Nine Ways to Increase the Rental Yield of Your Property



Whatever your reasoning may be behind possessing a rental property, maximising return on investment is probably high on your agenda. The monthly rental value of a property is calculated based on a number of factors – some of which are well within your control. In this blog we explain how you can optimise your income from your rental property by implementing some simple and sometimes inexpensive changes.

 

Deep clean

Cleanliness is understandably important to potential tenants – so it’s well worth having your property professionally cleaned before viewings if it’s currently empty. If viewings are being done with a tenant still in the property, have your property manager explain that you will be having the home professionally deep cleaned before any new prospective tenants move in.  

 

Invest in heating and cooling

Many rental properties in Victoria come with heating and it is a mandatory requirement, however, still there are homes without air conditioning. It’s tempting to overlook cooling and save a little money – but installing heating/cooling systems can significantly boost your return per month and cooling is becoming a standard that tenants are looking for.

 

Consider a pet-friendly policy

In Australia we love our pets – over 60% of us have them. A significant portion of the population also rent - but very few rental properties allow pets and most operate a strictly ‘no pets’ policy. This is understandably off-putting for long-term tenants considering pet ownership in the future, and it closes off your potential market to a significant portion of potential tenants. In some cases, it’s understandable that a ‘no pets’ rule may be necessary - but considering an open policy on pets (with appropriate vetting and contractual clauses in place) will give your property the edge and open up rental opportunities considerably. Tenants may even be willing to pay a little more so that they can bring their furry friend along with them. New tenancy laws proposed to come into force this year also uphold the right of tenants to pet ownership, stipulating that landlords cannot refuse without good reason. It’s well worth preparing for this to avoid hassle and the possible consequences of non-compliance further down the line.

 

Renovate and refurbish

The state of your property and your rental income have a symbiotic relationship. The more money you spend on keeping your property in tip-top condition, the more you can expect to earn from it. Focus on areas where tenants are likely to spend the majority of their time – living rooms, kitchens etc. Repair rather than replace where possible to keep costs down. Small things make a big difference – like door handles, light fittings and a fresh coat of paint.

 

Save and share reviews and references

In the lettings market references tend to work one way only – as a landlord you consider and approve based on the references tenants are able to provide. But you can potentially increase your rental income by bringing references of your own to the table, to reassure tenants that they will be treated well and looked after should anything go wrong. Property owners are not always helpful – tenants may have had bad experiences in the past with inflexible landlords and landlords unwilling to undertake maintenance, making them nervous about renting again. A reference, and a friendly note to say that good references are available on viewing days and application forms will be incredibly attractive. This is also rare – so it will give you a noticeable advantage over the competition.

 

Include storage space

Many rental properties have a huge lack of storage space – so making some room for tenants to store their belongings could push up the income you can expect to receive from your property. Think about shelving, cupboards and even built-in wardrobes as these could be invaluable for your tenants and will quickly deliver a return.

 

Go green

Installing a solar energy supply or another ‘green’ alternative is certainly costly – but you and your tenants will reap the rewards for years to come. For tenants this is attractive as it decreases energy bills and may align with their personal ethics and eco-friendly lifestyle. From your perspective a saving on electricity means extra rental income which will add up month by month.

 

Take better photos

Most rental properties are viewed online first before potential tenants see them in person – so quality photography is crucially important. If you don’t get it right at this stage you may lose out significantly, since fewer people come to view your property and rental potential decreases. Only professional photos should be used for online listings and marketing materials. A professional photographer will know which angles and focus points to highlight the positive features of your property.

 

As within, so without

If your property comes with outdoor space, don’t forget to spruce it up a little and make it usable and enjoyable for your tenants. Pop out a cheap table and chairs or a couple of plant pots to brighten up a patio or decking area. You may also want to invest in lighting so that they can use the space for longer as the nights draw in.

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