Tips to Improve the Rental Income From Your Investment Property
Capital gains are great for growing your wealth in the long term, but it’s rental payments that do the work in the short term. With property investment becoming increasingly popular with Australians and foreign investors, it can increase the availability of rental properties. But more choice for tenants can also bring down rents.
So how do you safeguard the rental income from your investment property? Here are some tips to get you started.
Understand your target rental market
Before you buy your investment property, you should consider what type of people reside in the area and the kind of accommodation they’re seeking. For example, if you’re investing in a studio apartment in an area which is popular with families, then you may find it harder to find the right tenant. That’s when seeking guidance from the local real estate agent could give you insights to ensure you’re making the right property purchase.
Review how much rent you charge
It’s important to review your rent from time to time to make sure it’s in line with current market trends. If you charge rent that is too high, you may struggle to find tenants.
On the other hand, if you haven’t changed your rent for a few years, you might be missing out on potential profits. Finding the right balance will require careful consideration and an understanding of the state of the property market. A professional like a property manager could provide insight to guide your decision.
Make your rental property pet-friendly
Although Australians love their pets, finding a rental property that’s pet-friendly can be hard to come by easily. Pets damaging or messing up the property can be a concern, but also look at the plus side of making your rental property open to pets.
You could generate more interest in your property from pet owners, who may be willing to pay a higher rent or additional bond for the convenience. And because pet-friendly rental accommodation is hard to find, you might even have tenants for the long-term.
Renovate your property to attract more renters
Think strategically about how you can add value to your property while enhancing its features. Converting an unused storeroom into a spare bedroom, for example, will give you the ability to house another tenant, and create another source of revenue.
Enlist the help of a professional
Enlisting the help from the right professionals in the field could save you a lot of time and hassle. They will help you take the right steps to increase your rental returns. These professionals know the ins and outs of the property market and can help you make informed decisions.
A property manager that specialises in investment properties can take care of advertising, shortlisting and checking credentials of potential tenants, taking care of maintenance or repairs, regular checks of the premises and stay on top of rent payments. Their service comes at a fee, but it may be a small price to pay for the peace of mind and rental income that you get.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying your first home or investment property, you can contact us for information about the best options for you when it comes to your mortgage.