Is your investment property underperforming while your land tax, interest rates, and other holding costs going up? True Power Realty helps property investors to increase their rental income and capital values.
If you are looking for easy ways to increase your nett rental income, here are some strategies to consider:
1. Is Your Rental Income Set to Market Value?
One of the easiest ways to increase your rental income is to get a Comparative Market Analysis (CMA) before a current lease is due to expire, or before a rental property is put on the market.
A CMA will help you compare your investment with other rental properties in the area that share similar characteristics. The CMA serves as a guide to help you decide what amount of rent the market is willing to pay for your investment property.
The True Power team provides regular market analysis so that you can be certain your rental income is always at a premium.
2. Cosmetic Renovations Increase the Value of Your Property
Adding cosmetic changes can freshen up your investment property’s appearance. Simple improvements can include repainting the walls in neutral colours, replacing outdated fixtures, and updating flooring and windows. These inexpensive updates can make the property more appealing to potential tenants, allowing you to command higher rent.
3. Add Value with Amenities
Evaluate your investment property’s amenities and add new features that are in high demand. In Brisbane, installing air conditioning and ceiling fans is a must. Connecting your property to the NBN network is also a must, particularly for tenants who work from home. These desirable amenities can attract a wider pool of tenants and help justify a higher rental price.
4. Add Security Screens
The feeling of being safe in your home is paramount. Tenants want that feeling, and a home that presents more than just the basic door and window locks is likely to attract a higher rent. Sensor lights or security screens can be good additions while adding capital value to your property.
5. Increased Storage Space Attracts More Tenants
Storage options are often overlooked by landlords who are renting out smaller homes. Adding built-in shelves or closets can justify a higher rent as the increased storage is valued by tenants.
6. Upgrade Appliances and Fixtures in Your Investment Property
In an ever increasingly busy world tenants embrace conveniences such as a dishwasher. And on hot humid Queensland days, your tenants won’t blink at paying a few extra dollars a week for an air conditioner. Installing or upgrading these appliances to more energy-efficient models is a smart move and can be claimed as a tax deduction.
Replacing outdated fixtures such as taps or lighting fixtures can also improve the overall quality of the property and contribute to a higher rent.
7. Outdoor Living Spaces Add Value
Rental properties that offer covered verandas, a BBQ and seating area for outdoor meals, or a lawn for the kids to play can deliver greater value for tenants and greater returns for property owners. These additions can also be relatively inexpensive to install.
8. Allow Pets in Your Rental Property
Allowing pets could be a great option. People get pets for many reasons and for some they make a family complete. Your existing tenants could be happy to pay a little more and extend their term for the joy of a pet in the home.
9. Offer Flexible Lease Terms
Landlords can also increase their rental income by providing flexibility in lease terms to attract tenants who are willing to pay more for convenience.
Shorter lease terms, such as month-to-month or six-month leases, can be popular with tenants who value flexibility. However, make sure to weigh the potential benefits against the risks and costs associated with frequent turnover.
10. Furnished Properties Increase Rental Income
If you have a property in a desirable location, you can earn a higher income stream as a fully furnished rental. Furnished rental properties often command higher rent from corporate renters or short-term tenants. It’s important to assess the market demand in your area, and then install quality furniture and household items that will appeal to tenants.
11. Adding Value to a Residential Rental Property
Home improvements can add capital value to your property and drive increases in your rental returns. However, it’s important to note that what you value may not be in demand by the market.
Before sending in trades to make improvements to the property, it is also important to consult your current tenant. If the tenant does not see value in the improvement, the opportunity for a rent is much less.
For best results, consult with True Power Realty. We are your trusted property manager and will use market analysis to ensure the returns delivered are at or above your expectations.
What Our Clients Say
If you’re looking for a fabulous Real Estate Agent, True Power Realty is the one. Excellent, trustworthy property management. Due to someone else’s recommendation, I switched to True Power Realty. It was the smartest move. I can’t rave about them enough.
Maureen Majella Scanlan – Suburb, Brisbane
True Power Realty have shown us care and professionality during our time with them. Andrew is thorough and inclusive during inspections; I value his humble approach.
We have always been met with kindness. Andrew is easily contactable and delivers all manner of documentation, including invoicing and receipting, in a timely fashion. I happily recommend True Power Realty.
LKS Mailata – Suburb, Brisbane
Professional management, honesty, timely manner to deal with the issues, quick response, and good communication. I’ve been with multiple property agents for the past 10 years and True power realty is absolutely none to second so far. Highly recommended.
Jesang Kim – Suburb, Brisbane