Ensuring you purchase a property in an area where high rental yields are possible is paramount. Don’t fall for buying a property just because it looks nice & new.
Make sure the area isn’t over stocked, research rental prices in the area and see what else is out there. Seek out areas with public transport, shopping, infrastructure and attractions that will make tenants want to apply and pay good rent.
- Freshen Up
A simple refresh every 5-8 years goes a long way to ensure you have a smooth sailing investment property.
Don’t let your property deteriorate with age. Give it a fresh coat of paint, replace carpets and change the blinds before they fall apart.
Your property manager should prompt you to do a makeover as they become necessary however, you are the owner and you should take primary responsibility to keep your property looking its very best.
- Little Things
Tenants appreciate extra comfort. Simple updates like fitting air-conditioning and heating, upgrading lights to LED energy savers or installing a dishwasher can boost your yield by hundreds of dollars per year. Tenants are also more likely to stay longer if they’re comfortable
Rejecting every application with a pet is the easy thing to do, yes. But think about the quality tenants you’re turning away. Pet owners are often willing to pay extra if their pet is allowed, and will more than likely stay for a longer period. As long as you have appropriate clauses in you tenancy agreement that protect your property, carpet and walls, why not say yes?
- Chose an Agent
You get what you pay for! If an agent is willing to cut their commission just to get your business, ask yourself what benefits you’re losing by hiring cheap agents.
A professional agent has so much work happening behind the scenes to minimize your vacancy, coordinate tenants and repairs, marketing, inspections & condition reports, adhering to legislation, rent increases, attending tribunal and so on.
The truth is there are hundreds of agencies out there offering cheap services. A property is the most expensive asset you’ll ever purchase, it’s your choice to whom you entrust it to.
Image credit to: Vladislav Babienko