How to increase your weekly rent
Setting a fair but profitable weekly rental cost is crucial for any landlord. After all, you want to make sure your property remains occupied and you’re not pricing people out of the market, but you also want to make a profit.
The February CoreLogic RP Data Rent Review found that while rental rates are increasing, it’s at a much steadier rate than has been seen in the past. Across the combined capital cities, the increase stood at 0.3 per cent from the previous month, suggesting landlords need to take action to get the most out of their investment.
These are just some of the ways you can justify increasing your weekly rates and make sure your property investment is earning as much as you would like it to.
If you provide appliances it’s your duty to make sure they’re properly maintained
Do a spot of DIY
If it’s been a while since your rental property had a spruce-up then now could be the time to do it. Tenants are unlikely to be quite so happy with the idea of a rent increase if they’ve been living in the same shabby surroundings for months on end, so show willing and give them something to smile about.
The ideal solution is to get an expert in to do it for you. Monash University warns that even the simplest of tasks can cause injury if you’re not quite sure of what you’re doing – at least 2,000 Victorians are seriously injured each year as a result of carrying out home improvements.
Provide furnished surroundings
A relatively inexpensive washing machine or dishwasher could end up reaping you much higher rental returns in the long run. This type of property is particularly appealing to first-time renters or anyone who’s moved a considerable distance and hasn’t brought all their white goods along for the ride.
Bear in mind, however, that if you do provide appliances it will be your duty to make sure they’re properly maintained. You might want to think about including them in your regular inspections to make sure everything stays in full working order.
There are various ways to increase how much rent you charge.
Install solar panels
Putting solar panels in place will involve a much greater capital outlay, but it could pay dividends in terms of weekly rental income. Speaking to Your Investment Property, Patrick Bright, buyer’s agent and director of EPS Property Search explained that more tenants are showing a preference for going green.
“For around $4,000 plus installation fees, you can have a 5kw solar panel system installed on your investment property that should generate enough power to look after the tenants’ needs with a little leftover to put back into the grid,” he told the magazine.
For help making your rental property in Melbourne a success, speak to the team at Nelson Alexander Real Estate.
