Rents are definitely on the rise but increasing the rent is not the only way to increase your yield. You can also decrease your expenses and decrease the length of your vacancies.
Here are seven tips:
- Increase the rent. This is the primary income producer but know your market.
- Decrease the rent. This applies to those who are still suffering vacancies. You can go through prolonged vacancy periods when your rent is set too high that chew up all your profits.
- Prepare a depreciation schedule. The tax office offers this deduction. So why not take advantage of it? Many investors don't realise that depreciation is available on older buildings too - not just brand new apartment blocks.
- Consider pets. Half the Australian population has pets. So you can broaden your market by allowing your tenants to have pets.
- Make your property more attractive. The time to do this is when you have a vacancy. This attracts tenants and allows you to increase the rent.
- Include air-conditioning. Properties with this feature rent for an extra $10-15.00 a week over those without it. Not only will you be able to claim depreciation on it, but you will also attract a wider range of tenants lessening any chances of a vacancy.
- Keep the property looking smart. It is recommended every 5 years to give your property a good overhaul and every 10 years a full refurbishment. This keeps the tenants happy and minimises vacancies.
If you have a real estate need or question feel free to phone me Noel Thompson Principal Professionals Logan Lifestyles on 0418 517 525 or call into our friendly office at Waterford for further assistance.