When a tenancy ends, take this time to look over your property and make a checklist of things to be completed. Before you hand over that space, why not consider investing some time and make some lasting changes to improve your investment property.
If you’re not impressed with your rental return, then follow the tips below before renting your space and enjoy having that extra income to use however you see fit.
1. Decrease Vacancy and Turn Overs
Before we get into how you can psychically increase the value of your place with a series of quick renovation tips, first take a look at how often tenants stay at your property. You can avoid long periods of vacancy by being proactive about when fixed-term agreements are ending and if your residents are planning to renew the tenancy. If there are constant turnovers, then sit down and rethink your price point and the relationship you and your property managers facilitate. Good customer service is key to keeping people around, so make sure your tenants know they can contact you and their opinions are valid.
2. Upgrade Your Appliances
Before making any renovations, we always suggest you review your finances and budget for these expenses. You may have heard of the expression: you have to spend money to make money and, that can sometimes apply to the renting business. If your property is lacking certain appliances such as air-conditioning, dishwasher, and laundry facilities, these are excellent investments if they are affordable as they can increase rent anywhere between $5-$20 a week.
3. Redo the Bathroom
Nobody likes an unsightly bathroom; having one you can show off in pictures can help out. Before trying to tear the whole thing down, try the following to improve your already existing space:
- Clean or replace old fans
- Add heating lights – Not only are heating lights a luxury on those chilly winter nights, but they also help reduce humidity and mold in the bathroom. Meaning, in the long run, less maintenance on your end.
When it comes to keeping your bathroom looking it’s best you might want to ensure the following elements are all up to par:
- Replace all stained or cracked tiles
- Check seals on showers
- Remove any mold or peeling paint
- Fill in any missing grout
4. Make it Family/Pet-Friendly
Families will look to rent properties that meet their specific needs; this could include being close to local schools or being in a safe suburb. If you’re already in the ideal location, why not employ a few changes to make it easier on family life. For instance: fencing for children and pets to play or even the simple addition of a doggie door.
5. A Fresh Coat of Paint
Whether you’re considering a large scale paint of the entire exterior or merely refreshing the kitchen cupboards, a new color is a great way to make an old property feel brand new. Especially in the kitchen, where cabinets are always being used. Fixing up any unattractive paint job could be vital in gaining more returns.
6. Revisit the Garden
If your property is overflowing with untamed leaves and weeds, it might be time to put a plan into action. While the idea of a blooming garden is appealing to some, it can be off-putting to others. Unless you’re willing to provide maintenance yourself, try to ensure your space has an easy to manage the garden area.
7. Consider large scale renovations
If funds allow, the best way to increase the value of your property is to tackle its extreme makeover style. Usually, it’s the addition of new carpeting or a freshly renovated kitchen that makes tenants line up to view your property. Renovations can also allow you to charge up to $100 extra per week depending on the type of renovations done.
8. Parking
Providing your tenants with safe and secure parking especially around the inner-city suburbs can be curial for many looking to be renters. While adding a carport Is a huge expense, it’s a feat that’s tax deductible, will work to increase the long-term investment property ROI.
9. Security
Ensuring that your property has security screens and lockable windows can go a long way in ensuring the safety of your space and tenants. While there’s always rental property insurance, it’s best to be protected to ensure no damage or theft occurs on your premises. Security systems and lights are also a welcomed addition to any home. Just make sure a trusted provider installs and maintains them.
10. Storage
What can we say? People love walking into a place and seeing a huge built-in wardrobe with lots of drawers, or a kitchen stocked with places to put pans and plates. If you haven’t upgraded your storage by now, there’s no excuse with affordable solutions Australia wide.
11. Create Demand with Quality Advertising
Making a house rent sign and putting it up in the yard hoping that someone will show interest is something we used to do. If you are also limited to doing this, then know that it is a wrong approach.
With online marketing flourishing everywhere if you don’t advertise on social platforms you are losing a great prospect. Failing to create demand for your property will probably mean you will have to rent it at a lower price.
12. Raise Rent Upon Lease Renewal
Remind your tenants that your rent will increase after the end of each year. Afterward, tenants can decide to switch to month to month or six-month renewal. For month to month and six month renewal, charge more than what you would have charged for yearly rental. Keep the options open to the tenant just making sure the shorter the lease, the higher the price.
Always remember, good management can save you from making bad investments and vice versa, bad investments can kill good ones. As a homeowner, you need to be proactive and increase your rental returns. You may need to fix up a few things here and there. Or even consider renewing or taking out some landlord protection insurance.
The post How to Increase Rental Property ROI appeared first on Tweak Your Biz.
source https://tweakyourbiz.com/finance/financial-planning/rental-property-roi
No comments:
Post a Comment