paint, new blinds, or replacing fixtures and fittings. Alternatively, larger renovations can also help, including adding a new kitchen or a makeover of the bathrooms or outdoor area.
- Offer a long-term lease. Depending on the market, tenants may be happy to pay extra if you offer them a long-term lease. This may be the case for families in particular who don’t want to move house every year, and want the peace of mind that they won’t be asked to leave if the landlord wants to sell.
A good property manager will be able to provide you with advice and recommendations when maximising your rental returns.
While the above tips can help to secure higher rents, it will also depend on the market conditions at the time so it’s always best to consult with your property manager.