- March 5, 2013
- Posted by: admin
- Category: Enconomy, Financial goals, Rental Growth, Wealth
As competition hots up in the market, landlords will need to up the ante to compete for tenants. Increasing supply of rental property can leave owners sitting high and dry as tenants pick the eyes out of the market.
Seasoned investors know that the longer property sits vacant, the more stale it gets and the higher the chances that no-one will want to rent it.
You are in it to make money. You want to attract and keep the best possible tenant at the best possible rent, even in the quiet times. Here are 10 simple things an investor can do to maximise rent.
Clean it – not a half-hearted effort. Really clean it – the type of clean you see in homes for sale or luxury hotel rooms. If you can’t do it yourself, there are plenty of services out there and it’s tax-deductible.
Repair it – the biggest priority should be safety. A vacancy provides an ideal time to do a check-up structural integrity, wiring, switches, power points etc. If you are unlucky enough to have a pool, check the fences, gates, pumps etc.
Replace it – maintenance is a balancing act; but if it’s old and worn and especially if competition is high for tenants get rid of it. New carpet might mean a new tenant, and maybe even $20 a week more in rent.
Paint it – there’s not a lot to say here, it’s a magic bullet, just do it.
Promote it – not all agents are going to focus on your property. Make sure your agent has some good photos, and good text, a highlight of your property’s best attributes and why a tenant would want to rent it.
Present it – do what you can. Mow, sweep, weed; let the light in – open the windows, shut them if it’s noisy. If it’s hot, put on the AC. And without trying to sound like an advert for Home Beautiful, throw together a nice bunch of flowers for the kitchen. It’s all about the sell.
Provide it – still having a tough time attracting a tenant? Try providing whitegoods – a decent fridge; and maybe a washer and dryer. This works well in apartment rentals that are favoured by singles.
Furnish it – developers and investors are becoming increasingly savvy about the benefits of providing furniture packages for both sales and rentals. A fully appointed apartment can increase the rentability of your product – especially in areas near universities or those that attract a younger tenant.
Make it family-friendly – if your property suits families, check the fences, make a small lawn if you don’t have one, maybe add a cubby house or a sand pit, and some shade.
Allow pets – Aussies are great pet-owners, and to exclude them from renting your property means you are excluding a large percentage of your potential renter base. You can be lucky most pet owners are responsible folks. Just make sure you put a good pet bond in place.
Remember, tougher times call for creative responses. Passive investors take note.