It’s no secret that the rental market in some parts of the country is sluggish.
But just because some areas are performing below average it doesn’t mean that investors can’t achieve rental growth.
The truth of the matter is that you can manufacture higher rents no matter what the market is doing.
Don’t believe me?
Well, let’s take a look at four of the strategies to get your tenant to pay more rent.
1. Renovation riches
There are a number of simple renovations that you can undertake to increase your property’s appeal to renters and owner-occupiers alike.
And by completing a few easy renos, you’d be surprised at how much better the property can look – as well as the extra rent you can charge for it, too.
Simple renovations to consider can include:
- Repainting internal walls
- New blinds or curtains
- Improve storage options such as wardrobes
- Install a dishwasher
- New carpet
- Install air-conditioning, especially in hotter climates like Queensland.
Any of these renovations can be completed quite affordably, while also improving your yield at the same time.
2. Allowing pets
Once upon a time, not that long ago, it was extremely difficult for tenants with pets to find a rental property.
That was because landlords were more worried about the potential damage from Spencer the dog or Trixie the cat, than they were about securing a long-term tenant.
Thankfully times are slowly changing.
You see, educated investors know that one of the keys to successful property investment is to invest in the types of dwellings that will be in constant demand.
And they also understand that long-term tenants are fundamental to enjoying a long-term property investment journey.
Tenants with pets are usually grateful for the opportunity to secure a home for the entire household and will often return the favour by paying more rent and staying for longer, too.
And, of course, fewer vacancy periods means more rent.
3. Security matters
Every rental property must have certain security features like door and window locks.
But providing extra things like sensor lighting and security screens can help increase the rent you can charge as well.
Tenants want to feel safe in their homes, so by providing additional security features – either proactively or reactively – your tenant will recognise that you care about their safety.
In return, they are likely to pay more for the property and may well call the property home for a longer period as well.
4. External features
Australia’s tropical climate means we live outdoors more than people in many other countries around the globe.
So, whether it’s a bona fide backyard, a courtyard or a balcony, it’s highly likely that your tenant will spend months soaking up the sun outside.
That’s why it’s so surprising that many landlords often forget about the external spaces.
Overgrown gardens or courtyards festooned with weeds never attracted anyone except creepy-crawlies.
Instead, why not spend a little bit of money tidying up the garden or courtyard – and perhaps pay to have it maintained by a handyman during the tenancy, too.
That way, the tenants can enjoy the outdoors as much as the indoors.
Plus, they will likely pay more rent for the opportunity to regularly spend time in useable and attractive spaces.
Because no one wants to hang out in an unkempt outdoor mess and they certainly won’t pay for the privilege of doing so.
Let’s face it, some rental markets are experiencing softer conditions at present.
Thankfully this is confined geographically as well as being mostly limited to the oversupply of new units in some inner-city locations.
This excess supply will eventually be absorbed, but in the meantime, rental prices are likely to remain flat in many places.
But, owners of investment grade properties, can always improve their yields by investing in the right properties to start off with.
And by also recognising that the power to achieve more rent is in their hands…
If only they’re prepared to spend a little money to make money.
It seems a pretty simple formula to me.