Are you doing enough to improve slow rental growth?

There is an Australia-wide struggle for better rental yields, and not all of Melbourne is escaping it. CoreLogic RP Data has revealed that there was a 0.6 per cent rental rates drop for the capital cities overall, and while the Real Estate Institute of Victoria is reporting that Carlton and Central Melbourne are still providing solid yields, other zones are in somewhat of a rut.

However, you don’t have to simply sit back and watch. As a property investor, there are a number of different techniques you can use to help boost your rental rates if you discover them slipping. Melbourne is a city with some strong property performance, but it needs input from local investors as well.

Here are just a few things you can do to combat low yields.

Are you making the most of your rental property?

Know your audience

As a landlord, you are providing a service in much the same way that any other businessperson is. This is important to remember when trying to boost your yields, because just like in other industries, people will pay more for what they want.

Local amenities matter. 56 per cent of people from a Nielsen survey revealed that their decision to shop at a particular location is highly influenced by convenience. Use that consumer mindset to your advantage, and advertise unique local shops, services and transport options in your listing.

If you already have tenants (highly likely in the current Melbourne rental market), you may want to consider speaking to them in regards to what they would be willing to pay more rent for. Smaller apartments, for example, may suffer from a lack of storage space; something the Real Estate Buyers Agents Association found was in the top 10 most-desired features for an Australian property.

This wish also happens to be simple to accommodate – some additional cupboards could be enough to improve your rental yield. Whether you have tenants already or are seeking new ones, the key is knowing what they want. Providing it could improve your own financial situation too.

Ultimate lessons

Every renter is going to want slightly different things, but there are always going to be some constants. Knowing what these are is the key to a solid property portfolio. However, this kind of knowledge only comes with experience – something that even the most savvy investor may lack if they have only just moved into a particular area of Melbourne.

Take the guesswork out. Talk to the team at Nelson Alexander, for everything you need to know about property investment and management.