Nothing is as frustrating as owning a rental property that doesn’t generate income. Income is the foundation of any profitable investment and can help you to increase your net worth. You should not be spending money on a property that ought to be making you money. As the saying goes, “Fortune favours the bold.” Offer something different to your tenants and watch the money start to roll in. Here’s how to boost rental yield.
Find a Good Property Manager
If you want your investment to be managed properly, finding a good property manager is of utmost importance. A bad one can cost you dearly, whether through poor tenant selection, failure to collect / pass on rent or not identifying and remedying damage to your property. Look for a property manager who is experienced, trustworthy, and organized. Make sure they are licensed and seek recommendations from other investors. A good property manager will help you price your property appropriately and secure quality tenants.
Raise the Rent
While this may seem obvious, it is something many landlords forget to do. However, before you raise the rent, research comparable property rents in the area. Check whether your current rent is at par with other similar properties. If your rates are higher, check if the amenities justify the difference. Keep in mind that if you ask for too much rent, tenants will likely steer clear of your property! When your property is unoccupied; you lose money.
Claim Tax Deductions
You should not pay more than necessary for the amenities and operating expenses of your rental property. Unfortunately, many landlords pay more taxes than they should because they don’t take full advantage of the tax deductions available to them. Rental properties offer more tax benefits than many investments. Get a depreciation schedule from a quantity surveyor. It lists all items that depreciate and can help you to get a higher tax refund. Seek advice from your accountant if this strategy can help you.
Make the Property Pet-Friendly
Renters with pets have a lot of difficulty finding pet-friendly properties. Make your property suitable for pets and you will discover that tenants don’t mind paying a premium. While you may have to repair damages from time to time, you can charge higher rent. But before you allow a tenant to bring their pet into your property, ask for vaccination and medical certificates and find out if your landlord insurance covers animal damages.
Add Valuable Updates
Upgrading your rental property enhances its comfort, and most tenants will pay for useful updates. The best way to determine which improvements to make is by finding out what valuable extras other similar properties have. Some of the most important additions include air conditioners and dishwashers. A dishwasher is very useful for busy urban professionals and families with kids.
No doubt about it, every investor with a rental property wants to increase their rental income. Unfortunately, many go about it the wrong way and end up disagreeing with tenants. Don’t be one of those landlords who grace the tabloids for the wrong reasons. Use these excellent tips to boost rental yield.