Being a successful landlord entails making sure you’re making a substantial rental yield from all of your property. Having a high renal return is necessary for covering mortgage costs, taking care of repairs, upgrades, and maintenance costs, and is the only form of profits you make, so they need to be enough to support you.
There are a number of ways to increase your rental return, from making sure your tenants are happy to working with the best real estate agents Carlingford. The more ideas you have to work with, the more likely you are to experience a significant increase in your rental yield. Here are some tips to maximise your rental return and become a flourishing landlord.
1. Keep Your Tenants Up to Date
Regardless of whether your monthly costs on maintaining your property are increasing, you can’t just raise the rent whenever you want. You should ideally have proper paperwork and records that help support your decision to increase the rent. Additionally, if your tenants can see the work you’ve put into the property, they’ll be less opposed to paying higher rents.
Despite this, you should make sure your tenants have a fair amount of time to adjust to the raised rent. Give them a minimum of two months before you actually increase your rent, and don’t forget to abide by all the agreements in the lease as well. Many leases state that you can’t change the rent before a certain amount of time has elapsed, in which case your tenants could complain.
2. Think About Location
If you’re only just thinking of venturing into the property business, take a step back and make sure you’re sure about where your property is located. Location plays a huge role in the amount of rent you get, so if you can afford it, go for a neighbourhood that’s safe, reputable, and near public facilities and offices, etc.
This will not only ensure that you can successfully have higher rent for the property—it will also ensure that the tenants you have are more likely to stay for a longer time period, which brings us to our next point.
3. Work with Experienced Real Estate Agents
An experienced real estate agent knows how to filter out potential tenants. They know how to determine whether a potential tenant is interested in renting your property for the long-run, or if they’re only interested in a short stay.
The more long-term your tenants are, the more stable your rent return is. If you’re constantly renting out your property to tenants that leave after a couple of months, your property will spend months vacant and on the market for rent, which can increase the losses you incur.
You can do this by hiring a qualified real estate agent, and also making sure you have an idea of your tenants’ plans for occupying your property. Have they stated that they’re only here until they make a move to another state? Additionally, the more facilities and appeal your property has could influence how long an individual or a family would prefer staying, which is why you need to regularly check up on the condition.
4. Upgrade Your Residential Rental Property
If you want tenants to be willing to pay more rent, you have to guarantee that their experience on your residential rental property is worth the money. You can improve and upgrade the property in several different ways, by installing effective insulation that lowers the chances of energy loss or fix up the facilities as well.
Fixing up facilities means adding more attractions that’ll make life easier for your potential tenants. This means making sure your property is equipped with a dishwasher, a high-quality oven, air conditioning, and even Wi-Fi. The more facilities you provide, the more your tenants save on making additional purchase, which adds appeal to your rental property.
5. Work with Reliable People for Maintenance
Did you know you could be losing extravagant amounts of money on working with inefficient people for repairs and maintenance? Working with inexperienced plumbers and electricians could mean that you will have to spend more money on fixing an issue that could have been avoided entirely.
Many plumbers might fix an issue temporarily, only to have it re-emerge sooner or later. Not only does the cost of this persistent repair keep adding dents to your wallet, but it’s also a poor experience for your tenants.
6. Does Your Residential Rental Property Need a Renovation?
No one wants to shift into a house that looks like it hasn’t been renovated for the past 20 years. If you want tenants that readily agree to pay higher rents and stay on your property for years at a time, you need to take the condition of your property into account.
You could change out old tiled flooring for hardwood floors, and install newer, fancier taps, doorknobs, and light switches. Trade out ancient carpets for plusher, newer ones in all the bedrooms, and get energy efficient window frames. These upgrades aren’t just about looks, but they also help you save on costs such as high electricity bills from poor insulation and plumbing costs from dripping taps.
Another factor to take into account is whether your property has space for additional rooms and add-ons. For example, if there’s a parking space but no garage, you could consider having one made. If there’s a possibility of adding a guest room, or an extra bath, you should think about investing in those as well.
These help make your property more appealing for larger families, or those looking for more space. With a garage, families also feel safer parking their car and get access to more storage room for keeping their belongings.
Hopefully, these tips will help you get started on working your way towards becoming a successful landlord. Remember, when people can see the quality of your property and the facilities you provide, it’s easier for them to agree on higher rent. Keep reviewing your rent regularly, especially when one tenant moves out, to make sure you’re offering market-competitive rent that isn’t excessively high or too low.
Andrew Magro is Licensee at Harcourts Carlingford, a well-known real estate agency offering a full range of real estate services, specialising in rental, commercial, residential properties and property management services. Andrew has worked in the real estate industry for 16 years, which has given him a thorough knowledge of the Carlingford and Greater Hills areas.