Easy ways to maximise rental income

Easy ways to maximise rental income

Owning rental property can be a great way to generate income and build long-term wealth, but it’s important to periodically assess your property for potential improvements.
By making strategic upgrades, you can enhance tenant appeal, increase potential rental income, and add capital value.

When inspecting rental properties to buy as a landlord, after ensuring the property is sound the main focus should be looking for properties where potential improvements can be made to increase your rental income and investment property value.

Some common property improvements that landlords can make to entice good tenants include updating the kitchen and bathrooms, installing new flooring or fixtures, and painting but there a lower cost 'dressing' options which go a long way too and save you the cost and stress of structural work.

By taking the time to assess your property and make necessary improvements, you can ensure that your rental is appealing to tenants and generating the maximum return on investment. Here are some ideas.

Know your tenants

The first thing to do is know who your tenant is. This will differ based on where your property location is and what type of property it is.

Each type of tenant is looking for different things from the property. Theres no point doing up a student flat in a student area for an Executive/working professional Renter or a family.

What are your tenants looking for?

Downsizers/Professionals

Low maintenance, clean and tidy property. Furnished or unfurnished. Parking. Location. High spec fittings and finishings.

Students

Low maintenance, sufficient room for a study desk. Fully furnished and in a transport friendly location. More interested in furniture dressings than fittings/fixtures.

Families

Families love a kid and pet friendly property with a garden. Unfurnished for long term tenants. School zone location is key.

Executive

These short term renters expectations are sky high, but so can the rent be. The property should be in hotel condition with top spec appliances and fully furnished down to fine soap, shampoo and conditioner.

Kitchen

As with selling, the kitchen and bathroom are highlights of the property for new tenants.
Depending on your location and property type you don't need to do a lot to entice prospective tenants to your property over others.

A well laid out, clean kitchen is appealing to all tenants.

If budget doesn't stretch to a full new kitchen cupboard set, an inexpensive DIY approach will go far - try a fresh coat of neutral colour paints. Also consider swapping out handles to something modern. If replacing the kitchen bench is too costly, consider resurfacing paint which can also be used in bathrooms.

Depending on your most likely tenants consider whether new appliances such as a dishwasher are required. A stainless steel finish always seems higher end and appeals to more people.

Again, if this is not in your budget, there are options to upgrade the look of your appliances like stick on stainless steel coating, or having the display/buttons/dials replaced.

Bathrooms

Bathrooms are a more difficult area to update or renovate due to existing plumbing layout, but again there are levels of renovation that you can undertake to make the property more appealing to more people.

Consider working in stages to replace flooring, existing shower unit, tapware, sink and cabinets, toilet, towel rails, paint or wallpaper etc. The options today start as low as $500 for a new shower unit.

Changes you may be able to make yourself are swapping out or installing a new mirror, and or storage display.

Whatever you can manage to update is sure to please potential tenants and help you raise rental yield.

The rest of the house is easier, particularly if not furnished. It simply needs to be a in clean, decent condition.
Any chipped tiles or peeling paints should be replaced/fixed up. Carpets should be clean, not have a smell to them and no bare/worn through patches.
A good professional clean can revitalise existing carpet on its last legs to get it through another tenancy before replacing is required.
Window coverings should be clean and tidy. Any mouldy curtains should be washed or replaced if washing cannot save them. Curtains can be costly, look into your options such as roller blinds which can be a cheaper alternative.
Making the property pet friendly is a great way to secure potential tenants who tend to stay longer. To be 'pet friendly' the property needs good fencing right around.

Where possible, parking is always also a pro for any prospective tenants. Consider putting gravel or concrete down to make a parking space if one does not exist.

If you are really looking to increase your rental property value, adding an extra bedroom is a sure way to increase your rental income and property value. The additional bedroom should supply sufficient room for a comfortable bed and wardrobe to be worth adding on, or it is just a storage room.

When your property is well presented you will have less vacancy, more rent, better rental yield, higher property value, and more potential renters to choose from.