How Rental Value Of A Property Be Maximised

To maximize rental value, one of the most important ways is to make sure your real property is in excellent condition. Not only does this mean that you make more money, but the long term costs of fixing up a poorly maintained property is higher compared to one that has been well maintained.

So what can you do? Here are a few suggestions:

• A new paint job
• Upgrade kitchens and bathrooms
• Add a new room/space
• Know your tenants
• Offer ‘added extras’

1. A new paint job to increase your unit value

These days tenants are not just looking for temporary accommodation. They are also looking for a place they can call home for at least 2 years.

As such, rental property that has been given a new coat of paint automatically looks more welcoming. Moreover, it gives the impression that the property is well maintained.

2. Upgrade kitchens and bathrooms

Take notice of an impressive-looking bathroom the next time you are in a nice hotel. Compare that to the bathroom at your own investment property.

Is the difference staggering? Then it’s time to update your kitchen and bathroom! Invest some additional costs so that even older properties can compete with newer developments.

3. Add a new room / space

The best way to increase your rental revenue?

3 bedroom properties can obviously fetch a higher rental income than a 2 bedroom, so if it is possible to renovate your property and include one more room, it is worth considering. Not only can it raise the rental rate, but it can also boost the overall property value in the long run.

4. Know your tenant

One of the first things landlords need to understand is the type of tenants who would be attracted to their type of current market trend of rental property and location. If it is in the vicinity of a college or university, properties with lower rent price may be suitable for students.

Therefore, it would be smart to market such properties as being close to public transport as that is the primary mode of transport for students.

 

5. Offer ‘added extras’ for the rental revenue

Many people assume that tenants are renting because they are on a budget, however, in some areas, renting can actually be cheaper than buying.

If as a landlord you have access to a premium tenant market, it may be possible to secure more rent by providing higher than furnishings with state of the art appliances, décor and security systems for the market trends.

Do check if this investment will deliver enough additional rent to cover the higher costs and that premium tenant will rent your property type in the area it’s located.

These are just some suggestions for how to maximize rental rate, do you have any suggestions? Let us know in the comments below!