How to get your investment property ready for renters
It’s exciting looking at potential investment properties, and it’s easy to get caught up in all the quirky, neat and interesting features you love. However, purchasing an investment property requires you to adopt a different way of thinking. You can’t think about your investment like it’s your home. You have to start thinking about the numbers, rental demand, location, facilities – most importantly; you have to start thinking like a potential renter.
Set up your property for maximum ROI
It’s no surprise that you want your rental property to generate income. There are things you can do for your property that increase the rental value and makes it more attractive for potential renters.
Make sure the property is clean, maintained and presented well during inspections. Mowing the lawn, pruning the garden, spraying the tiles, steam cleaning the carpets and more. Cleaning up not only helps raise the value of your home, it helps you secure the best tenant. Most home buyers will understand if a property is old and needs some fixing, but they’ll rarely forgive the one that’s not clean.
Look for things that increase your capital gain
Get a property report from your lender to gauge your property’s potential growth and see if there has been a history of steady growth in and around your location. Contact Mortgage House today and find out how you can get your free property report.
Key things to look for are developments, redevelopments, zoning, new infrastructure for transport, increase in local businesses, and modern facilities like parks and schools. Upcoming developments will tell you if your location is an upcoming hot-spot for growth.
3 ways to win high-quality renters
1. Find out if there’s rental demand in your location
Locations with high rental demand are a safe bet for investors. Look for areas with good returns and low vacancy rates. Rental demand will always be high in areas close to transport, universities, schools, shops, cafes and restaurants.
2. Include some creature comforts
A few well-selected creature comforts can dramatically increase the attractiveness of your property. Including things like a dishwasher, washing machine, newly renovated ensuite, air conditioning and fly screens on the doors and windows help boost renter demand.
3. Pet-friendly homes are more desirable
Unfortunately, not many rental properties cater to our furry friends. It’s especially true for rental apartments. Making your property pet-friendly significantly increases its attractiveness. According to the Guide Dogs’ survey conducted in Victoria, pet owners are happy to pay up to 14% more rent for properties which allow pets.
On a $500 per week rental property, that’s $3640 extra in your pocket per year, just from allowing pets.
Meet the property regulations and standards
Now that you’re a landlord, your responsibilities will include keeping up with regulations and compliance. There can be a lot to take in when it comes to meeting the many regulations for properties. It’s a good practise to check with your local property manager to find out about recent regulations and compliance mandates that you need to stay on top of.
The most common regulations include:
Electrical installations must be compliant with the latest safety codes, i.e. having hardwired smoke detectors in specific locations in the house.
Taps and hot water systems must be in working order. The landlord is responsible for the annual water connection fee, while water usage charges can be passed on to the tenant.
Spraying for pests every 12 months is a good idea to keep the property healthy and safe for tenants.
All locks must be in working order, and keys must be provided for all available locks in the property. If the property has a pool, safety certificates are required to ensure the pool is adequately secured with a fence.
At Mortgage House, we’re no strangers to helping you become a property investor. It can be a long journey, but it’s a rewarding one.
If you’re thinking of investing in property, you can contact us for information about the best options for you when it comes to home loans.