For Buyers
12 min read
8 Simple Ways To Increase Your Rental Returns
While adding a bedroom or completely remodelling the bathroom will certainly boost your rental yield, there are many easier ways you can differentiate your property from the other options on the market. Something as simple as adding pet-friendly fences or energy efficient heating options can have a huge impact on the type of tenants you attract.
High quality tenants are often willing to pay more for a comfortable home, and are also more likely to look after it. You definitely want to do all you can to attract the right types of people to your property. Here are some surprisingly simple ways you can make sure that your rental will bring in fantastic tenants and enviable returns.
First and foremost, make sure there aren’t any glaring issues with your property. You’d be amazed how many rentals don’t have basic amenities such as full kitchen facilities or on-site laundry. While installing a washing machine might seem like a hassle now, lacking these things is often a deal-breaker and can have a serious impact on your potential returns. Most tenants will be willing to pay a little more for a warm, dry and convenient place to do their laundry over one that’s going to force them to spend their weekends hanging around the laundromat.
A lot of kiwis love to relax outside after work, so make sure your rental property offers them a nice place to soak up some sun at the end of a long day. Just keep in mind that most tenants won’t be keen to look after a big garden for you. If you’ve got a huge yard out back, you’ll definitely need to contract someone to look after the lawns - or do them yourself.
Otherwise, a simple courtyard or deck makes the perfect outdoor area for a rental property. Add a table and chairs, perhaps a few pot plants, and you’ll be all set. And while you’re at it, add a clothesline in a sunny spot outside - many tenants will see this as a great opportunity to lower their power bills. Finally- consider setting up a simple spot where they can grow their own veges or flowers.
If your property is pretty good, but just seems to lack charm, a few modern fixtures and fittings might be just the change you need. Consider upgrading things like kitchen cabinets, bathroom taps, shower curtains, and doorknobs.
Little improvements like this usually aren’t too costly, but will make sure people get a great first impression of the house. Plus, if your fittings are functional and new from the get-go, your tenants will be happier that they don't have issues to fix, and you're not going to need to be on call for fix ups quite as much.
Never underestimate the power of paint. If you’re looking to freshen up the property, this is a great way to give it that “brand new” look again. It can be tempting to add some creative flair with bright colours, but it’s usually best to stick to neutral shades, like cream or grey. However, avoid painting the whole place white, as it can look stark. And remember, a high gloss paint on any skirting boards and window or door frames is a great way to cover up any scuffs and chips.
Depending on the type of tenants you’re trying to attract, adding furniture could make a big difference. For students or expats who might only be in the city short-term, finding a property that’s already furnished (or even partially furnished) can take a lot of the stress out of their move.
If you decide to go this route, make sure you include things like whiteware, couches, a dining table and chairs in the living spaces, and beds, side tables, and wardrobes in the bedrooms. While you don’t need to supply incredible furniture, remember that anything too shabby or mismatched isn’t a good look either.
If your investment property is a nice suburban home, then you’re probably trying to rent to families. Play spaces, off-street parking, strong fencing to keep kids away from the road, a spacious bathroom, and plenty of storage will all appeal to mums and dads. Consider offering a longer-term tenancy, and letting them do things like wallpaper the kids’ rooms. If your property has the makings of an awesome family home, you'll not only attract the perfect tenants but you'll also likely keep them longer too.
Many landlords don’t allow pets in their rental properties, so being pet-friendly is a great way to set yourself apart from the competition. Tenants who have pets also pay an average of $20.49 more in rent per week, and usually stay in their rentals longer. So, being accommodating of furry friends is not only often a worthwhile investment, but is also the right thing to do. Pets are part of families!
You’ll likely want to install fences to make the property secure and choose flooring that’s easy to clean. Make sure your tenancy agreement specifies the tenant’s responsibilities around their pet.
When thinking about how to increase your rental returns, make sure your always putting your tenant first. Imagine you’re someone who’s looking for a rental, and think about what you’d be likely to value in a home. If a rental is out of date or has fittings that need modernising, tenants will definitely expect it to at least be cheap. But if you can ensure that your property is the best it can be, and even go the extra mile with some custom touches, you'll not only be creating a quality rental offering in the market and helping to alleviate stress for people trying to find a suitable property to rent, but you're also likely to get a better price for your rental.
