10 Quick Tips For Earning More From Your Investment Property

increasing investment property value

1. Professionally style and market your property

Professionalism with every aspect is crucial. The styling, photos, copy and all marketing strategies must all be done to a meticulous standard. Having your property professionally presented and marketed will attract quality tenants and maximise your return.

2. Perfect timing

The rental market is very seasonal. Capitalising on the peak seasons will greatly increase your investment return. The Northern Beaches rental market is booming from September right through to around March. It is best to establish a length of tenancy that promotes your property in these months of the year.

3. Increase the rent annually

Each year you it is a good idea to revise your rental return to stay in line with market trends. So if you’ve had a property rented out at the same amount for more than a year, you are most likely to be cutting yourself short. Contact us today if you would like an update on your rental property.

4. Slow increments

It is a good idea to keep your tenants on side by increasing the rent slowly rather than surprising them with a significant increase in one go. You are most likely to scare your tenant off if you do a sudden price jump, so a gradual increase is much wiser. On the Northern Beaches it is best to implement increases in the warmer months (Spring/Summer) when other rental prices are higher. You will have more social proof to show the increase is reasonable and fair.

5. Throw in some extras

Most tenants supply their own appliances. However some extra appliances and amenities can squeeze a few more dollars from a tenant. Make sure if you do this that your appliances are in line with your target market. For example, if you have a luxury penthouse, a high end coffee machine, a surround sound entertainment system, a water purification system or such amenities will be appeal to a professional tenant and increase the rent for your investment property.

6. Flexible leases

Although six and twelve month leases are considered standard, offering more flexibility may allow you to charge a higher rent. Leases can be arranged for periods outside of six and twelve month if agreed by the tenant and landlord so don’t be afraid to use it as a negotiation tool.

7. Consider renovations

A few quick updates to your rental property can go a long way. You don’t need to spend a fortune. Consider a fresh coat of paint, an update to the kitchen handles and bench-top, adding an additional bedroom if the floorplan allows, some landscaping to outdoor areas, and renewing old floor coverings. The money you spend will be tax deductable, increase the value of your property, plus significantly increase the rental return.

increase property value with renovations

8. Worst Case Scenario

Always be prepared for the worst. Be sure to choose a reputable property manager who you can trust will do their due diligence in caring for the property like their own. It is also best to always have a portion of your investment returns set aside for emergencies and repairs for the property. It is always better to be prepared for the unexpected.

9. Better Advice

Never rely on advice from neighbours, friends or family in regards to what your rental property should rent for. 9/10 times they will give you an inflated estimate. An unrealistic asking price will increase the chances of your property remaining vacant. Always consult a property management professional to ensure that you’re pricing your property correctly.

10. Welcome well trained pets

If your property is suitable for animals, it is worthwhile knowing that you are certain to achieve a much a higher rent if you are open to considering pets. Advertising this information will mean you attract more potential renters and a significantly higher rental return.

 

For further information on earning more from your property, phone or email us today!

Tim Cullen on    0424 006 855

Bernadette Cullen on    0414 618 908

About Tim Cullen

Since joining McGrath Estate Agents 15 years ago, Tim Cullen has defined himself as a first class industry leader with an outstanding track record and rapidly growing and loyal client base. He ranked 1st on the Northern Beaches in this year’s Real Estate Business’ Top 100 Agents List and ranked 21st nationwide.