How to Increase Capital Cash Income and Maximise Your Rent Value Return
Ever wondered why some properties sizzle, and others fizzle? There are a number of factors which influence the potential rent a property can command. Here are some top tips to maximise your rental value.
If your property is not near a public transport link or in the best neighbourhood, don’t lose heart; there are plenty of ways to ensure for you to enhance rental returns.
Present like a pro
With the market for rentals being so tight, potential tenants are quick to make decisions. Having a well-presented property will give you the greatest opportunity to attract the best tenants and snap them up without delay. Scrimping and saving on costs is not the best way to go. Instead, consider installing quality bathroom and kitchen fixtures.
Have the property professionally cleaned
Always keep lawns mown and the outdoor area tidy for any inspections. Ensure that you have a clean and freshly painted property. Prior to letting, have the place professionally cleaned including carpets and windows. An attractive property helps to attract a good tenant who will look after it.
Use neutral and soft furnishing
It is a good idea to avoid highly personalised furnishing and colour schemes in order to appeal to a broader range of tenants. Keeping colours light and neutral is a good idea, because it makes the space feel lighter and larger. Stay away from cheap, vertical blinds that break when the windows are open. While they are inexpensive to install, they don’t help with the presentation of the property and need to be replaced sooner. Likewise, reconsider the type of carpets of flooring you will be installing. It should be tough enough to handle a lot of wear and tear, but still presentable. Some of the more modern office carpets are worth consideration.
Make sure things work
It’s not good having a beautifully presented dwelling if a tap doesn’t work. Ensure that all the basic facilities such as hot water system and plumbing are functioning well. Check that all doors and windows are properly maintained and have secure locks. Ovens, kitchen elements and refrigerators should also be fully functional and well cleaned. Consider getting these checked and serviced on a regular basis. By ensuring that your property is in good condition through regular maintenance, you avoid costly repairs further down the track.
Throw in some extras
Most tenants come with their own appliances and knick-knacks. However, some extra amenities – such as a dishwasher and air conditioning – can be a deciding factor for many tenants. Unfortunately, any facility or amenity you put in is your responsibility to maintain or repair. This means that if they break, the cost will come out of your wallet.
Install built-in cupboards and wardrobe cabinets
Cupboards are painful to move, and hard to live without, so people tend to rent places with lots of built-in storage.
Provide a separate internal laundry facility if possible
You don’t need to supply the machine, but if the laundry area is internal and separate, it could be a huge benefit.
Keep the place secure
Security is always a consideration for tenants so make sure that at least the doors have security screens. If money permits, then add security screen to the windows as well.
Car parking is a big plus, especially in city dwellings
Providing an off-street covered and lock up garage will enhance your property value considerably.
Keep gardens simple
Gardens may help boost your rental value in theory, however, gardens are quite difficult to justify. Try to keep your gardens fairly basic; it’s unfair to have all these plants and expect your tenant to take care of them. You have to be realistic as to how much gardening you can do as opposed to the tenant, especially with the issue of water rationing as well. As long as the front lawn is well maintained and mowed, that’s as good as you can reasonably expect.
Set realistic expectations
Trying to get the highest rent may not necessarily result in a better rental return if you cannot keep reliable tenants. It’s crucial that you don’t price yourself out of the market by embarking on a very expensive renovation.
Go for long-term tenants
The benefits of establishing long-term tenants include: less need to redecorate and renovate between leases; long-term tenants tend to take care of the property for themselves; less vacant time means more returns in the long run; and finally, it’s just easier and less stressful to manage. Therefore, be prepared to be flexible to keep a good long-term tenant.
Visit RealWay Renting page or complete a form for a Rental Appraisal Open Form