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.
In this blog, our agents offer helpful tips to help you maximise your investment property’s rental yield and secure its long-term success.
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. Research the ‘filter’ options on property portals like domain.com.au for insights about desirable property features.
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. It is also worthwhile to consider periodic renovations — dated interiors reduce tenant interest, which has a profound impact on rent. If the property looks good and functions well, you will be able to command a higher rent.
Be flexible with lease terms
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 (such as 6 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.
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. Our experienced team of property managers, leasing consultants and investment consultants ensure total peace of mind by managing all aspects of renting out your property — including advertising, applications, inspections, documentation and repairs as well as dealing with and advising on any tenancy issues.
Our team are motivated and highly trained and have the backing of a full-service agency with a cohesive and supportive network. We know that the most rewarding client relationships are the longest, so we are guided by morals and professional ethics of trust, honesty, openness, and respect.
Find out more about our property management services.