2021 might very well be the year for rental demand. We’ve seen the global health crisis wreaking havoc on people’s financial condition and they are now apprehensive about buying a new home.
As such, the demand for rental property has increased considerably, witnessing a significant growth of 34.6% over 2019.
Even more so, amid the coronavirus pandemic, the property market in Australia is experiencing a growth in demand for rental properties. As per REA Insights Weekly Rental Demand Index, the demand for a rental property in Australia has seen a rise of 1.5% and 0.1% in the last two weeks respectively.
With the demand rising at a rapid pace, the competition might become tough with more tenants entering the market.
So, how would you differentiate with your property and increase its rental value in the long run?
“One of the reasons I love investing in property is that there are things you can do to increase both the value and yield of your investment – it’s amazing how even the little things can make a big difference!” said Rob Farmer, CEO of RUN Property – a property management group in Australia.
That’s why we have compiled five simple tips that can help boost the rental value of your property.
1. Deep Clean Your Home Before Renting Out
Dirt, grime, and stains on your window glass, bathroom ceramics, kitchen tiles, or floor can leave a poor impression on your potential tenants.
Therefore, deep cleaning your home before letting out is a must. You will be able to present your property in the best state it can be, clean and tidy. This is an ideal scenario for many potential tenants as it is proven that people are more inclined towards tidy places as it helps better with focus.
Furthermore, deep cleaning your rental property at least once in 6 months also helps identify the areas that need repair or renovation. With the right restorations, it will save the potential tenants time and frustrations in the future when they rent out your property.
Hire a professional deep cleaning company to save time and money, and make your rental property spotless and beautiful again.
However, if you’re looking for the ideal deep cleaning service provider, it’s important to consider some factors to ensure you make the proper hiring selection. For example, asking for referrals from your family and friends can be an excellent way to start the hiring process.
Once you’ve compiled a list of prospects, you can begin asking about their cleaning methods, specialisations, chemicals used, and availability. Additionally, it would be best to conduct a background check and verify their insurance and warranties to determine if they’re the right fit for the job.
2. Consider Adding an Extension
Adding an extension can be a good idea to increase its value over time and generate higher yields.
This can come in the form of an extra bedroom or perhaps a patio or wooden decking to the same rental property, giving potential tenants plenty of options and flexibility.
If it is easy and economical, an extension to your property can be an effective way to attract potential tenants who are willing to pay more.
Apart from that, it may also help you create extra floor spaces and improve the overall functionality of your rental property.
3. Little Renovations Can Do Wonders
If you want to augment the rental value of your property, you will need to spend some money.
Everyone prefers renting a home that looks visually pleasing and attractive; not one that appears dull and shabby. So, making little renovations to your property is required.
For instance, adding a fresh coat of paint externally and internally will make your rental property more appealing, fresh, and modern.
Other renovations you can make include replacing your old and stained carpet with a new one; polishing your hard flooring or anything that you think will enhance the value of your property and make it attractive for your tenants.
Therefore, renovations might be a good deciding factor for potential tenants.
However, when executing little renovations, collaborating with professionals might be a good idea to get the job done correctly.
Generally, renovation experts have the experience and skills to help you give your rental property a fresh look. They also have the right tools and equipment to help them complete the job quickly and seamlessly.
4. Advertise Your Property
The competition is tough in Australia’s rental property market. More people are now searching for homes online because that is more convenient, simple, and helps save time.
Real estate portals are now flooded with advertisements from property owners and there is no reason why you should not leverage this platform to market your rental property.
Sign up on any of these portals, upload high-definition photos of your property and provide an attractive description.
This allows potential tenants to visualise the property and know about its key features before consulting an agent or requesting a visit. Advertising gives your rental property a competitive edge and makes it more visible than other properties in your location.
5. Hire a Professional Property Manager
Property owners or investors can consider hiring an expert property manager to increase the rental value and maximise the yield. If you’re wondering how to work out rental yield, you could use the help of a professional.
An experienced and reputable agent will provide valuable insight into the property market and expert advice that will help tap into opportunities to enhance your rental growth.
They have excellent knowledge of an owner’s needs and can help you through your investment journey.
A good property manager can make a huge difference in adding value to the rental property through their expertise.
However, ensure hiring only a reputable and experienced property management company that offers the best service and affordable fees.
Thankfully, looking for the right property manager for your rental property doesn’t have to be challenging. Many reputable third-party review websites can help you choose the right company specialising in property management. They provide all the necessary information you need to find the perfect property manager for your rental property.
With the rising competition in rental property, you can try implementing the above tips to enhance the rental value of your property and make it stand out.