Tips to maximise your rent. When buying an investment property, most would agree, rent is as important as generating capital growth. Having the opportunity to receive a weekly income stream can be a real winner in so many ways .
In this market insight, we share some tips to maximise your rent.
Aim to establish long term leases
By establishing a long term lease, you’ll effectively reduce your property management fees. This in turn maximises your rent by reducing the need to pay regular letting fees. A letting fee can cost you a week or two weeks rent. It also reduces the risk of a vacancy, where you’ll experience no rental income at all until a renter is found.
Maintaining the property
A well maintained investment property is more inclined to receive a higher level of rent. Having a high level of fixture and fittings or an air-conditioner are effective ways to do so. Freshly painted walls and landscaping are always highly appealing to renters. If the property presents well, the renter will be more inclined to pay rent above the average rate in the area.
Minimise vacancies
As highlighted earlier, vacancy rates are not what anyone wants. To avoid this, you may consider some strategies to avoid it.
- You could establish a long term lease
- Offer a week free rent to re-let the property
- Charge rent $5-$10 less that the market
- Use professional photos when advertising
- Employ a great property manage to help
As a rental provider, be pet friendly
It has been known in the past, that many rental providers avoided accepting renters with household pets. Some of the best renters have a pet. They are caring, happier and responsible people. If you are looking for a quality tenant, consider the thought to what that person may be like. In many cases, a renter will pay more rent to occupy your investment property. This can be an effective way to maximise rent and potentially establishing a longer term lease.
Keeping a happy renter
Keeping a happy renter will maximise your rent. They will be more inclined to pay rent on time, look after your property and stay longer. If you source a bad renter, you’ll be constantly asking for rent and complaining about the poor upkeep of your investment property. There are many ways to keeping a happier tenant and we have discussed this area in detail in an earlier market insight.
Having a great property manager
A property manager will understand the property market better than you. They can offer you a rental appraisal each year ensuring you are generating the best income. They will also provide a service to identify how/when you can increase your rent.
Their insight to the property market can be an invaluable service. A property manager will also conduct regular inspections. These inspections will discover any issues at the property to ensure you have the opportunity to maintain its standard and reduce your costs later down the track. They will also be an excellent intermediate between the rental provider and renter. Having less emotional attachment will allow you to confidentially increase the rent as you aren’t the person directly advising the renter.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
July 2021
