How to Increase Your Yield

How to Increase Your Investment Yield

HouseKitchenShowAs has been well reported, residential rents in Western Australia rose sharply in 2013/14. Many first home buyers who were renting did their sums and found it more viable to buy rather than continue on the rental merry go round.

This assumed, of course, that a reasonable deposit was held and a steady wage earned with which to service the loan.

However, at the beginning of 2015 rental demand peaked and the rental market was eventually flooded with vacant properties which saw the vacancy rates at record highs. Rentals yields therefore, have since fallen dramatically, on their way to returning to long term trend levels.

There are some simple and obvious ways to maintain a good level of rent when things turn around and therefore give you the highest and best return on your investment whatever the market is doing. I’ve listed a few here for you:

Renovate and Profit

Every property needs a face lift from time to time, and the best time to do this is between tenants. Obvious things such as painting, replacing carpets and window treatments whilst not outrageously expensive will certainly add value to the rental as well as attract a better quality tenant. If you want to spend a bit more, then upgrading the kitchen is a definite plus.

Replace Appliances

If you can’t afford the full kitchen reno, simply replacing the stove, hotplates and maybe installing a dishwasher or a rangehood is a cheaper option and will give the property a boost.

Safe and Sound

We are becoming far more security conscious and at the very least a property should have dead locks or quality security doors to the front and the back doors. Security screens on the windows also help give tenant’s a sense of safety. It is also now obligatory under the Residential Tenancies Act to install a minimum level of security to a rental property. So security is a big deal, especially for older people and single ladies. It’s just a fact of life..

Secure Car Parking

If your property has a garage or open carport an automatic security door is now essential for your tenant’s security and can add value to your investment. Car theft from cars parked in driveways and insecure carports is on the increase. Why make it easy for thieves? Give your tenant peace of mind.

These are some relatively simple and inexpensive ways to add value to your rental property.