10 tips to maximise your rent

As a property investor it’s your job to maximise the return of your assets.

One way to do this is to maximise your rent.

Here’s a list of 10 ways to do this that I’ve learned over my 20+ years in property management which has now allowed me to oversee the team that manages properties for clients through our property management department at Metropole:

1. Refresh

Rents need to increase to keep up with inflation if your rent is tracking backwards it’s because of increasing supply out pacing demand in your area or most probably lack of investment. Big Painting Job !

This is a vicious cycle because as your property deteriorates so do the references of your tenants and the trouble really starts.

Cosmetic touches lift rent and equity at the same time.

Paint, carpets, blinds and light fixtures can really transform your property and give you a great boost to cash flow as well as some depreciation benefits too.

2. Longer leases

I don’t like 6-month leases because it could mean two letting fees and two periods of vacancy each year.

Instead I like commitment from my tenant and longer leases such as 12-month leases means less interruption to my cash flow.

3. Minimise vacancies  

investor-enquiry-form

Professional photos advertising your property, feature property status putting them on page 1 of the most dominant portals and showing your property 3 times a week at tenant friendly times (times when employed people can make it to the inspection) will be a good start.

4. Set a rent at 95% of market 

This one is a little bit counter intuitive but it means you will have much better enquiry and therefore a range of tenants to choose from.

It lets you pick the best qualified and they will more than likely stay longer.

If you have only one application did you pick the tenant or did the tenant pick you?

5. Include garden maintenance 

This can really solve two problems.

The neglect of the outdoors of your property (remember street appeal counts) and a higher market rent with a tax deductible expense.

6. Consider Pets dog loyal woman friend pet fun walk

I own lots of Pet friendly accommodation because these tenants get discriminated against and are willing to pay 10-15% more to keep their four legged family member.

56% of Australians have pets and 25% are considering getting one in the future – do you really want to exclude that many people?

7. Mod cons

Tenants love them and they can really add value so try and get as many of these in your property.

Things like a dishwasher, air conditioning, built in robes, remote garage access, plenty of storage, security features, outdoor entertaining area like balconies or courtyards, fully fenced properties, two separate living spaces (adults and children’s) and off street parking.

8. A good tenant

Rental properties can be like Rental Cars in the fact they get driven hard.

A good tenant is worth their weight in gold keep them appreciate them and consider rewarding them.property manager

It really is half the battle.

9. Proactive Property Management 

A proactive manager notices a water leak in the bathroom vanity and gets it fixed.

A reactive property manager notices the vanity is water damaged and the door no longer closes and a replacement vanity is ordered.

The difference of being ahead of the curve or behind is huge.

10.   Some Don’ts

  • Furnish – very niche, very transient tenants more vacancy and more maintenance list
  • Short term lets – more vacancy, more costs
  • Rental guarantees – the cost is priced in and you pay for it.
  • Price the rent for what you need to pay mortgage – the market decides the appropriate rental – not you
  • Get involved – keep at arm’s length – use a professional property manager
  • Self-manage- it’s harder than you think! Good Property managers make you money
  • Let your leases expire at quiet times of the year like around Xmas time
  • Be the smartest person in the room – take feedback and advice from your trusted team of advisers

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About

Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients. Visit: www.metropolepropertymanagement.com.au


'10 tips to maximise your rent' have 5 comments

  1. Avatar for Property Update

    May 9, 2017 Schambs Property Management

    A lot of information on this post. These tips will really have a big impact on your rental properties and can increase your cash flow. I would recommend these tips to my clients. I hope to see more post from your Michael. Thanks for sharing

    Reply

  2. Avatar for Property Update

    February 3, 2017 Mark Johnson

    Question for yourself, Kevin and others, in the article http://propertyupdate.com.au/10-tips-maximise-rent-shannon-davis/ one of the don’ts is to have leases expire around Christmas. We’ve been advised by our managing agent that early December and mid January to mid February are the best times as there is so much movement here, Albury Wodonga. Does around Christmas time mean the week before and after of does it mean December and January?
    keep up the good work, always manage to fit 10 minutes into my day of your blogs

    Reply

    • Avatar for Property Update

      February 3, 2017 Michael Yardney

      Interestingly Mark at Metropole we have had an amazingly busy leasing month in January this year – in fact a record month,but in the past we’ve found paople don’t want to move or commit to moving in the week before Xmas or the first week or so of January, so we try and work around this with lease expirations if possible

      Reply


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