Boosting rental returns the key for investors
With rental listings on the rise in the Perth real estate market, it’s critical that you find ways to increase the returns on your rental property.
Chief Executive Officer of Professionals Western Australia, Shane Kempton, said the ‘slow-down’ in the growth of rental returns had been one of the most significant property market trends across the nation.
“With rental yields now under pressure, boosting rental returns is now a key issue for owners of rental properties,” Mr Kempton.
Increasing your rental returns
There are a number of ways you can help increase your rental return if you own a rental property.
Mr Kempton recommends owners consider the security of their property.
“We have found that rental properties with a high level of security are now much easier to lease and tend to have a higher rental return.
“Rental property owners should ensure that, for example, their property has security doors and window locks. It also might be attractive to renters to install a garage door if the property has a carport,” Mr Kempton said.
Comfort and convenience are also in demand, with features like airconditioning and dishwashers in increasing demand among tenants.
“Reverse cycle airconditioning systems are the most popular with tenants because they allow for temperature control during both the summer and winter months,” Mr Kempton said.
Mr Kempton also ranks the appearance of your rental property as a key factor in boosting your rental returns.
“Your rental property should be well maintained. For example, if you own a suburban property with a garden, it is a good idea to ensure you have a gardener contracted to maintain the outdoor areas.
“These expenses can be built into the rent and engaging a contractor to maintain the gardens ensures that they are always maintained. Rental properties with poorly maintained gardens are more difficult to lease and achieve a lower rent compared to similar properties with well-maintained gardens,” Mr Kempton said.
Another factor to consider when trying to increase your rental return is opening your home up to tenants who own pets.
“Pet owners will generally pay a higher rent to secure a rental property and the landlord can request a pet bond from the tenant to cover expenses for any damage,” he said.