Whether you’ve recently acquired an investment property or have a long-held portfolio, it’s always beneficial to review your assets to ensure returns are maximised.
If you’re the type of property investor that relies on your property manager for guidance, particularly for direction to optimise rental returns, you’d want to make sure that you’re using a company that offers an advice-driven service.
It might come as a surprise to hear but as long as your property is leased and you and your tenants are happy, then the average property manager wouldn’t think to look at increasing your rents.
However, it’s important to review your property portfolio, ideally on an annual basis, to ensure you’re receiving the best rental returns.
Here are five tips to maximise your property portfolio’s returns
1. Update or renovate where required
This is one of the most obvious, and generally most effective, ways to maximise rents.
It could be as simple and low cost as giving the interior a fresh coat of paint or something bigger, such as renovating the kitchen or bathroom.
Upgrading the kitchen, though, doesn’t have to be an expensive exercise as you can complete a cheap facelift by updating fittings and fixtures and installing new benchtops.
2. Install additional appliances
A dishwasher, reverse-cycle air conditioner, alarm system or other ‘value-add’ appliances can help to maximise returns on rental properties.
For example, in a hot climate tenants may pay extra for an air conditioner, while a large family might pay more for a dishwasher.
3. Be pet-friendly
Because most landlords will not allow tenants to own pets, permitting animals on your property can attract premium rents.
While there are downsides to allowing pets into your investment property, it remains a reasonable option that should be considered thoroughly.
4. Price the property right
It might be tempting to ask that little bit extra for your rental property, however, if it’s overpriced you’re highly unlikely to secure a tenant, which will ultimately cost you more if the property sits vacant for an extended period.
Do your research and price the property right to ensure you maximise returns.
5. Property development
While you might initially think property development isn’t feasible, simply because of the financial cost, changes to planning rules and regulations in recent years have made it an attractive options for many.
On a block in which you might currently have just one dwelling you might be able to build additional dwellings or even ancillary accommodation, which can command more rent and potentially increase the value of the property overall.