Before you take the leap of going from a renter or owner yourself to being a landlord, it is important to consider how to get as much as possible in return on your investment. Getting the maximum rental rate you can for your property starts before you even begin investing in the property.
Investing for Better Return
It pays to think about whom your ideal tenant will be and what they will expect. Students and executives are obviously looking for different things in their potential homes. Take a look at a property from their perspective and imagine what they would be willing to pay. Is your prospective tenant really going to need another bedroom or would they rather have an extra parking space? Investing in an extra bedroom might never be recovered in years of rent but an extra parking space could. Value for your tenant might lie in having washing facilities on the property or the added safety of a motion sensor light at the entrance. Do not waste money on things that your tenants will not value or that they will not want to pay up for. Some renters might like having a nice garden but most will not want to pay extra for a landscaper to come by regularly.
Doing your homework on what renters in the area want will give you the knowledge you need to get top dollar when investing in property. If there is a low vacancy rate in the area then you can probably ask for a higher rate. Not including extras like water can help you negotiate the price you want. Advertise your rental rate excluding water and you will be in a more attractive price range. The tenant can take their own water usage into consideration. Having everything in working order is essential when renting out a property if you want to get the maximum rent. Try and avoid personalised touches to the decorations so that you do not drive away potential renters with your own personal taste.
To get everything up to spec and in place for showings it might be necessary to renovate your property and it might take a loan to have the funds for investing in renovations. NSWMC has a range of loans at competitive rates for investing in renovations of rental properties. To get top dollar for your rental property it takes a bit of homework to know where to add value and get the highest return when investing.