How can I get my tenants to pay more for my investment property?
When you own an investment property, chances are you're constantly looking for ways to get as much out of it as you can. After all, being a savvy investor can mean putting your thinking cap on and taking a small risk or two.
One strategy could be finding ways to get your tenants to pay more in rent to ensure you're getting the most out of your Queensland rental property. After all, the amount your tenants pay you can directly affect how much money you make!
Whether it's an annual rent review to make sure you're charging the right amount or even giving your property a spruce up between tenancies to retain its value, there are numerous methods through which you can extract more value from your rental.
It starts from the very beginning
Getting your tenants to pay more in rent can start from the beginning of the investment process. This means buying in an area that you'll actually get a good return from.
There's no point buying a brand new home out in the middle of nowhere with the closest neighbour being an hour's drive away. Instead, look for things like projects, development, amenities and job growth, as these features will make a home, and the suburb it's in, an attractive place to live.
When you're looking for a property, you might even want to put yourself in your tenants' shoes. Consider if you'd live in the area if you were renting, and if not, find out what the area is lacking in.
Cater to your tenants
Another way to potentially get your tenants to pay more is to cater to some of their needs.
Many landlords often think that pets can cause a lot of damage and should never be allowed at rental properties. But this means shutting out an entire type of renter altogether. If you choose to perhaps allow a cat or small dog, you could expand your pool of tenants and cast your net wider. Allowing pets could also make your property more attractive to more tenants, potentially giving you the opportunity to charge more because of the high demand.
Of course, you'll still have to think about your property and its care. You could ask your tenants to get carpets professionally steam cleaned to take care of any stains at the end of tenancies, or even ask them to keep their animals outside only. Make sure any special conditions like these are discussed pre-tenancy and put in writing in tenancy agreements.
Match the market
You might think that setting the rent when you first buy your investment property is a one-time-only task, but it shouldn't be! You'll need to regularly review this throughout the year or potentially miss out on getting the amount you deserve.
By working with a wealth coach who knows your investment property and the local market, you can get accurate advice on how much to charge and when to review your strategy.