Like any investment, when you purchase an investment property you desire it to be making as much as it can for you. You but you probably also don’t want to be one of those dodgy landlords that turn up on A Current Affair.
Don’t worry though as we’ve come up with some methods to increase your rental returns.
Use an Excellent Property Manager
To ensure your property is managed effectively, you need to ensure you discover a great property manager who understands the intricacies of the job and aligns with your goals.
Excellent property managers can be tough to discover but they need to be certified, come recommended from other investors, have been in the market for a variety of years, have regional knowledge of the location and the types of renters your property is likely to attract and be in touch with you regularly.
Obtain Longer Leases
It makes sense that the more often you are looking for a new tenant the more fees you are going to incur, so going for a 12-month lease over a 6-month lease as much as possible is going to not only lock in great tenants but also minimise disturbance to your cash flow.
Losing out on rental income is the last thing you want from your investment.
Renting out a property comes with a number of must do tasks.
- Advertising the property, ads, photos, getting good exposure etc
- Running open houses
- Processing applications
- Doing background checks
Streamlining this process is an absolute must or you will soon find the time you are outlying isn’t covering and savings you may be making through self-management.
Increase The Rent
This seems like an obvious choice however it is incredible the number of landlords who haven’t increased their rent for several years.
Discovering what the market rent is and the next time you are able to increase your rent is a crucial element if you expect to get the most out of your investment.
Have an Excellent Tenant
Rental properties can be like rental cars in the fact they get driven hard. An excellent renter is worth their weight in gold, so it’s important to keep them, value them and consider rewarding them.
This is where the best property managers come in handy as they are excellent at nurturing quality tenants.
Claim All Tax Deductions
Working with your team to ensure you are getting the maximum deductions from your investment property is another must.
Obtaining a depreciation schedule from a property surveyor will allow your accountant to factor in all the potential deductions that exist in your property.
A new coat of paint, brand-new flooring and resurfacing of the bathroom or kitchen could easily increase rent by 10%. This alone ought to increase the lease by an additional 10% if you choose to put in a new cooking area.
Upgrading properties not only increases your rental yield but it also helps to bring in a much better quality tenant.
Of course, you need to crunch the numbers to make sure any renovations are worthwhile, but it is certainly a powerful tool when used thoughtfully.
Lots of people own family pets, something around two-thirds of all potential renters. There are very limited options in finding rental properties that are suitable/allow family pets.
If you can make your property animal friendly, you will frequently find that renters will pay you a premium for this and provides a wider selection pool.
Charge For Utilities
In some states, you have the ability to charge for utilities. If you expect the tenant to preserve a garden, you should pertain to some sort of plan where you share the cost for use of water.
Whether you are managing the property yourself or have a property manager, you want to be sure rent is paid on time. You will find that the further behind a renter falls in their rent, the less likely you are to see all the rent owing to you.
That should give you plenty to think about and of course feel free to get in touch if you have any ideas or questions regarding your property.