6 ways to boost your rental income

You buy an investment property with your long-term financial security in mind. For this reason, it is important to ensure you collect a rental income that will help you to achieve your goals.

The more money your tenants pay, the more capital gains you achieve. However, there needs to be some give and take. Your tenants want to live in a quality home if they are going to pay a premium price.

The changeover period between tenants is the ideal time to review your investment property and look for ways to improve its appeal. Read on for 6 easy ways to increase your rental’s profitability, and some tips to help you keep it in good condition so it maintains its value.

Make life easy and comfortable

While Sydney enjoys a relatively mild climate, we still experience hot days in summer and some surprisingly cold ones in winter. Installing an air conditioner will add to the appeal of your investment property. Most tenants want this feature and are willing to pay for it. Ceilings fans are less expensive but also work well to make a property more comfortable in summer.

A working dishwasher is another feature that many tenants will appreciate, particularly in slightly larger apartments. And with so many working from home these days, a powerpoint upgrade might also be worth the investment. You can either add new powerpoints in strategic places or replace existing ones to allow for USB ports, which makes charging phones much easier.

Spruce things up

Fresh paint is one of the most cost-effective ways to make a lived-in apartment or house look clean and new. Hire some professional painters to get the job done quickly and efficiently, and use neutral colours to appeal to a wider market.

Carpets are a slightly more expensive investment but they can help make a tired property look like a luxury home. Again, keep things simple and look for a carpet that is easy to clean and won’t quickly show signs of wear and tear.

Other features like tapware, light fittings and cabinet doors are also inexpensive ways to give your property a facelift between tenants.

You may decide to do more extensive works. Experienced real estate agents will remind you that kitchens and bathrooms sell homes, but they are equally important when it comes to finding tenants. You don’t have to spend a fortune here, however, it may be worth spending a little more for quality and durability rather than installing a cheap flat-pack kitchen. In the bathroom, replacing the toilet and installing new shower screens, or spraying outdated tiles to give a more modern colour, will add a fresh look and feel.

Fix what’s broken

Creaky floorboards, doors that don’t shut properly and dripping taps all put people off.

As property managers, we always keep an eye on what needs to be repaired in a property. We discuss this without clients and can organise tradespeople before we advertise for new tenants.

As a rental property provider, you also have certain legal obligations. Your investment property needs to have a working fire alarm and you may also be obliged to make sure there are locks on the windows. Again, we will always tell our clients what they need to do here.

Invest in styling and photography

An empty property in the ‘for lease’ section of a website doesn’t stand out and can actually look smaller rather than bigger. One option is to invest in ‘virtual staging’, which uses photo editing software to make it look as though the property is furnished.

For all of our properties we will arrange for professional photos to be taken, so that the listing attracts as many potential tenants as possible.

Check your eligibility for tax deductions

Some rental property owners request a depreciation schedule, which can be used to help claim tax deductions on the cost of owning the property.

There is an investment of several hundred dollars, but this should pay for itself in the tax you get back, and you can use it for several years. Your accountant will also know about the property upgrade expenses you can claim as tax deductions, sometimes over a few years.

Stay on top of maintenance

When you’ve found the right tenants, look after them. Make sure they are getting value for money by ensuring your investment is in good condition. We will always arrange for regular maintenance for the properties we look after, which is a double win because it will keep your tenants happy while also ensuring your property doesn’t lose value.

At Home Property Agents, we have a wealth of knowledge when it comes to increasing the profitability of rental properties and finding the perfect tenants. Contact us to find out more.