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How to easily increase your rental returns
High quality tenants are often willing to pay more for a comfortable home, and are also more likely to look after it. You definitely want to do all you can to attract the right types of people to your property. Here are some surprisingly simple ways you can make sure that your rental will bring in fantastic tenants and enviable returns.
Address any potential deal-breakers
First and foremost, make sure there aren’t any glaring issues with your property. You’d be amazed how many rentals don’t have basic amenities such as full kitchen facilities or on-site laundry. While installing a washing machine might seem like a hassle now, lacking these things is often a deal-breaker and can have a serious impact on your potential returns. Most tenants will be willing to pay a little more for a warm, dry and convenient place to do their laundry over one that’s going to force them to spend their weekends hanging around the laundromat.
Think about your outdoor spaces
A lot of kiwis love to relax outside after work, so make sure your rental property offers them a nice place to soak up some sun at the end of a long day. Just keep in mind that most tenants won’t be keen to look after a big garden for you. If you’ve got a huge yard out back, you’ll definitely need to contract someone to look after the lawns - or do them yourself.
Otherwise, a simple courtyard or deck makes the perfect outdoor area for a rental property. Add a table and chairs, perhaps a few pot plants, and you’ll be all set. And while you’re at it, add a clothesline in a sunny spot outside - many tenants will see this as a great opportunity to lower their power bills. Finally- consider setting up a simple spot where they can grow their own veges or flowers.
Make it modern
If your property is pretty good, but just seems to lack charm, a few modern fixtures and fittings might be just the change you need. Consider upgrading things like kitchen cabinets, bathroom taps, shower curtains, and doorknobs.
Little improvements like this usually aren’t too costly, but will make sure people get a great first impression of the house. Plus, if your fittings are functional and new from the get-go, your tenants will be happier that they don't have issues to fix, and you're not going to need to be on call for fix ups quite as much.
Give it a coat of paint
Never underestimate the power of paint. If you’re looking to freshen up the property, this is a great way to give it that “brand new” look again. It can be tempting to add some creative flair with bright colours, but it’s usually best to stick to neutral shades, like cream or grey. However, avoid painting the whole place white, as it can look stark. And remember, a high gloss paint on any skirting boards and window or door frames is a great way to cover up any scuffs and chips.
Consider furnishing
Depending on the type of tenants you’re trying to attract, adding furniture could make a big difference. For students or expats who might only be in the city short-term, finding a property that’s already furnished (or even partially furnished) can take a lot of the stress out of their move.
If you decide to go this route, make sure you include things like whiteware, couches, a dining table and chairs in the living spaces, and beds, side tables, and wardrobes in the bedrooms. While you don’t need to supply incredible furniture, remember that anything too shabby or mismatched isn’t a good look either.
Appeal to families
If your investment property is a nice suburban home, then you’re probably trying to rent to families. Play spaces, off-street parking, strong fencing to keep kids away from the road, a spacious bathroom, and plenty of storage will all appeal to mums and dads. Consider offering a longer-term tenancy, and letting them do things like wallpaper the kids’ rooms. If your property has the makings of an awesome family home, you'll not only attract the perfect tenants but you'll also likely keep them longer too.
Make the property pet-friendly
Many landlords don’t allow pets in their rental properties, so being pet-friendly is a great way to set yourself apart from the competition. Tenants who have pets also pay an average of $20.49 more in rent per week, and usually stay in their rentals longer. So, being accommodating of furry friends is not only often a worthwhile investment, but is also the right thing to do. Pets are part of families!
You’ll likely want to install fences to make the property secure and choose flooring that’s easy to clean. Make sure your tenancy agreement specifies the tenant’s responsibilities around their pet.
Always put yourself in your tenants’ shoes
When thinking about how to increase your rental returns, make sure your always putting your tenant first. Imagine you’re someone who’s looking for a rental, and think about what you’d be likely to value in a home. If a rental is out of date or has fittings that need modernising, tenants will definitely expect it to at least be cheap. But if you can ensure that your property is the best it can be, and even go the extra mile with some custom touches, you'll not only be creating a quality rental offering in the market and helping to alleviate stress for people trying to find a suitable property to rent, but you're also likely to get a better price for your rental.
If you’re a property investor or landlord, you might also enjoy these posts:
The Best Cities To Buy An Investment Property In New Zealand
Top property tech tools for modern landlords