As one of Perth’s most reputable and established property management companies, Time Conti Sheffield have had the privilege of working with hundreds of successful property investors. Over our 66 years of property management success, we’ve helped guide many of our clients to increase their rental yield and ultimately maximise their return on investment. With Perth’s current property market conditions, tricks to increasing investors’ rental yields are now more important than ever. Although yields will naturally fluctuate with market conditions, there are still steps property investors can take to maximise rental returns on your portfolio. A reputable property management company should be consistently looking for ways to increase your yield – here are just a few recommendations from our property management specialists. Please note that this advice is general in nature.
Superficial Renovations
With years of experience and accomplishments behind us, our team of property managers are excellent at advising investors on how best to spend their money when it comes to renovations. In terms of immediate return of investment, a simple cosmetic refresh can be invaluable. Some cost-effective tactics that can make a world of difference include painting walls in neutral or light colours, respraying old bathroom tiles, swapping out the bathroom vanity and sink, improving the lighting and replacing any tired carpet. By making the property seem brighter, more spacious and modernised, you can attract a premium rent and definitely cut down on vacancy rates.
Well-Timed and Regular Rental Reviews
Conducting regular rental reviews are an excellent way to incrementally increase yield over time. We recommend that rental reviews should occur each year and at every property changeover. Although this may not seem like a particularly groundbreaking strategy, the opportunity to increase weekly rent by just $10 or $15 can at least help maintain your existing rental return. The fact is that each year we see an increase in costs to property investors – rates, strata fees and water expenses. If your rent isn’t increasing at the same rate as these costs are, you will inevitably see a decline in your net yield.
On that note, be mindful of the timing of rental reviews. If a property is beachside, it could attract a higher rent during the summer months. Alternatively, if the property is near a university, the best time to increase rent is in the period just before the semester commences.
Sourcing and Retaining High-Quality Tenants
This particular recommendation certainly wouldn’t be groundbreaking news to any property investor. A great tenant will help reduce vacancy rates whilst also respecting and maintaining the property. Our team at Time Conti Sheffield have a trialled and tested method of successfully sourcing high-quality tenants time and time again. The most important points are to identify their character and check their rental history – this will determine their likeliness to look after the property, pay their rent on time and simply be easy to deal with. Presenting your property well and using professional photography can also play a large role in sourcing the perfect tenant. Investors can sometimes forgo the extra cost, thinking that they will increase their net yield. However, professional photography undoubtedly generates more interest around the property and gives the landlord a larger pool of applicants to choose from. Another benefit is that these photographs, if done well, can be used time and time again.
While immediate rental returns are important, we always advise our clients to also consider balancing this out with capital growth. If you’re looking for trusted and best property managers in Perth who are dedicated to maximising your investment, then look no further than Time Conti Sheffield. Contact our friendly team today on 9362 5333.
