Leasing out a property and then waiting to watch the money roll in is not exactly a winning investment strategy. Landlords need to work to ensure their property gets them the returns they want.
Here are a few ways to increase your rental returns.
Make sure your property is presented as best it can be. That might mean ensuring the garden is well cared for, that any tired and easily replaceable features like blinds and light fittings are updated, or giving the place a quick lick of paint.
Remember that potential tenants have to make their choices on the basis of a very brief showing, and in this space of time much of that judgment is about the general feel of a property. Small touches can go a long way towards improving first impressions, allowing you to justify charging higher rents.
Consider your property in terms not just of it’s current features and fittings, but of its potential for renovation.
Could the kitchen or bathroom be modernised?
Is there scope to improve the indoor-outdoor flow or to add a new outdoor space?
What new features can you add that will really help sell the property as an attractive place to live?
Renovating is one of the more expensive options in the immediate term, but can boost your returns in the long run.
Check market rental prices
Tenant changeover periods are an opportunity to reassess whether the rent you are changing is still in line with market rates.
Especially if you have had same tenants in the property for an extended period or if your property is in a growth suburb, there’s a good chance you could be charging quite a bit more.
Choose the right property manager
Having the right property manager looking after your investment is crucial for ensuring you have strong and consistent returns. A good property manager should be able to advise you on market rates and on where small improvements and renovations can help you improve the overall appeal of your property.
A good property manager will also be responsive to tenant needs. One of the major contributors to tenant turnover is manager neglect, so ensuring that you have a property manager who will see to maintenance and repairs quickly wherever necessary is a crucial means of minimising potentially expensive vacancy periods.
When such vacancies do arise, make sure your property manager is conducting an appropriate number of open houses, and that the property is well advertised to attract a wide range of potential renters. Open house advertisements should show the property off to its fullest potential.
Contact K.G. Hurst for professional Sydney based property management services and investment advice.