Upgrades and renovations
For property owners looking to succeed in this market and minimise vacancy, quality is important.
For those who own older apartments, competition will be fierce from brand new buildings.
A well-maintained rental property not only ensures happy tenants, but generally in the long term higher rental returns.
Maintaining and repairing your property
If a tenant complains about a repair or maintenance issue at your investment property, try to address the problems quickly. Good tenants will always appreciate it.
Paint, carpets, blinds and light fixtures can really transform your property and give you a great boost to cash flow down the track as well as some depreciation benefits too. While considering this, you also need to consider what impact repair and maintenance will have on your current cash flow.
While you may not be able to secure much additional financial return for your property in the current market, it will generate more interest due to the property being maintained and presenting well. This will in turn reflect the vacancy and prevent you from losing returns on a vacant property.
Install additional appliances
This is becoming very common in the rental market. Any additional features your property may have over another, could be the point of difference that has perspective tenants applying for your property first.
Things like a dishwasher, air conditioning, ceiling fans, built in robes, remote garage access, plenty of storage, security features, outdoor entertaining area like balconies or courtyards, fully fenced properties, two separate living spaces (adults and children’s) and off street parking.
These are all fantastic additions that will assist in making your property more appealing to perspective tenants.
Quality photos of your property increase the number of hits on the internet, which increases the number of people who visit your property. We have found that most properties which have professional photos on the web rent quicker with more interest, than properties that don’t.
Advertising is a key component in minimising vacancy in your investment property.
– Professional photos will get you maximum exposure and more views online
– A “Feature Property” advertisement on the internet, places your property on page 1 of the most dominant portals
– Showing your property at tenant friendly times (times when employed people can make it to the inspection)
All of these points will assist in giving your property maximum exposure and interest in the property.
Proactive property management
When it comes to maximising your rental returns, a property manager can be an invaluable member of your property investing team.
Consider that a good property manager will:
Remember that for a small percentage of your gross rental return your property manager will carry out all these services and give you peace of mind whilst saving valuable hours of your time.
At Ray White Albion we eliminate the hassle involved in being a lessor by managing all aspects of your obligations during each tenancy (e.g. rental bond and fees, inspections, maintenance/access and tenancy disputes). Our agents also specialise in ensuring you are protected through strict contractual agreements that address your key legislative requirements (e.g. Privacy Act, Anti-discrimination Act, Trade Practice Act, Property Agents and Motor Dealers Act and the Residential Tenancies Act).
Include garden maintenance
This arrangement can benefit a landlord in a few ways. It ensures that the property is maintained at the same standard throughout the term of the tenancy and may also appeal to more perspective tenants. If tenants have a busy lifestyles or a family, they may not have the time to keep the gardens manicured but if you are offering them the solution, it can be a very attractive benefit.
This is a very interesting point to consider – pets! Even if you are not a ‘pet person’ yourself, generally speaking a lot of perspective tenants are. It can be quite hard to find properties which are pet friendly, some tenants are willing to pay slightly higher rent to keep their four legged family member. 56% of Australians have pets and 25% are considering getting one in the future – do you really want to exclude that many people?
Price the property right
It might be tempting at the end of a tenancy to assume your property rent is to be increased by $5 or $10, however if it is overpriced in your current market than you are more unlikely to secure a tenant.
This may ultimately cost you more if the property sits vacant for an extended period. It may be worth keeping the rent as is for the moment.
Do your research and price the property right to ensure you maximise returns.
Ensuring you have the right tenant in place is also crucial. If you have a tenant that pays a higher rent, but fails to take care of the property, it would make more financial sense to have a conscientious tenant paying less. Good tenants trump high rents!