10 TIPS TO MAXIMISE YOUR RENTAL RETURN

Rental properties, like all investments, are not things to be filed away and forgotten. For most people, a rental property represents a significant proportion of their financial stability, and therefore is an asset that needs regular attention.
While there are hundreds of ways to ensure a higher return on your property, some are more efficient and cost-effective than others. We’ve put together a short list of the types of improvements that are simple and fast, and offer the biggest bang-for-buck when it comes to increasing your rental return.

Increase the rent

Whoa, not so fast! First, you or your agent should be conducting regular rental reviews, where the
rental amount you are receiving is compared to similar properties in your area.
When regular reviews aren’t carried out, rental returns can very quickly slip behind market value in
booming areas (such as what is happening right now on the Gold Coast). This means less money in
your pocket, and a much harder time in keeping tenants when you eventually hike up the rent by
what may be a substantial amount.

Remove the darkness

Dark, stuffy rooms can leave rental seekers with a less than ideal impression of your property. But
the best thing about this problem is that it’s an easy one to fix.
Consider new (and brighter) bulbs, contemporary light fittings, and updated window coverings (no
more heavy curtains!). Another sneaky trick is cutting back gardens or shrubs that are stopping light
from entering windows.

Clean and tidy

Rental properties have a habit of becoming a little shabby and unkept over time (not yours, of
course). It’s a big turn-off for renters, but there are easy ways to get around it.
Fresh paint is a great investment, just as finger-marked walls are a big no-no. Also, give the gardens
a tidy, fix any broken or loose handles (think drawers and doors) and get rid of stained carpet. The
general rule is if it looks a bit gross, then it’s gotta go!

Storage

A little boring, I know, but not to be overlooked. Not all renters abide by the concept of minimalism,
meaning they are often lugging around a fair bit of stuff that needs to be put somewhere.
Adding storage isn’t scary. There are now tonnes of simple and affordable storage solutions, such as
those offered by Bunnings and Ikea, that do the job and look pretty attractive too.

Street appeal

Yep, you’ve heard it before but it’s always worth remembering – first impressions count. What every
prospective tenant first sees as they arrive to view your property will influence what they think is a
reasonable price to pay for it.
Mow the lawns, weed the gardens, sweep outdoor areas, clean the windows, fix anything that’s
broken, etc. Rather than simply improving what you already have, consider adding to the street
appeal with plant boxes, clean doormats and a new letterbox.

Smart upgrades

Minimum investment, maximum impact. That’s the goal when upgrading parts of the property. Take
the bathroom for example. Rather than major improvements, think of smaller fixes like new shower
curtains, a fresh coat of tile paint, and new handles and fixtures.
The same goes for the kitchen. New cupboard doors alone can transform a kitchen, as can some new
appliances which, although not always cheap, are a standout feature that people will pay a little
more for.

Build a relationship with your tenant

Establishing and maintaining a fair and positive relationship with your tenant can save you a lot of
money in the long run. Good tenants take care of properties, and will often forgive small repairs, or
even carry out minor improvements themselves.
If you have a good relationship with a tenant, it will go a long way when working out any issues,
disputes or problems that may arise between parties. In fact, good relationships may avoid them all
together.

Maintain the property

When things break, fix them. When your property is due for a paint, paint it. When the gardens
become out of control, send in a gardener.
Neglecting these simple issues usually means spending more money down the track when you
REALLY need to address them. It will also frustrate tenants who deserve some reasonable level of
maintenance.

Avoid an empty property

Your yearly rental return can be badly hurt by having gaps in tenancy. It’s well worth considering
this, particularly when the time comes to increase the rent.
For example, increasing the rent by $10.00 per week will only add $520 to your yearly return. In
some situations, that may not be worth it if that means forcing a good tenant out. Remember,
changes in tenancy cost you money, as does an empty house.
Call us if you’d like to increase your rental return

We understand the needs of owners, as well as those of tenants. Which is why more and more Gold
Coast property owners are turning to us to manage their investments.
Get in touch with us to find out what we can offer you.