Owning an investment property delivers great financial rewards to home owners, particularly in a property market where prices are continuing to rise; yet can deliver financial burdens when there is a call for maintenance, or when the property is on the rental market yielding no income.
Each week that your property remains on the property market is costing you money. Whilst it is important to keep your rental price attractive, it is equally important not to over-quote your home to a point where potential tenants find value elsewhere.
When listing your property for rent, it is important have an understanding of what tenants look for in a property. Tenants want a place to call home – a homely environment that is inviting, comfortable, simple and care-free. Whilst potential home buyers generally look for the quality and the potential in a property, it is important to understand that tenants think differently, and are more interested in the aesthetics and functionality of a home.
In a competitive rental market where tenants are spoilt for choice, providing tenants with the value they are looking for will allow you to charge the extra $10-$15 a week in way that is justified. Here are 3 tips we have discovered over the years which will make all the difference in your rental income:
# 1 Regular low-cost cosmetic improvements
Making small improvements or minor renovations to your investment property is one important way to ensure that you are maximising your rental return. Potential tenants who are looking for a place to call home, inevitably want a finished product; a place to call home that is presentable, inviting, and simple.
However, It is important to not over-capitalise with any improvements made. Giving the property a lick of paint, re-grouting and spray painting tiles, or re-surfacing kitchen cabinets are small low-cost ways of improving a property’s kitchen with less than a few thousand dollars, as opposed to paying anywhere between $10,000 to $15,000 completely renovating and remodelling a kitchen for the same return.
#2 Keep the garden minimal and low maintenance
Potential tenants are looking for a home that is inviting yet requires minimal maintenance. Front and back yards with lawns, gardens or plants appeal to the eye; however from a tenant’s point of view, requires far too much effort to maintain to a standard that keep’s the landlords satisfied.
Transform your yard spaces into low maintenance spaces by mixing a combination of artificial grass, crushed rock, mulch and low maintenance plants such as cordylines and yakka’s which require minimal watering. Decking areas are also a great way to make a home look inviting, yet allow for the low maintenance use of yard space.
#3 Necessity appliances and amenities
Tenants are looking for a home that is ready to move in. Unfortunately, a number of homes lack amenities such as air conditioning and heating, dishwasher, or a gas cook stove. By ensuring that you have all these amenities in working order and are current, a premium rental price can be justified.
Providing tenants with the value they seek will not only attract them to pay a premium rental price for your property, but will also retain them as they will not be able to find similar value elsewhere.
In a property market where the average rental price continues to rise, it is important that the value of your property rises along with it.
Finally, it is important to find an experienced property manager with not only a good understanding of the property market in your area; but also, one that is passionate and knowledgeable in property investments and can continually provide you with advice on maximising the returns of your property.
At Nguyen Real Estate, we would love the opportunity to discuss how we can help to maximise the rental income of property investments with you. So please feel free to contact us to see there is potential for more cash in your pocket!