With Interest Rates On The Rise, Get Wise And Stay Ahead Of The Rest!!

Take Steps To Ensure You Are Getting The Best Yields From Your Property.

Get Your Rent Reviewed

You shouldn’t need to keep an eye on the market to see where your property’s rental value sits, but the unfortunate reality is that most Property Managers are not pro-active enough to ensure you are getting the BEST yields from your property.

Tip:

Make sure you have a pro-active Property Manager and ensure you are getting regular ‘rent reviews’. For example, review your rent generally every 12mths but occasionally 6mthly, depending on the buoyancy in that particular area.  If your Property Manager is good, they will be able to advise you and keep you on track.

Trap:

Keep in mind that rents cannot be increased inside a ‘fixed term’ lease period.  Don’t get greedy over a few dollars though! You can easily shoot yourself in the foot and end up with higher vacancy if you lose a tenant by being too greedy!! It’s all a balancing act.

Be The Best Of The Bunch

Price your property carefully – present it well, make sure it’s IMMACULATELY CLEAN and well maintained.  These small things will ensure your property is the ‘best of the bunch’ and will help you achieve a premium rental price.  Remember, you only need ONE good application!  

Tip: 

We all know that tenants are supposed to return the property to you in the same condition in which it was handed to them, but by law, they only need to ensure that it’s 'reasonable'.  Damage is one thing but ‘fair wear & tear’ is a part of being in the business of owning investment properties.  Property Managers can only do so much, so be prepared to put in some ‘elbow grease’ after each tenancy to make your property SPARKLE.

Trap:

Don’t get too carried away with the garden!  Keep it simple, low-maintenance and almost totally drought resistant.  Tenants will rarely look after a garden the way you want them to.  Make it easy for the tenants so that you won’t be disappointed, or, include garden maintenance in the rent & install a water tank.

Short Term Leases and/or Fully Furnished

Short term rentals can be a great way to get maximum dollars for your property.  Sometimes offered at a premium price for ‘furnished’ or ‘un-furnished’, there is a great market in certain areas.

Tip:

Do your research!  Don’t rush out and take this option unless you’ve done your homework and you KNOW that there is a market for it.

Trap:

Agents fees for management can be hefty on fully-furnished properties because the inventory can be so time consuming. Vacancy can also be higher, as can costs such as cleaning & maintenance.

Long Term Leases

Long lease terms can be a great option for investors because you can be assured to pay less in re-letting costs to agents and vacancy periods are kept to a minimum.

Tip:

Arrange to have an in-built and pre-negotiated rent increase at 6 or 12 month intervals.  Depending on the market in your area, it can be around 4 – 10%.

Trap:

Don’t lock in a lease term if you are not 100% sure that you will be holding on to the property for that length of time.  As a landlord, it’s not easy to get back in to your property when it’s tenanted.  Life & circumstances can change in a flash so don’t let the dollar signs cloud your thinking. If you needed to take occupation of the property for personal reasons or due to a change in circumstances, you could find yourself in strife.

Think Green

As times are changing, so are the needs of today’s discerning tenants. Many are becoming environmentally conscious and more tenants will begin to demand ‘water-saving’ appliances, water tanks, water saving shower heads and energy efficient homes.   It’s quite possible that people will begin to pay a premium for these features. It’s been talked about & predicted that in the future, properties “for lease” will be given ratings relating to their energy efficiency.

Tip:

Next time you’ve got the plumber attending, grab yourself a ‘water saving’ showerhead and have your plumber install it.  Many councils & Water Authorities are now handing them out for free!  If you want your garden watered, think about supplying a water tank. Start doing some research on ways to make a positive environmental difference.

Trap:

Think before you buy or renovate. In general, gas heating & cooktops are more sought after than electrical, so make sure you consider these small but important factors before you make your move.

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