Thursday, May 31, 2012

Lots of Ways to Increase Your Rental Yield

You have a great property as an investment, but you want to increase the rental yield, how do you do it? Have a look online and you can find an 'endless' list of ideas to increase your investment property's rental yield.


Some seem contradictory, but it depends on your situation and what your property is like.

  1. Increase the rent to market rate
  2. Decrease the rent to reduce vacancy
  3. Switch to an interest only loan( An experienced mortgage broker is extremely valuable)
  4. Refinance for a lower interest rate
  5. Use a property manager
  6. Self-manage the property if you live close and have the skills and patience
  7. Buy a low maintenance property
  8. Buy a property in a good location to ensure high rental demand
  9. Prepare a depreciation schedule(An experienced accountant is extremely valuable)
  10. Make sure the property is fully fenced
  11. Make the property pet friendly
  12. Fully furnish the property
  13. Rent out each bedroom separately (can work well in a student dominated area)
  14. Add better lighting inside and out
  15. Make the property attractive to students.
  16. Reconfigure the layout to create an extra bedroom.
  17. Install a Heatpump for efficient economical heating and cooling
  18. Install an alarm
  19. Install skylights in dark areas.
  20. Install wardrobes if there are none.
  21. Install a dishwasher
  22. Replace the internal doors
  23. Upgrade the hardware - all handles and knobs, along with electrical plates
  24. Replace and paint the front door for curb appeal
  25. Add a new mail box
  26. Paint the roof
  27. Power clean the property.
  28. Renovate the bathroom
  29. Put in a bath and exhaust fan
  30. Renovate the kitchen
  31. Lease the whiteware to tenants
  32. Lease out the garage or storage area
  33. Would your target pay more for a great coffee machine
  34. Paint inside
  35. Paint outside
  36. Landscaping to make the property more appealing and easy care
  37. Plant for privacy
  38. Install a clothesline that is retractable or can be folded down to maximise the back yard
  39. Install an electric garage door opener
  40. Install a deck
  41. If no room for a deck, add a paved area.
  42. Add a carport
  43. Put in new carpet
  44. Install wood flooring (or a laminate)
  45. Fix up obvious defects of the property
  46. Provide a gardening service
  47. Maximise tax deductions
  48. Add new blinds or curtains
  49. Ask tenants for their wishlists, what they would pay extra for? Consider following through with their wishes. (Happy tenants, are long-term tenants). 
  50. Add a veggie garden
  51. Add a chicken coop
  52. Install a treehouse and climbing frame to target families
So I've exhausted my list, what have I missed, or am I way off base?  As a property investor what would you try? What would you avoid?

No comments:

Post a Comment