How To Keep Your Rental Property Profitable

So you’ve decided to try your hand at being a landlord. There are some major decisions that lie ahead, many of which you can’t afford to take lightly if you’re going to make a success of your investment.

Buying the right type of property is just the start. There are choices you’ll need to make throughout the lifetime of your rental to attract tenants and deliver the level of returns you’d hoped for.

These are just some of the steps you might want to take to make sure your rental property reaches its full potential.

Steady stream of tenants

It might sound obvious, but having a constant supply of tenants is critical if you’re going to get any sort of income from your rental property. Buying property in Sydney should stand you in good stead, as data from the Real Estate Institute of New South Wales shows vacancy rates in the inner city stand at just 1.3 per cent.

This compares to a city-wide result of 1.7 per cent, suggesting that real estate in Sydney could prove to be a really lucrative investment. This is why it’s so important to make sure you know as much as you can about your chosen location – it can help avoid any nasty surprises further down the line.

Pitch your rental costs right

Just because you’ve bought a property in a desirable location doesn’t mean you can charge whatever rental rate you like – it pays to be fair. Don’t undersell yourself by any means, but make sure you’re charging a fair amount to your tenants.

SQM Research reveals that asking rents have been increasing in the Harbour City pretty consistently over recent years. In the week ending April 20, asking rents for houses were up 4 per cent from a year earlier, while rental costs for units increased 2.2 per cent.

It’s important to make a profit on your investment, so think about implementing rent rises that are fair on both you and your tenant. Increase them too much and you could find your property empty, during which time it won’t be generating any money for you at all!

Marketing your property to the right people can make a real difference.

Consider renovations

A well-equipped and designed rental property is sure to attract better tenants, so why don’t you look at carrying out a renovations project? Simple changes such as providing new appliances and better storage solutions will all reflect well in the eyes of potential tenants.

Your changes don’t have to be big or expensive – ask yourself what you’d want as a tenant and you can’t go far wrong!