As bills and costs associated with running an investment property increase, it’s important that as a landlord you take the time to talk to your property manager, review your properties expenses and figure out how you can earn a higher return on your investment. The property management division of Loth Estate Agents has found that just a few simple improvements to a rental property can make the property more attractive to renters and boost weekly rents.
Ever wonder why your neighbor’s apartment is returning a higher rent than yours and it’s exactly the same size? As a landlord you need to make a point of difference between your rental property and other rental properties advertised to be able to command higher rent. Air conditioning, security and a dishwasher are now three features that most prospective tenants demand when looking for their ideal property.
Lifestyle issues are impacting on expectations as potential tenants demand more for their money. The upside is they are willing to pay a higher rent to get it. As a property investor you’re not just investing in bricks and mortar but also the lifestyles of Australians. People who are renting a home now want features that reflect the growing concern about crime in our society. This is why the issue of security is now gaining added importance amongst tenants.
A property which has the above mentioned 3 simple features can often command an additional rent of over $40.00 per week and, equally importantly, is likely to have a lower vacancy rate. For the investor/owner, all of these items will pay for themselves in about two to three years through depreciation and the extra rent.
It is also important to ensure that your property manager regularly inspects the property. A poorly maintained property will be much harder for a property manager to lease in the current market and will be penalized by lower rents. For example, a property with poorly maintained gardens will discourage prospective renters from even viewing the property as it creates the impression that the interior of the house is also poorly maintained and that the landlords are likely to not repair any issues that arise with the property during tenancy.
There are many first time investors in real estate who often have a sad experience and become disheartened because they purchase an investment property which they later find is difficult to rent and therefore achieves a lower than expected return on the money invested. Take the time to find the right property with the right features to ensure your property is rarely vacant and offers a better return on your investment.