24 Property Management Secrets to Increasing your Rental Income!

Here are some concepts that may help you improve your cash flow…

  1. Higher Rental Value

Ensure the rental value is assessed on a 6 monthly basis.

  1. Property Depreciation Schedule

As a building gets older, items wear out – they depreciate. The ATO allows property owners to claim this depreciation as a deduction. Claiming all the depreciation property investors are entitled to on an investment property can make a big difference to their cash flow. Make sure you get a schedule completed by a quantity surveyor like BMT Tax Depreciation.

  1. Employ a professional

Property Managers are equipped with knowledge and skill to best manage investment properties. They dedicate each day to this.

  1. Refinancing with decreased interest rate

Try and negotiate with your current lender to get a better deal on your interest rate. You may also be able to transfer your loan to another lender with an option to refinance it with a decreased interest rate.

  1. Purchase well-maintained properties

Investment properties will always have maintenance. Purchasing a property that is brand new or near new and well maintained should decrease the cost of repairs and maintenance.

  1. Opt for an interest-only loan

Increase your cash flow by lowering the amount of your repayments by paying only the interest on the loan.

  1. Optimise all possible tax deductions

It is important to employ an accountant who specialises in property investment to ensure all deductions are claimed. Remember to keep all receipts.

  1. Attractive property

When leasing the property ensure it is always immaculately presentation and the gardens are maintained. Speak with a property management expert (like us)  about what features are most attractive to tenants.

  1. Lifestyle

Ensure that the style of the property matches the lifestyle of your target market.

  1. Pet friendly house

Majority of Australian’s own a pet. Be open to the idea of a pet living at your investment property. You can add special clauses in the lease to cover for damage in the unlikely case that it occurs.

  1. Gardening services

If the yards are big and complex, employ a professional gardener to add the property on a regular basis & include part of this cost in the rent.

  1. Secure car parking

A garage is the most attractive car parking situation for any tenant. Ensure they have a secure place to park their car, this is really important for them.

  1. Fresh paint

Repainting the inside of the home can create a new fresh feel to the home.

  1. Maintenance

Ensure all aspects of the investment property are in working order. Tenants want to live in a property that is looked after by the owner.

  1. Heating and air-conditioning

Install heating & air con at the property so tenants enjoy the benefits of keeping warm in Winter and cool in Summer. They will live at the property for longer if they are comfortable.

  1. Ceiling fans

A cheaper option to cooling that still provides comfort is ceiling fans. Install a ceiling fan to each room of the property.

  1. Bathroom renovation

A minor improvement to the bathroom and can make a huge impact of a tenant’s view of the property. Ensure all finishing’s are of quality.

  1. Kitchen renovation

Kitchen renos can be very expensive. Installing a new cook top, new floor or window coverings will make a nice difference to the home.

  1. Bedrooms

If your property can be extended to accommodate additional bedrooms, it may enable you to achieve higher rent & make your property more attractive in a family orientated market.

  1. Exhaust fan

Install exhaust fans in the kitchen & bathrooms, this will help reduce the possibility of mould build up and reduce future maintenance expenses.

  1. Tiles

Add new sealer to the grout around the tiles to freshen them up. Replace any cracked or broken tiles in the bathroom and kitchen.

  1. Add a bathtub

This is an attractive feature & necessity for families with children.

  1. Floor & window furnishings

If the floor & window furnishings are looking old and worn, replace them. They last for years and new floor & window coverings make a huge difference in the presentation of your investment property.

  1. Rental asking price

When a property is vacant, the lost rent can add up very quickly. In some situations you can reduce the initial asking price so the property can be leased quickly, then increase the rental price over the period of the tenancy.

Please feel free to contact us to discuss further or for any assistance 03 9826 1399

 

Share