As a property investor now is the time to think about making the ultimate new years resolution, and that is 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 and did you get a rent increase and secure a long term tenant.
Resolution number one: When does your current lease expire? Does it expire during a low demand season? Your property manager can inform you of the high demand periods of the year. So, upon renewal of the current agreement tailor the lease term so it expires in peak letting season of the year. This way should your tenant vacate your property will be available during a premium reletting period resulting in a shorter vacancy and the chance of achieving a higher rental.
Resolution number two: 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 a historically low rate.
Resolution number three: 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 built in robe, 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.
Article and research on behalf of LPMA (Leading Property Managers Australia)