6 proven strategies to maximise your rental income
Maximising rental income is a top priority for property investors looking to boost their returns.
With the right strategies, investors can increase their rental yields, reduce vacancy periods, and enhance the overall value of their properties. Whether you're a seasoned investor or just starting out, these tips will guide you toward achieving higher rental income and long-term property success.
Clever renovations
By being more proactive with your property, investors could achieve anywhere from a 30 to 50 per cent increase in rental income by renovating and refreshing the property.
For investors on a budget, minor updates like paint, light fittings, carpets and blinds, toilet seats and vanities are a sure way to make your property more appealing. and allow you to charge a higher rent.
While many investors are hesitant to undergo a full bathroom and kitchen renovation, they should consider invest a few thousand dollars in upgrading wardrobes and installing a dishwasher and air conditioning. These go a long way in creating a comfortable and attractive home for tenants, which allows the extra charge in rent.
The benefits of renovating your rental will not only improve your rental return and increase the value of your property, but attract and secure long-term, high quality tenants while reducing maintenance and repair costs.
Offer fully-furnished properties
Furnished rentals can command higher rent, especially in high-demand urban areas.
Furnished properties that are ready to occupy are attractive for tenants who may be relocating for work, students or people who simply don’t want the hassle of packing and moving, or short-term renters who want the flexibility of not having to invest in furniture. It’s widely acknowledged that furnished properties will come with a slightly higher rent, as it eliminates the significant upfront cost of having to purchase furniture for the occupants.
Upgrade to modern amenities
Install energy-efficient appliances, air conditioning, or smart home technology to attract premium tenants. Investing in these upgrades not only increases rental income but also enhances the property’s market value. Energy-efficient homes are becoming more desirable in the real estate market, making them a smart long-term investment.
Modern, energy-efficient systems and appliances are designed to last longer and require less upkeep. This reduces maintenance costs over time, helping investors save on repairs and replacements while keeping the property in excellent condition.
Price competitively
Regularly review rental rates in your area to ensure you're charging market-competitive prices without underselling your property. Your knowledgeable property manager will be able to guide you on comparative properties in the local area and how best to price the property. Landlords that meet market demand tend to have more success in attracting long term, high quality tenants than those who over-price their properties in a tight rental market.
Cater to pet owners
Pet owners are a growing demographic in the rental market, so investors should consider allowing pets to widen their tenant pool and increase rent with a pet-friendly policy. With many states in Australia now putting their attention to pet-friendly rental policies, there is a greater incentive for investors to consider making their properties more attractive to pet owners.
The Tasmanian Government has tabled amendments to the Residential Tenancy Act to mandate the keeping of pets in privately owned rental properties. A pet-friendly approach will see Tasmania fall in line with other states.
In Western Australia, new laws effective from July 2024 include the introduction of pet-friendly policies, which gives landlords more certainty while maintaining control over their properties.
In certain instances, landlords retain the right to refuse pets, ensuring that some flexibility is permitted. Landlords have the ability to impose reasonable conditions, such as requiring professional cleaning and pet bonds, which helps protect the property's integrity while expanding the potential tenant pool to include pet owners.
Rent out additional spaces
If you have unused spaces like garages, storage units, or extra rooms, consider renting them out for extra income. In areas where parking is scarce, parking spots are a big attraction.
The Agency's Property Management team are party of a truly national business, our reach extends from coast to coast. This affords us an unparalleled depth of knowledge in every market across Australia.
Get in touch with The Agency Property Management team today to see how we can increase your rental returns and maximise your investments.