Three Ways To Help Maximise The Performance Of Your Rental Property
Updated: Feb 6
The most important factor that can significantly affect rental yields is property prices. Rental yields and property prices are inversely related which means that rental yields go down when property prices go up, and vice versa. Other factors that have a significant effect on rental yields include location, infrastructure, interest rates, schools, job availability, first home owner’s grants, and seasonal weather.
Here are some tips to consider if you are looking to maximise the performance of your rental property in the Baldivis area of Western Australia:
1. Find Out What Other Renters in the Area are Attracted to
A good property manager can be a great source of information regarding pertinent factors that drive tenant demand for comparable properties in the local market and boost your property’s rental appeal. For example, do features like built-in air conditioning units or lock-up garages constitute a premium that tenants expect from rental properties in the area?
2. Enhance the Appeal
Renovating or simply sprucing up the property will immediately improve the rentability of your property. Making proactive improvements well before the property starts showing signs of wear and tear will ensure that you attract quality tenants. It will also attract tenants with a long-term view rather than interim accommodation. Retaining tenants will avoid the costs of remarketing and replacing tenants. In the long run, this could turn out to be just as important when it comes to achieving the best possible returns and maximising cash flow.
3. Get a New Rental Manager
The crucial role of a good property manager in maximising the performance of your rental property cannot be underestimated. In addition to handling tenant relationships and managing the ongoing maintenance of properties, the right property manager can make strategic recommendations to ensure your property is aligned with market demand. Some of the invaluable assets of a good property manager include understanding the local market and needs of tenants, identifying opportunities that can add value and enhance the performance of your property, and recommending advantageous clauses to the rental agreement that will maximise your rental returns.
It is important to first perform a financial analysis of your investment to determine exactly how your property is currently performing in the market and how it is likely to do in the future. From there you can decide which of the tips suggested above can help transform an under-performing property that hasn’t increased in value or performed as well as expected.
If you are looking to lease your property or need a good property manager, Advantas Property - Real Estate Agent in Baldivis can help you find the best solution. Contact us or find out more about us on our website at advantasproperty.com.au