As a property investor, now is the time to think about making the ultimate new year’s resolution. To increase your rental returns.
Take the time to review the past rental year:
- Did you have a vacancy and if so how long was the property vacant for?
- Did you get a rent increase and secure a long term tenant?
Below is an overview of the steps you can take to increase your rental returns – ensuring you achieve your New Year’s resolution in 2015!
- Ask yourself, when does your tenant’s current lease expire? Does it expire during a low demand season or a high demand season?
- Your Property Manager can inform you of the high demand periods of the year and this is important in planning to capitalise on rental return in your tenant’s next lease agreement.
- Upon renewal of the current lease agreement you can tailor the lease term so it expires in peak letting season of the year. This way should your tenant vacate your property when the lease expires, it will be available for re-leaseing during a high demand period that will result in a shorter vacancy and the chance of achieving a higher rental.
- Have you revisited your investment loan terms?
- Rates are very competitive at present and many lenders are now offering incentives to property investors to switch and to enter into new loan terms. This is a great opportunity to fix your loan at an historically low rate.
- Review whether you need to update any fixtures and fittings to enhance the rental and capital value of the property.
- Now is the perfect time to plan this value enhancing exercise. Firstly we are entering into the final six months of the financial year so such works are advantageous from a taxation perspective.
- Secondly, undertaking improvements be it installing a BIW, or new blinds, even new tap fittings is often enough to show your tenant that the property is definitely worth staying in for the long term.