Improving Your Rental Income
Australian property owners can increase their rental income by following these strategies.
Australian property owners can increase their rental income by following these strategies.
Great ways to boost rental income for Australian rental property owners.
Your investment property is an asset that you can leverage. To do so, you might want to consider ways to maximise your returns.
There are two main ways to raise your returns on investment. You can increase rent or lower expenses. Both are worth a look.
A good place to start is by reviewing your rental rates. Compare them to the current average in your area to see if they are at or above market rate, or if they’re below market.
Before you sign a lease, be sure to review any rent increases. Each state has different rules for how often rent can be raised. It’s also important to give tenants plenty of notice. Check the tenancy agreement to be sure any rent increase doesn’t breach the lease terms.
Small, regular rent increases may be easier for a tenant to afford than large increases. Before implementing any rent rise, landlords should consider the health of the local rental market. If vacancy rates are high and finding new tenants is difficult, it may take time to re-let a property.
A property’s rent potential can be increased by making improvements to the property. These are not always cheap, but some minor renovations could boost your return.
A simple freshen up can revitalise an outdated bathroom. A fresh coat of paint, a new vanity unit and modern tap fittings or an eco-friendly showerhead can be budget-friendly ways to modernise your bathroom.
Some tenants may value a carport or garage. This may increase the property’s floor space and potential storage area, and add value to the property.
Carpets, Tiles, Timber Floorboards
Older properties can benefit from floorboards that have been polished or a floating floor. These types of flooring are easier to clean, potentially lowering your maintenance costs.
Adding extra storage, such as wardrobes or cupboards, could increase your property’s tenant appeal and rental value.
The percentage of rent paid to an agent varies widely. You could expect to pay between 7-10% of your monthly rent. The reward could be a significant increase in your income if you have the time and energy to manage the property yourself. The downside is you won’t get the benefit of a property manager’s expertise.
A property manager has the necessary contacts for local tradespeople, understands legal requirements for renting a property and has time to check tenants’ references or monitor late-paying tenants. A DIY approach to property management can result in having to manage such tasks yourself.
Reviewing your property management company may help you find ways to cut costs and boost returns.
Reviewing the rent and costs associated with your investment property could help you improve cash flow and increase returns.
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