You can achieve your long-term financial goals through saving, investing in the property, and getting rental yield if you have surplus funds after covering your essential living expenses.
The rental market in Australia is very competitive, with house and apartment prices rising rapidly across the country. Suburbs of major Australian cities often offer 7–8 percent rental yields.
Yields from renting out houses in regional areas typically vary from 12% to 13%, while yields from renting out apartments typically range from 8.5% to 11%.
Gaining a grasp of the rental yield of a property will help you determine your profit margins, the nature of the cash you have available, and the areas in which you might be able to make improvements.
There are a lot of tips for you to take, from minor tweaks to significant improvements, to increase your rental income further.
While it’s improbable that every single one of these ideas would be suitable for your rental property or the market in your area, there is a good chance that at least one of them could help you raise your revenue.
1. Consider an HMO or a Residence with Numerous Occupants
HMOs, or housing complexes, are residences where three or more unrelated people from different households share living quarters.
The most significant returns on investment often come from HMOs because they allow you to collect rent from a larger number of tenants.
2. Put in a Bedroom
The shape of your space and the potential of converting or extending it will decide the sustainability of this option, but adding an extra bedroom could bring in additional rental revenue and increase the value of your property.
3. Refurbish It
Rental properties in great condition are more likely to retain paying tenants, command a higher asking rate, and see fewer vacancies. However, damage to the environment, such as peeling paint, broken doors, or torn carpet, will be seen and will make it harder to hit your targets.
4. Provide a Range of Extras
Additional appliances and lifestyle perks not commonly available outside specialized build-to-rent buildings can significantly increase your home’s resale value. As a result, you’ll have a larger pool of people interested in renting your property.
You can increase the asking price if you upgrade the property with non-essential equipment and technology like dishwashers, washer-dryer units, coffee makers, smart televisions, speakers, and the like. Because of the greater interest, you can raise the number of offers you receive or boost your asking rent.
5. Think about Allowing Pets
Adaptability is a must-have characteristic in a landlord but finding a place to live that allows pets is unusual. Because of the Residential Tenancies Amendment Act 2019, which prevents landlords from collecting a larger security deposit to counterbalance any potential damage caused by tenants’ cats and dogs, pet owners who rent are finding that their alternatives are becoming increasingly limited.
Nonetheless, if you want to set yourself apart from the competition in the market, charge higher rent, and increase your rental yield, allowing pets is one more way to do so.