To maximize the return on your rental investment here are 3 things to consider to help you get the right tenant, the right agent, and the best return on your investment.
Set the right rental price and review it regularly. Be sure to do your market research or have your agent do this for you, check out the competition for comparative properties, and keep on top of changing marketing conditions.
Understanding the current rental rates in your area is crucial in determining the right rental price for your property. Ensure you review the marketing and your price regularly so, if needs to be, you can be agile and responsive to changing market conditions. Be sure to factor in your overheads like the right insurance for your property and managing agent fees.
Choosing the right agent to manage your property is foundational in setting you up for and sustaining your rental success. The right Agent should be well-equipped, experienced, and resourced to effectively market and manage your property and tenants to ensure legislative compliance, maximize your rental return, and take the stress out of the entire process for you.
Things to consider in choosing an Agent are:
- Market knowledge to help you set the right prices for your local area and market conditions.
- Marketing strategy and brand presence to attract quality prospective tenants.
- Fees to manage and market your property.
- Tenant screening processes to carefully select the best tenant for your property.
- Team, communications, and systems support to manage ongoing communications, payments, reporting, and compliance for all matters relating to your property and your tenant.
Presentation of your property is an influential factor in attracting the ideal tenant you wish to have look after your investment and optimize your rental return. Putting this positive energy in right from the start of your rental agreement with your tenant encourages them to respect your property and work cooperatively with you in the event they want to leave or other matters come up during their tenancy.
Things to consider when working on your property’s presentation are:
- Don’t over-capitalize. Consider the rental return you wish to achieve and take a look at what comparative properties are priced at in your local area so you know your numbers and can spend accordingly if required.
- Invest in features that will add the most value. See the property through the eyes of the tenant in terms of their comfort and liability. New floor coverings or an air-conditioning unit in the living area may be more attractive upgrades than new guttering or a garden upgrade.
- A fresh coat of paint. A fresh coat of pain can brighten up a place and make it more inviting. Stick to neutrals where possible to appeal to more people.
- Fix the little things. Make sure the small things, like taps, locks, door handles, light fittings, and windows, are checked, taken care of, and work well before the tenant moves in. This lets the tenants know you are a considerate landlord who cares for their investment, and they will be far more likely to do the same for your property. Plus it will make it easier to notice any damage that may have been done when your tenant leaves.
- Freshen up or update bathrooms and kitchen. Outdated bathrooms and kitchens can put people off as these rooms are such well-used spaces in the house. Use tile paint over old or outdated tiles, resurface benchtops, and choose neutral tones to create a more inviting space for these areas without the high cost of renovation.
- Tidy up. Make sure any mess inside and around the garden is cleaned up and the areas are neat and tidy. Again, this lets the tenants know how you expect your property to be cared for by them.
Consult your Agent or financial advisor to ensure your decisions are right for your circumstances and the rental return you plan for.
To learn more about how to maximize your rental return or speak to an agent about managing your property, email email@example.com and ask for Tammy Carroll.