Top tips on increasing your rental income

So you’re the proud owner of a rental property, that’s great! But you might be wondering how you can maximise on all that potential income you could be receiving. Below are some of the top tips on how you can make sure you’re making the most out of your investment:

Functional and appeal based improvements

Although it might be tempting to leave your property alone and watch the numbers in your bank account increase, it’s a good idea to carry out strategic improvements every so often. Keeping a close eye on higher quality finishes on similarly structured dwellings allows in the same area allows you to tactically figure out the small differences you can make to not only increase the value but rental returns too. When spending money on your improvements add the costs to your original purchase price so you can also work out your ‘new & improved rental yields’.

Shop around for property managers

Using property managers can be expensive, so it’s important you find the best deal for you. Take the time to really investigate what agencies are offering and consider different options. This increases your net return and can give you a better ability to predict your finances. However, a good property manager is worth their weight in gold and something to think about which can easily outweigh a reduced fee.

Think about ‘net rent’ (after expenses)

When looking at your rental returns it is easy to get lost in the amount coming in, rather than what is going out. With variable expenses like property management, insurances, maintenance, and interest rates a review should be done to increase net rents. Speaking to your broker, reviewing your insurances etc.. can help increase your net rent. Having a formal review bi-annually is suggested.

Reduce or increase your rent

Reducing your rent to earn more money seems counterintuitive, but if you’re overcharging then your property is likely to be empty for longer periods of time. Equally, if you’re undercharging, you could be losing out on money you have the right to ask for. Review other properties in the area and compare them with your own based on a range of factors like the size and condition of the premises. Be wary of increasing the rent too much as long lasting tenant relationships may fall over.

We are Australias leading buyers agency in helping you find positive cashflow residential and commercial property with an upside for capital growth. Get in touch with our team at InvestorKit for more information on making the most of your investment properties.