10 Ways to Increase Your Rental Income

Looking to bolster your rental income? Or perhaps you want to make your rental property stand out a little more from the rest? It may be time to give your investment property a bit of attention. There is a direct correlation between a property’s appearance and the rental income it is able to produce. Moreover, there is a distinct correlation between a property’s presentation and the tenants it attracts.

Looking to bolster your rental income? Or perhaps you want to make your rental property stand out a little more from the rest?

It may be time to give your investment property a bit of attention.

There is a direct correlation between a property’s appearance and the rental income it is able to produce. Moreover, there is a distinct correlation between a property’s presentation and the tenants it attracts.

With the right improvements, landlords can significantly increase the rental amount they can charge on their property. For example, a fresh coat of paint could add $30 a week to your rent – or $1,560 per year.

A well-presented property can also appeal to a greater base of potential tenants as well as a higher calibre of tenant, helping you steer clear of any tenant-related problems.

Of course, there is a fine line between improvements which can increase rental income and those which simply leave you over-capitalized, so you’ll need to think carefully before embarking on any extravagant purchases or extensive renovations. For example, base model blinds can be a great addition but lavish velvet curtains are simply excessive.

Several simple but effective improvements which can make a big difference to your rental income detailed below.

Simple and Effective Improvements

  • Replacement of all worn out and tired-looking items such as kitchen and bathroom handles, doors, door handles and blinds
  • New floor coverings
  • A fresh lick of paint – white will always create space
  • New light fittings and extra fittings can really modernise a property and give it a ‘lift’
  • Modern stainless steel appliances – popular with tenants and they create a modern feel
  • Install air conditioning (or even ceiling fans) and dishwasher
  • A yard tidy-up – a well maintained garden and lawn and clean paths can make a big difference to a property’s appeal
  • The addition of an internal laundry, perhaps within a linen press if space is limited, or even laundry taps in the bathroom. A property with laundry facilities can secure much better rent than one without
  • Security features such as screen doors or secure front gates
  • Clean! Get out the pressure hose, scrubbing brushers and JIF and erase dust, grime and mould – a good clean can make a world of difference to a property’s feel

Understanding the Contract of Sale

Once you’ve found the perfect home for sale that you’d like to purchase, you can then enter the process of negotiating a sale with the owner and real estate agent. A sales and purchase agreement may look like a scary document full of clauses and fine print, but it’s actually not that hard to understand.

A purchase agreement may look scary, but it’s actually not that hard to understand.

Steps Before you Sign

Once you’ve found the perfect home for sale that you’d like to purchase, you can then enter the process of negotiating a sale with the owner and real estate agent.

A sales and purchase agreement may look like a scary document full of clauses and fine print, but it’s actually not that hard to understand.

Once your offer has been accepted by the owner, and after both parties have signed the contract, the contract is considered to have been exchanged.

However, before you sign the contract, you will need to get it reviewed by a lawyer or solicitor. It’s extremely important to have a professional check that everything is sound.

While the contract for your property is getting drawn up, book a professional property inspector to view the home as one of the special conditions of sale.

Things to Remember

Each state can have different rules and regulations for the sale and purchase of real estate. This means it is extremely important that you have an understanding of your rights and obligations as a buyer in the area in which you are purchasing.

As a buyer, you have a legislated cooling off period for the sale of the property. The length of this period can vary in each state, as well as the rights you have during this time.