At Calibre Real Estate we know how important your investment is to you so here we advise on how to make the most of it
Whether you have recently acquired an investment property or have a long-held portfolio, there is always something you can do to increase your profits.
Considering market trends, choosing a great property manager and making changes to the property itself can all play a vital part in making your property work better for you.
A hands-on approach is always going to work better than one which ignores the finer details.
After all, every decision, no matter how big or small, can impact the profitability of your investment.
What are some things you might need to consider?
1. Price the property right
When you are trying to decide how much to charge for your rental, one of the first things to do is look at the competition. You want to focus on rentals that are as similar to yours as possible, considering factors such as:
- Suburb prices
- Number of bedrooms & bathrooms
- Ideal tenant budget
It might be tempting to ask that little bit extra for your rental property but if it is overpriced, you are less likely to secure a tenant.
This will ultimately cost you more over time.
2. Update or renovate
One of the most obvious and generally most effective ways to maximise rents is to work with what you already have.
- Simple and low-cost updates, such as giving the interior a fresh coat of paint, can transform a space significantly and help you toward achieving maximum rental value.
- Bigger renovations, such as renewing the kitchen or bathroom do not have to be an expensive exercise. Depending on what you already have, you can achieve a low-cost facelift by simply updating things like fixtures and fittings or installing new benchtops.
The truth is, if you are wanting to attract (and keep) your perfect tenant, then providing an aesthetically pleasing environment will help massively.
3. Provide useful appliances
You really should consider whether the appliances you are supplying are fit for purpose.
There is no doubt that items such as dishwashers, reverse-cycle air conditioners and alarm systems add value and can help to maximise returns on a rental property.
- A good rule of thumb to apply when considering what appliances to invest in is to think about what your ideal tenant would find most useful. For example, if you are renting out a large family home, then a spacey fridge freezer is going to be essential.
These seemingly pricey items will certainly pay for themselves, and more, in the long run.
4. Be pet friendly
More and more people are renting, which means more and more people need to find rentals homes that allow pets.
Queensland in particular has the most pets per person than any other state across Australia.
Despite this fact, a lot of landlords will still not allow tenants to own pets.
This means, a landlord who is open to permitting animals could attract premium rents because of it.
While there are some obvious downsides to allowing pets into your investment property, it remains a reasonable option that should be considered thoroughly.
5. Consider development
While you might initially think property development is not financially feasible, changes to planning rules and regulations in recent years have made it an attractive option for many.
For example, on a block where you currently have just one dwelling, you might be able to build additional dwellings or even ancillary accommodation.
Utilising the space you own means you could command more rent and potentially increase the value of the property overall.
6. Get insurance
There is no denying that your investment property is a really valuable asset.
That is why it is important to protect it.
Landlord insurance protects you from unreliable tenants, damages and many other unforeseeable circumstances.
While most general home and contents policies cover you for things like building damage and fixtures and fittings, they won’t necessarily protect you for the multitude of other things that could go wrong.
What can landlord insurance cover?
- Loss of rent if the tenant defaults on their payments or leaves early
- Theft or damage by the tenant
- Legal expenses if you take action against a tenant
- Liabilities if you have a claim made against you
While protecting your asset comes at a cost, it will be a worthwhile expense if things do not go according to plan.
As well as providing peace of mind, the landlord insurance premium may even be tax deductible.
7. Hire a great Property Manager
You might think that by managing the property yourself you will cut back on real-estate fees and have more money left in your back pocket.
The reality can be quite the opposite.
In fact, doing it alone can end up costing you a lot more in time, stress and money.
Managing your own rental comes with all of the same pressures as running any standard business and more.
Here are some of the things a property manager can do for you:
- Find & screen tenants
- Arrange viewings
- Collect bond & rental payments
- Carry out regular and thorough property inspections
- Manage ongoing tenant relations
- Adhere to legal regulations
Take a read of our blog on ‘What To Expect From A Property Manager’ for more helpful information.
Calibre Real Estate can help
Our promise is to do more for our clients across Brisbane’s North West than any other agent. How?
- We use tried and tested processes to provide the best service possible
- Our team of property managers look after small portfolios, meaning we can provide landlords a bespoke and personal service
- We know the Residential Tenancies and Rooming Accommodation Act 2008 back to front, so we will keep you compliant
We are passionate about property management and we thrive in the work we do.
If you are on the lookout for an agent in North West Brisbane, you need to look no further.
By the way, if you’re currently with an agency that you’re not happy with – we can do the switch for you. Just ask.
You can reach us on 07 3367 3411.