If you can manage to keep your annual expenses to an absolute minimum, then you are all but guaranteeing yourself an increase rental return on your investment property. Therefore, your Net Rental Yield will be a lot more favourable. Calibre’s Business Development Manager, Emily Williams, shared with us her top tips for cost cutting ways to get a increase rental return on your investment property. “There are a few key areas that are important to point out. They identify that even the small things can make a big difference. By paying particular focus on these areas, you can ensure your property investment is a lot more fruitful.
Here are Emily’s Top 5 Tips To Increase Rental Return On Your Investment Property:
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1.Charge tenants for full water consumption by making your property water compliant
According to the Residential Tenancies Authority (RTA), Tenants can only be charged for water consumption if:
- the property is individually metered (or water is delivered by vehicle), and
- the property is water efficient, and
- the tenancy agreement states the tenant must pay for water consumption
The property owner must pay all fixed charges. The tenant cannot be charged more than the billable amount.
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2.Picture Perfect Presentation
It’s important to make sure your property presents at its best both inside and out. This will help to give you the best odds at securing good, long term tenants occupying your property. Improving the street appeal of your home doesn’t have to cost an arm & a leg. There are a few key things you can do to really jazz up the external appearance of your property. (See our article about how to improve the street appeal of your property here). As for inside the home, whether you are looking to style your home for sale or just want to update the look of your home, there are a few simple tips to create a beautifully presented home that anyone would love to live in: see our 5 simple tips here.
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3.A Fresh Coat of Paint Using a Neutral Colour Palette
The style of your home can often dictate the overall look and but the key to making it all flow is to create a neutral paint colour to use throughout your home. A consistent colour palette will make each room feel like it’s connected to the next and will give your home a ‘finished’ look. Fresh paint can make a world of difference to how your property presents to potential tenants. A well presented property will be more appealing to longer term tenants. The happier you can keep your tenants, the less vacancy periods for your property. The shorter the vacancy periods, the greater the increase rental return.
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4.Have a Maintenance Plan for the Property
Ensuring your property is well maintained will not only help to ensure you & your tenants are happy, it ensures your property is kept in top shape. Perhaps it’s worthwhile considering including professional landscaping & maintenance as part of the tenancy agreement. Either way, regular & detailed property inspections are vital in order to ensure your tenants are looking after your investment. Good maintenance of your property will not only ensure shorter vacancy periods in the short term but it will also assist in the longer term value of your property when it does come time to sell.
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5.Set Out Clear Investment Goals Before Buying the Property
When purchasing real estate, knowledge is key. To secure good return on investment, you need to have a thorough understanding of the market. This is essential in order to make intelligent and profitable business decisions. Click here for access to our thorough 6 Step Property Investing process, this will help you ensure you are making sound and lucrative investment decisions.
0411 582 871
emily.williams@www.calibrerealestate.com.au
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