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Top 10 ways to increase rental return
Property renovation expert Deanne Heath said the worst case scenario is having a vacant property because of unrealistic rent prices.
“There is a balance to increasing rental return and attracting reliable paying tenants,” she said.
“Knowing how to maximise you’re your investment comes down to 20 key elements.
“But if you stick with the top 10, you will be laughing.”
Deanne said the most important elements of looking after rental property, ensuring it is not vacant, is having the right team on board.
“A good property manager is worth their weight in gold. You want an agent that stays in touch and knows their stuff – like the local market,” she said.
“Look after your property. I know maintenance is one of those things every landlord hates doing, however, delaying maintenance is often counter-productive to achieving rental growth.
Deanne said this includes getting the foundations right. “Tip 3 is to make sure the carpets and walls are clean, appliances checked, fire alarms working and security up to scratch,” she said.
“You may also want to consider allowing pets. This seems odd to some people but those pet owners find it very difficult to find a rental property and are usually more than happy to pay a premium for the property they rent.
“Also consider renovating the kitchen. I don’t mean spend $30,000 but you can do a lot for less than $5,000, you just need to get creative.
“These low cost renovations far outweigh the costs and see rental increases up to 35% a week.
Deanne suggests owners look at claiming all tax deductions.
“An easy way to do this is to contact a quantity surveyor and ask for a depreciation schedule. This lists all of the items that can be depreciated which in turn can result in a larger tax refund,” she said.
“Another renovation idea is to update the bathroom so it looks modern and clean.
“What about installing new equipment. I know spending a few grand on new air conditioner is not what most owners want to do.
“It can see an immediate rental increase of $20 a week for most landlords. This will be paid for within 18 months, after that time you will still receive the additional rent. Most costs will bring tax and depreciation advantages as well.
“Here’s one out of left field – ask your tenants if they need anything!
“Asking this simple question can create value to any tenant and show you have their best interest at heart.
“My final tip is to add space. Many older style places lend themselves to erecting a wall in a large lounge room or a large bedroom to create an extra room. This can take your property to a whole other price point for rent.”
For more articles on property renovation go to www.propertyextreme.com.au