Whether you’re looking to buy your first investment property, renting out your family home, or growing your portfolio, it’s important to continuously look at ways to optimise the income from your investment.
UNDERSTAND WHAT RENTERS WANT
Keep an eye on real estate trends to ensure you are meeting the expectations of the rental market. Air conditioning, ventilation, lighting, paint colours, flooring – while these factors might seem like minor points of difference, they could make a world of difference in attracting tenants and optimising rental income.
STAY ON TOP OF UPKEEP
It’s important to stay on top of any required repairs and general maintenance for an investment property, as these can ultimately affect its value and rental yield. Therefore, it is important to develop and maintain relationships with tradespeople who you can trust to fix problems as they happen.
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 peace 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.
Holiday leases – Holiday letting agreements can be as short as a day and therefore command high prices. Like with short-term leases, landlords need to weigh up the pros and cons of holiday lettings — taking into account the additional marketing costs, wear and tear, cleaning, and management, as well as potential vacancies during off-peak seasons.
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’s not as simple as stating you have a pet-friendly property; it’s essential to make your investment pet-friendly – think fences, pet doors, hardwearing floor coverings 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 without causing vacancy.
REVIEW INTEREST RATES
Investment property interest rates fluctuate. So, 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. For more information contact your local Belle property Agent, Carolyn Wheatley today on 0407 120 483 or [email protected]