Tips to Maximize Your Rental Returns

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Tips to Maximize Your Rental Returns
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Investment properties bring rental returns but do
you know that the appearance of your investment
property shares a direct relation with the
income you will receive. Also, the presentation
of the property has a clear connection with the
tenants it will attract? First impression is the
last one. This holds true for properties too. If
you are someone who has investment property and
are seeking maximum returns, then you would
never want to miss out on making a great opening
impression. You never know, this may turn out to
be the decisive factor in determining whether
there will be a second chance or not. So, if you
want to increase returns on your investment
property, the very first thing you will have to
do is look at its appearance. No kidding! Half
of the tenants will be attracted to your property
because of its appearance. Other than this, you
might need more improvements on the property.
Once you do these, you can significantly increase
the amount you want to charge from the
tenants. You must be wondering what type of
improvements you can bring to your property.
Well, there is a fine line between the
improvements that you can bring so that you have
all the rights to increase the rent that too
authentically. You will have to increase the
rental income in a manner that does not leave the
property over-capitalized. So, before you embark
on the journey, make sure you think over it and
then move ahead with the process. How would you
even do it? Through effective and long-term
planning. Anything that concerns the property
matters must be handled with utmost care and
thinking so that you do not end up making
extravagant purchases. Increasing the rental
income is one of the key points in becoming a
smart investor and believe me, it isnt that
difficult or expensive as you may think. So, let
me take you through the steps that are not just
simple but also very effective in bringing a
major difference to the rental income.
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Street Appearance
Have you ever passed by a house and uttered the
words Wao? Or have you ever said, what a
beautiful home! If yes, then, this is exactly you
have to do with your investment property. Make
it appealing, attractive, and praise-worthy so
that the passer-by turns the head and waits for
a second to see how beautiful is the
property. For receiving such admiration, all that
you would need is some time. Yes, you read it
right! Some time to pay attention to what can be
improved without having to affect your
pocket. Just take out time from your hectic
schedule and focus on the front of the house. If
your investment property has a front garden, then
spend some time tidying up the garden beds,
removing weeds, cleaning the paths, painting the
fence, and cleaning the windows and the doors. If
you own the apartment, then perhaps you should
add window boxes, clean the front door and give
it a fresh coat of paint. You can add the front
door mat and make the floor more welcoming. A
good first impression sets renters up for liking
the property and also wanting to pay more for a
place that has been looked after properly.
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Work on the Bathroom
Hygiene is another important factor that must not
be overlooked. People often are ready to pay
more for houses that have clean, hygienic
bathrooms. They are ready to live in houses with
pristine and well-maintained bathrooms. However,
this does not mean that you need to spend hefty
amount on re-doing the bathroom. Suppose, if the
bathroom tiles are broken or even have cracks,
you can spend some on getting new tiles. But if
the tiles are stained, outdated, you certainly do
not need any replacement. Just clean them or you
can even paint over them with tile paint and
give your bathroom a fresh and clean look. Yes,
you can replace old shower curtains, showerheads,
and fixtures, if need be. These are relatively
cheap fixes but make a huge difference. These
will create a cleaner and a modern space for
renters to fall in love with. Practice it and see
the change it brings.
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Makeover of Kitchen
Just like bathroom, Kitchen is the heart of every
home and believe me, renters are happy to pay
more for big, spacious, clean and well-managed
kitchen. Again, you do not have to break the back
to get a renovated kitchen. It is just a common
misconception. A coat of fresh paint can work
wonders in making your kitchen stare worthy. You
can also try and swap the cabinet doors and give
your kitchen an entire new look. If you think
new doors are outside your budget, you can just
get the handles and knobs of cupboards and
drawers replaced. Just like buyers, renters also
appreciate nice appliances. So, if yours are a
bit messy, have got rust on them, or are even
old-fashioned, consider replacing the dishwasher,
fridge or oven. Having such appliances at home
will benefit you eventually. Even though you
might have to invest at first but remember it is
a long-term investment. The tenants will come
and go but the appliances will be there. So, make
sure the electric and daily use appliances are
functional. Believe me, renters will pay more
for more facilities you provide within the
investment property.
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Street Parking
Everyone needs a space for the security of their
vehicles. If your investment property has a
garage, it will definitely be a bonus, especially
if your rental is in a high-density living area
like in the inner city or in a beachside
suburb. Not just this, the closer your place is
to the city, the more value the parking space
will add to your investment property. Even if you
add a carport or create a driveway, tenants will
be ready to pay more.
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Add Living Spaces
More bedrooms, more will be the rent. If you
cannot add another bedroom, you can get a sunroom
installed. A sunroom enhances real estate value
of home. Besides, it also adds to the aesthetics
of the place. Moreover, sunroom can also be used
as an extra room. Use it for any purpose,
entertainment area, living room, dining room, or
anything that you may want. The option of adding
a sunroom is feasible if the layout of your
property does not allow for an additional
room. If there is space, add an additional room.
Needless to say, it will pay you higher rent.
Add More Storage Tenants love storage. Easy and
cheap additions such as wardrobes in bedrooms
will increase the appeal and also the rental
value. Tenants like the spaces that allow them to
live in the space with enough rooms for their
belongings.
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A Pet-Friendly Property Will Pay More
Pet-friendly properties are highly in demand. The
properties that do not allow pets may have a
great chance of losing potential tenants. People
who love pets would definitely search for
properties that are pet- friendly. After-all,
they would not leave their pets behind and live
without them. This is quite understandable that
pets can be a risk to investors. But if you want
to reap the rewards of increased rent from pet
owners, it is suggested to place some property
safeguards in the contract. Like carpet cleaning
at the expense of the renter or pet-related
damages to be paid by the renter.
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Light Up the House
Darkness will not appeal anyone. With simple
fixes such as cleaning light fittings or
replacing non-functional bulbs with bright
lights, this problem can be fixed. More light
spaces in the house fosters the sense of welcome,
gives positive vibes and also allow for a better
sense of openness and space.
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Raise the Rent

• You can do this through some market research. If
  you find that you are charging rent which is
  below the market standards then the situation is
  in your best interest. Raise it!
• Some investors may feel dubious about raising the
  rent and thats exactly how they end up losing
  potential tenants.
• If the rent is in accordance with the market
  value, then tenants will know that and they will
  not hop to another property knowing the rent will
  be the same.
• So, if you have an investment property, let it be
  managed by the Freedom property managers in
  Melbourne.

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