Maximising your rental return is a key part of owning an investment property, but where should you start? We take a look at ways to boost rental return and why you should use a property management specialist to help you.
When you have an investment property, one of your main areas of focus will be how to maximise the income it brings into your portfolio. But when it comes to boosting your rental return, knowing where to start or what to focus on to add value can feel overwhelming for many owners.
Let’s take a look at how a property management specialist can help increase rental returns on an investment property and why a professional opinion matters.
What Is A Rental Return And Why Does It Matter?
Rental return refers to how much income your investment is giving back to you through rent payments from your tenants, often expressed as a percentage of the property’s overall value. For example, a $600,000 property receiving $30,000 in rent per year has a rental yield of 5%.
Typically, this rental income is used to pay for the ongoing costs that come with owning an investment property, such as mortgage repayments, agency fees and maintenance. Properties with higher returns obviously contribute more towards these costs, leaving you less out-of-pocket.
When greater cash flow is on offer, it’s no surprise that smart investors are always looking for ways to make their properties more desirable to tenants so the property can command a higher rent. Even if your property is in great condition or would be considered premium, there are always strategies to increase your chances of a higher rental return.
How To Increase Your Chances Of A High Rental Return
There are some common strategies to increase your rental return, but knowing which ones are right for your property often requires specialised knowledge. An experienced property manager is a wonderful resource in this process, as they can recommend the right approach for your needs. At Taylors, we have a team of property management specialists who can help you.
One suggestion your property manager might make to boost your return is renovating, as it’s one of the key ways to increase your chances of a higher rental return. Depending on the condition of your property, renovations can range from full kitchen and bathroom upgrades to smaller details like a new dishwasher or air conditioning. The aim is to increase the desirability of your property by adding features that are highly sought-after, bringing in more rent from tenants happy to pay more for comfort and convenience.
Increasing rent payments and reducing vacancy rates are also important considerations in boosting your rental returns. A property management specialist will know how much rent you can ask for your property, as well as strategies for quickly attracting and retaining great tenants.
Why You Should Use A Specialist To Increase Rental Returns
There are a lot of questions to consider when identifying how to increase your rental yield and it can be difficult to know what’s right for your property. Engaging a highly trained, experienced property management specialist is invaluable in finding the right solutions, as well as saving you time and money from unnecessary works.
A great property manager knows the local area and the market inside out, so they’re experts in how to increase rental returns in properties just like yours. They know what tenants are willing to pay more for, which renovations will add the most value and when to increase the rent and by how much. They’re a central point of knowledge that you can trust to give your investment the best chance of success.
At Taylors, we also prioritise communicative relationships and proactive maintenance, so you have happy tenants that want to stay long-term. For premium properties, we also offer a complimentary evaluation of your property, with recommendations on how to increase your chances of a high rental return.
To find out more about increasing your rental returns or to discuss an evaluation of your investment, contact our team of specialists today.