Ways to Increase Rental Returns On Your Property
Landlords know the pain of high vacancy rates. They will do all that is within (and even beyond) their means to ensure that their properties are good on rent. After all, a smart rental return is a guarantee of a positive geared property and you would surely not fetch such returns if the property is vacant. This said, I have seen investors not spending much on the facelift of the property. They are wary of over-capitalising and in the process end up doing so little that the rental returns are jeopardised.
The best bang for the buck
From the perspective of an experienced professional, as I deem myself to be, I believe that a select few strategies can help you with the best bang for the buck where rental rates are concerned.
Add spark to your living area
Give spark to your living area. It is going to gather maximum footfall and in many ways, it is your signature area- one that stamps your personality on the visitors. The least you can do is to go for an engaging lightwork- LED can be a great alternative here. Flooring is another winner if you invest in wood work or tile finish (and you can be spoilt for choices here).
Bathroom can be quite an energy saver
Use a few tricks for your bathroom. It is one area where the modern showerhead and flush toilet can score over the traditional ones without much fuss. We have all woken up to the kind of energy savings the modern pieces can provide.
Right size air-conditioner
Go for an air conditioner that is neither too big nor too small. Yes, the purchase does entail a cost but you can immediately move the rent north by about $20/week- enough to offset the cost of the machine in one and a half years. Smart bet!
Aesthetic countertops, smart work triangle (kitchen, sink and refrigerator) and crisp and focused lighting can create magical paraphernalia in the kitchen. Naturally, the prospective tenants won’t think twice before saying a YES to relatively high rental rates.
As an aside, I would advise you to conduct your maintenance and repair in time. In fact, the ideal way to do it is to conduct it before time. You will do well to communicate with your property managers every so often and get briefed on such needs.
Do you use an individual property manager or an agency to manage your portfolio?