Maximising Rental Income: 5 Tips for Property Investors

Maximising rental income is a financial goal many investors have when owning an investment property. Here are our 5 top tips to maximise rental income.

1. Set an Optimal Rental Price

Optimise the price you are charging to your tenants. Compare the market and comparable properties in the area to have a general understanding on how much you should charge for rent. Weighing up the advantages of living in the property, what the property has to offer and the current marketing climate will allow you to figure out what rental price will work best.

2. Retain Good Tenants

Maximise your rental income by retaining good tenants, offer these tenants lease renewals with reasonable rent increase to keep them longer as high tenant turnover is costly. High tenant turnover results in longer and more frequent periods of vacancies which can be costly due to the effort of marketing and finding new, qualified tenants.

3. Maintain and Upgrade the Property

Regular maintenance to your investment property will increase property appeal to your tenants. You are maintaining the value of the property and show that you are committed to the upkeep of the property. Tenants are more likely to stay longer and in turn may be more flexible to any rent increases that may occur in the future.

4. Research the Rental Market

Understanding the rental market is important to maximising rental income. Having a thorough understanding of your competitors and the demand and supply of property in the area will allow you to make value-based decisions on how much your property is worth.

Additionally, developing a market effective strategy to appeal to prospective tenants will allow you to present solutions to the pain points of tenants in the current property market.

5. Add Value-Added Amenities

Valued-added amenities increase convenience and efficiency in one's everyday life. By adding value-added amenities, it increases the value of your property and justifies higher rental prices. Such amenities include a washing machine, a dryer, a pool, BBQ, private areas and gym services. Apartment specific amenities would include 24/7 security surveillance, secured facilities and private areas.