2 Ways to attract higher rent… Yes you heard right!
It’s absolutely not a secret that the rental market in some areas of our country is low, but just because some particular areas don’t have growth doesn’t mean that investors can’t achieve a higher rental return-
The truth is, you can manipulate higher rents no matter what the current market is doing– (yes you can, keep reading) I’ll explain below 2 of Seaside Asset Management’s strategies to achieve a higher return.
1. Minor Renovations and Improvements
There are a number of minor improvements that you can undertake on your rental property that will attract not only more prospective clients, but also a higher return. From a tenants prospective turning up at an open for inspection with a crowd of people creates urgency- in some cases a bidding war. However, it is absolutely critical that any improvements or renovations such as new carpet, freshly painted, new blinds etc are listed in the advertisement and the advertising photos reflect the true current state of the property-
Some minor improvements that are favourable to prospective tenants include:
– Repainting internal walls
– New blinds or curtains
– If you have an older home with no wardrobe space, purchase freestanding robes from Bunnings or Ikea
– Install a dishwasher
– Install new carpet
– Install a ducted heating unit, or evaporative cooler
Remember all of these items are tax deductible- I will touch on tax depreciation schedules next week.
2. Allowing Pets
It is still extremely difficult for tenants with pets to secure a rental property, despite there being nothing in the Victorian legislation regarding an owner being able to withhold permission (but many tenants aren’t aware of this) This is because landlords are more concerned about the cat or dog potentially causing damage than securing a long-term tenant.
Times are changing….
These days (I can speak for myself) some dogs and cats are looked after far better than children! If your property manager is carrying out inspections every 6 months this is something that can be monitored. You also need to think of the demographic in your area, for example Frankston- near the beach, family orientated area…. People do have pets!!
Educated landlords understand that the key to successful property investment is to invest in the type of property that is always going to be in high demand, also that long term happy tenants are fundamental to a successful long-term property investment journey. Tenants with pets are generally grateful for the opportunity of actually being given a home and will often return the favour by paying more rent and staying in the property long term- meaning less unnecessary vacancy.
If you are interested to take the step and make minor changes to your property (recommend whilst property is vacant between tenancies) speak with your property manager regarding reliable, reasonably priced trades people.
If Seaside Asset Management can be of any assistance please don’t hesitate to contact us.