By Davina Deluao. This article was originally published on iBuildNew.com.au and has been republished here with permission.
Whether you have just bought your first investment property or are ready to move on to the next opportunity, you want to make sure that you are maximising your rental return. It pays off to be proactive in achieving an accurate return as it can result in you being financially stable to keep up with other ongoing payments. This article will offer some tips and advice on getting more rental value for your money!
Check And Review
To gain a clear idea, you can check out how much your rental fees are in comparison to similar houses that are within the area. If what you’re charging is lower than the market average, you may decide to notify the tenant of a rent increase. You may also want to go through your current home loan and compare it against other lenders in the market to ensure you’re not spending more money out of your pocket. Before you consider refinancing, it is important to have a set goal in mind whether you’re wanting to pay it all off as soon as possible or adhere to a stable repayment plan. Through knowing what you want to achieve and your capacity, you can avoid falling into the trap of taking out too many loans.
For a good rental return, you want to showcase your place in the best light to catch the eye of tenants. It can make a huge difference by simply repainting, adding air conditioning, building in a dishwasher, creating storage space, maintaining the garden, setting up light fixtures as well as adding in modern appliances. These are all particularly helpful when rent is deteriorating due to the supply becoming greater than the demand. By adding a boost to your property with stand-out features, you can avoid deprecation expenses and also bring in more cash flow.
All About Property Management
A strong rental return can rely on efficient property management and also checking up on the performance of the property. Regardless of whether you self-manage or have a property manager, you should take the time to evaluate the management process and if the target results have been reached. If you opt for a manager, do your best to fairly review their performance and keep in contact with them on a regular basis.
Bring In Good Tenants
As they will be spending the most time with the property, it is essential to assess the character of the tenants and if they are going to keep the home well kept. It is also a priority to reach a shared agreement with the lease so everybody’s informed of their legal responsibilities. It is worth establishing a pet-friendly accommodation as there are a handful of tenants who are willing to pay around 10 to 15% more in order to avoid the struggle of finding a suitable place for their pets. For better rental returns, aim to have longer lease periods as it could be less costly. If you were to advertise for 6-month leases, this could mean more fees, interruptions and extended periods of vacancy each year.
Need help getting started? iBuyNew will point you in the right direction! Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements.