4 WAYS TO BOOST RENTAL YIELD ON YOUR INVESTMENT PROPERTY
While thinking about your investments and finances you could be wondering how to get the most rental yield from your assets. It’s a good time of year to think about the shape of your investment properties and what you could do to improve your return for the following financial year. Here are the 4 tips according to Scott Johnson from Blink Property Management.
1. ADOPT A TENANTS POINT OF VIEW
What type of tenant do I want to attract to my property, this is very different then asking yourself “would I live their” knowing the type of tenant you trying to attract will greatly improve the quality of tenant and also improve your rental yield. Put yourself in their shoes and think about what kind of things would add appeal for them? Having an appealing property is not the same as having an attractive one. As long as the property is neat, tidy and well maintained it should satisfy most prospective tenants. Just because you personally don’t like the tiles in the bathroom or color of the carpet it does not mean you needs to overhaul it to attract a tenant.
2. DON’T NEGLECT MAINTENANCE
We often see landlords who take the small fixes for granted and won’t bother fixing them. That loose towel rail, torn screen, leaking tap, or even just a quick wipe over clean prior to showing your vacant property, can make all the difference. It can potentially scare off your ideal tenants, meaning you could get lower quality tenant and wait 1- 3 weeks to lease the property as opposed to 1-3 days. The less things they see wrong with the property the higher your chance are of gaining an application sooner rather than later. Common requests from tenants are installing ceiling fans and dishwashers. A dish washer will gain you additional value to your rental income, and ceiling fans also help tenants choose your property over another.
3. LAWN AND GARDEN CARE
If your investment has a lawns and gardens it’s important that these are immaculate, good street appeal will increase value. You can add a lawn and garden care to the terms of your lease, you as the landlord can generate an extra 10-20 per week simply by having garden and lawn care attended to once a month. Benefits to you is that the property is maintained, has a higher ROI and the costs are tax deductable.
4. SPEND MONEY ON PHOTOGRAPHY
When listing your property it’s important to note property manager are not photographers, a well marketed property will have professional images. This dramatically increases the enquiry on your property and your investment property will have higher attendance rates at inspection times. Which leads to a tenanted property. Photography should be done 1 every 12-18 months unless something changes i.e. a renovation. Photography is also tax deductable and should cost no more then 100-120 per property.