Doing the research to find a great investment property is a key part of starting your investment journey. What about once you’ve purchased the property though? With rental markets moving quickly in 2020, especially as State Governments moved to introduce rent freezes and a pause on evictions, there’s never been a better time to think about ways to make more money from your investment property. In this article, we share three tips to help you keep getting the most from your investments.
Review the property’s rent
Just like the dynamic prices and returns in the owner-occupier market, the rental market moves around throughout the year as well. With that in mind, it’s important that you regularly review what you’re charging for rent to continue getting your best return on investment.
Take a look at what similar properties charge in your area and the neighbouring suburbs. Doing this will help you understand whether you’re overcharging, undercharging or have the rent price just right. Your rental price may not always go up either, which is especially true for times like this year. While it may not be preferable to drop your rent price, if the rest of the market is declining, you’re better off making sure the price for your property reflects that so your property isn’t left vacant for too long.
Refresh your property
Updating your rental property is a good way to keep the property in great condition, and it keeps it up to a standard that continues to attract great tenants. Updating your property doesn’t need to break the bank. You might consider a few different options such as decorating, tidying the garden or some basic remodelling.
Your key goal with property updates is to make the property attractive to great tenants, so a little bit of money invested in, for example, fresh paint now, can help you find dream tenants who live in your property for a long time.
Property management review
You should regularly review your property management team and processes, whether your property is self- managed, or you opt for an outsourced property manager. If you’ve been thinking about getting some of the management responsibility off your hands, and your property is currently self-managed, look into your property management options.
Regularly reviewing the management of your property and the state of the property itself will ensure you keep making a return on your investment, even in times when the economy and property market are going through a downturn.