As a property investor now is the time to think about making the ultimate New Year’s Resolution – increasing your rental returns.
Follow the guidelines below to learn how.
Start by taking the time to review the past rental year. Did you have a vacancy period and if so, how long was the property vacant? Did you get a rent increase and secure a long-term tenant afterwards?
Resolution number 1 – Ensure your lease expires during a peak letting season
When does your current lease expire? Does it expire during a low demand season or a peak letting season? Your Property Manager can inform you of the peak letting seasons throughout the year. Upon renewal of the current agreement, tailor the lease term so it expires in a peak letting season. This way, should your tenant vacate your property, it will be available during a premium re-letting period resulting in a shorter vacancy and the chance of achieving a higher rental return.
Resolution number 2 – Revisit your investment loan terms
When was the last time 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 enter into new loan terms. This may be a great opportunity to fix your loan at historically low rates.
Resolution number 3 – Enhance the rental and capital value of your property
The start of a new year is the perfect time to review whether you need to update any fixtures and fittings to enhance the rental and capital value of your investment property. Why is it the perfect time to plan this value enhancing exercise?
Firstly we are entering into the final six months of the current financial year, so such works may be advantageous from a taxation perspective.
Secondly, undertaking improvements, be it installing built in wardrobes, new blinds or new tap fittings, is often enough to show your tenant that the property is definitely worth staying in for the long term. And we all know minimising vacancy periods means more money in the bank for you!