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How to Maximise Rent – when you are Ready to Rent out your New Granny Flat … posted on the 16th June 2014
With an increasing supply of new rental properties hitting the market here in Ipswich (or anywhere for that matter), as Landlords you may need to upt the ante to compete for tenants. Too often I see properties with a For Rent outside the front of the house, often sitting there for 4 weeks or longer. And why ? It looks like a renter …
But a season investor knows that the longer the property sits vacant, the more stale it becomes and the higher the chance no one will want to rent it. With my real estate agents hot on now, the same goes for a house for sale – the longer it sits on the market, the harder it becomes to sell. Everyone says – why hasn’t it sold?
To present a house to market for sale, or a property for rent, you want to attract and keep the best possible tenant with the best possible rent, even if times are tough. We are all in it for the money, so protect your asset well. Here are 9 simple easy things you can do as an investor to maximize your rent return :
- Presentation: first i
mpressions are lasting impressions. As a prospective tenant is driving up to the property, does it make a good first impression? Sweep, weed, edge, mow and blow – not that hard really! Is it dark inside – open up the curtains; is it musty – put in an air freshener or open up the windows; is it hot – put on the air con. It’s not brain drain stuff …
- Promotion: does your property manager highlight your investment property’s best attributes, and say in their write up why a tenant would want to rent it. Would you rent it just on their words in their advertising of it? If the answer is no, then something needs to change – either the words or your property manager. Property managers tend to be overworked, underpaid and often manage 150 properties or more – unfortunately your investment property is not the only one they manage. How often do we see bad photos, dark dingy interiors, photos of the toilet? A property manager is not a photographer – so pay $150 for professional photos and see what a difference it makes to your promotion
Clean it: I mean really clean it, not just a half hearted attempt. If you can’t do it yourself, there are plenty of businesses that will do it for you – all tax deductible. If you wouldn’t want to rent the property yourself because it’s not clean, why should anyone else ?
Repair it: when your investment property becomes vacant, it’s a great time to do a complete service – just as you would with your car. Safety should be your biggest priority – loose power points or switches, dodgy pool fences. Don’t leave it until it’s too late
- Replace it: old and worn – get rid of it. Don’t wait for an accident to happen. Yes, I know you only replaced the carpet 5 years ago and your carpet at home is 10 years old. New carpet might mean a new tenant, maybe even more rent. Dirty, old carpet attracts the same sort of tenant
- Paint it: not a lot to say really, bite the bullet, just do it. On average, an investment property should be paint every 3 – 5 years
- Furniture: developers and investors alike are becoming increasingly savvy – furniture packages particularly in units or apartments are becoming the norm. We have a University and large Hospital here in Ipswich – younger tenants, especially those fresh out of home often will look for a property that is furnished. It may not be for all properties, but young single tenants often like fridge, washing machine & dryer. Just be prepared to think outside the square
- Family Friendly: how are the fences, is it fully fenced to keep their family dog in?
- Pet Friendly: this is a biggie! Exclude pets and you reduce your potential tenant pool by about half. And most pet owners are responsible, reasonable people – just make sure there is a good pet bond in place and you have fumigation written into your lease on exit.
When times are tough, you may need to get creative – it could be the difference between having your investment property rented before anyone else’s. So Passive Investors – Take Note of the above …
Written by Sonia Woolley