Receiving a strong rent return from your investment property is so important in meeting the costs of holding onto your property, and achieving the goal of having your investment provide you with an extra source of income. Here are 7 keys to a healthy rent return.
As always, it’s about buying the right property, in the right location. An in-demand property in a growing property market will help you to find a tenant quicker, and keep you property tenanted more. Choose the sort of property for the location which majority of people in the area will want to live in. This will ensure you can attract a premium rent, which will also grow over time.
Having the right leasing and management expertise can be a real asset to attract the maximum possible rent. This is especially the case if your property happens to be in another city or state. Having the right team on the ground will help you with local market insights and trends. They can help to regularly review your asking rent for existing properties, and ensure well designed marketing campaigns will attract the right sort of tenant.
Buying new rather than old can have a positive impact on your rent return as well. You can imagine your prospective tenant walking through your shiny new property, compared to older properties which may be dated or in need of a bit of work. Tenants will pay more for new - especially when it comes to that modern new kitchen and bathroom.
To maximise your rent return your property must be functional and attractive to a wide variety of prospective tenants. This can come down to the number or bedrooms vs bathrooms, size of living spaces and floorplan designs. Odd floorplans which may offer smaller than ideal living areas or bedrooms will be harder to rent for a premium, compared to properties which are more liable and comfortable.
Depending on your location and typical tenant, garage spaces can be a big factor. Family homes which offer a double garage will typically rent quicker and for more than those with single car spaces. Even if the second is an under-cover carport, if your typical tenant is likely to have a couple of cars, this can be an important factor in meeting expectations and getting the rent you want.
So you don’t necessarily need to fall in love with your investment property. It’s not your dream home after all - it’s there to grow in value and give you a return. However ensuring your property
has positive street appeal, and is attractively presented will help you increase your rent return. It’s also best to stick to designs and colour schemes which are likely to have broad appeal. You don’t want to be turning away prospective tenants because they’re not a fan of your pink feature wall or lime green carpets.
While it may not always be an option, looking at dual key properties or the possibility to add a granny flat to the home can be a great way to really boost your rental income. As you can imagine, being able to earn two rents for the one property will significantly increase your income, for pretty much the same cost of maintaining the property.