How to increase your rental yield
With the sharp rise in houses prices across Australia over the past 18 months, rental yields have been driven lower and lower.
For investors, a strong rental yield should be an important part of their overall investment strategy, as it allows them to hold onto the property with less out of pocket costs.
Here are a few ways to boost your rental yield:
Depending on where your investment property is located, the addition of a few different appliances can make a property incredibly appealing.
Something as simple and relatively inexpensive as a dishwasher makes a property far more in demand than one without.
The same is also true for air conditioning. If you live somewhere in Australia with relatively hot summers, air conditioning is almost a must. You don’t need to go all the way with a large ducted system – a modest reverse cycle unit will suffice in most instances and is a good way to get a slightly higher weekly rent.
Another idea for smaller apartments is to have a built-in washer/dryer unit. Many older apartments don’t have space for a washing machine, let alone a laundry. People appreciate the added convenience of having a laundry ready to go.
Timing of your lease
Just like when you’re selling a property, when you put a property on the market to rent is equally as important.
Typically, the summer months are when there is the most demand for rental properties. If your goal is to maximise your rental income, then you should look to find new tenants when there are the most people looking.
While you can’t control something like a tenant leaving, you don’t always have to go with a standard 6 or 12-month lease. You can stagger the lease so that it comes out of its tenancy during summer to give yourself the best opportunity to attract a solid tenant and obtain a good price.
While most people understand that a renovation can add overall property value, it can also improve rental yield.
The most obvious place to start with any renovation is the kitchen and bathroom, but depending on your budget, that might not be viable.
In terms of value for money, floor coverings, window coverings and a coat of paint can be a cost-effective way to really improve the presentation of your property and potentially make it more attractive to would-be tenants.