There are many creative ways landlords can boost their rental yield. With small improvements you can make your property more suitable for the rental market and you’ll quickly find tenants are willing to pay more for a property that really meets their needs.
Here are our 10 top ways you can justify rental increases on your property — all you’ll need is a hands-on approach and a bit of resourcefulness.
Stay on top of property maintenance
Regular maintenance saves you money in the long run because you won’t have to shell out to fix big issues. Good tenants will expect and appreciate regular upkeep and be happier with their lease if they know you and your property manager have got things covered.
If it suits your property, furnishing can attract more tenants and the chance to increase the rental rate. Consider who your target tenant is — if you’re looking at short-termers, students and young people and your property is in a central or metropolitan location, furnishing could be the way to go. At a minimum, you should include white goods, couches, a dining table, chairs and a TV in the living space plus beds and wardrobes in the bedrooms.
Make small interior improvements
Small improvements around the house don’t have to cost a lot but can definitely boost your property’s desirability. Freshen up the kitchen with new cupboard doors, handles and worktops and make sure white goods and appliances are functional and modern. Clean all curtains and carpets professionally and don’t underestimate the power of a lick of paint.
Tenants, like everyone, want to be kept warm. It goes without saying that your property will be more attractive and gain a higher rental yield if you have good heating and insulation. Central heating will bring the most marked increase in returns while heat pumps and wood burners are also good options.
Get outdoors in shape
Any outdoor space will add value to your rental but keep in mind that most tenants are looking for a garden that doesn’t need lots of care and attention. Low maintenance courtyards, balconies or patios are excellent in rentals. Off-road parking is a great way to turn an unused front garden into yield while outdoor storage and security measures can also increase returns.
Think about families
If your property’s location and style is suited to family living, run with it to maximise your returns. Create a space outside for kids to play, turn the home office into a playroom and add a bath. Offer the rental long-term and consider allowing your tenants to paint and decorate in the kids’ rooms.
More and more tenants are becoming environmentally conscious and looking for green homes that will keep the bills down. Add a programmable thermostat and look at installing energy efficient appliances and even solar panels. Eco-friendliness and low bills usually equate to a higher rental yield.
Tenants often come across a no-pets rule so they’re usually willing to pay more if they can bring their furry friends with them. If you decide to accept pets, kit the property out with animal essentials like a fully fenced garden, cat or dog doors and a small lawn area.
Make renovations if needed
Always consider the cost versus returns but large-scale renovations can do wonders for your rental yield. Whether you’re adding an extra bedroom or bathroom, opening up the living spaces or replacing flooring and windows, the value will show and you’ll reap the rewards.
Create more storage
Loads of storage space is attractive to anyone so finding clever ways to add storage is always going to work in your favour. Can you insert built-in wardrobes or add shelves or cupboards to unused areas in the hallway or under the stairs? Do you have room for a garage or garden shed? Hooks and shoe shelves are easy, no-hassle ways to create more storage space.
If your objective is to increase your rental yield, Harcourts Property Management can help. We provide ongoing and in-depth advice into your property and the state of the market, meaning you never miss a chance to generate greater returns and improve your capital gain.
Get in touch if you’d like to improve your investment success in Dunedin, Queenstown, Wanaka, Cromwell, Alexandra or Balclutha — we’d love to bring all our expertise to the table to help you achieve your property investment goals.