Top tips to maximise rental returns

Discussion in 'Property Management' started by Breno, 15th Jul, 2017.

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  1. Breno

    Breno New Member

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    1. Know your market demographics

    Every community has unique characteristics such as employment, population, and demographics which need to be understood for smarter investment decisions. As an investor, undertaking appropriate research and tapping into the knowledge of an experienced local agent is a great first step to making the right investment choice.

    Let’s say for example that you decide to purchase a property such as an apartment that's suited for a younger demographic of professionals however the strongest tenant demand in the area is actually from families whose property needs are totally different. This property purchase may in fact lead to a poor performing asset and impact on your returns over the life of the investment due to the vacancy and more frequent tenant turnover in addition to making it difficult to sell at the end of your investment cycle.

    Your annual return reduces by 2% every week your property is vacant so purchasing a property to suit the demographics of the area will always be occupied and therefore perform much better. ABS quick stats will give you great information about the demographics and more importantly the proportion of property types in that suburb so when used properly you can make an educated estimation on supply vs demand which will have have a massive impact on maximising your returns.

    Click here to visit ABS Quick Stats


    Search by geography
     
    Luke T, Jorgem and SeafordSunshine like this.
  2. Tom Simpson

    Tom Simpson Well-Known Member

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    Great easy to action advice!
     
  3. MTR

    MTR Well-Known Member

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    The top tip I will give when it comes to increasing rental returns is to keep good long term tenants.

    With every vacancy you lose money, this is the killer for me, in particular my USA properties.

    I still have tenants from 2011, I know its a different beast to Aussie property.
     
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  4. MoneyMan

    MoneyMan Well-Known Member

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    do you increase the rents for those long term ones? or keep below/pace with market
     
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  5. skater

    skater Well-Known Member

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    Most of my tenants are long term & I keep the rents at market rates. There is absolutely NO benefit at giving them discounts because they've been there long term.

    If a tenant likes the place, and you keep it well maintained, they will stay. Moving is inconvenient & expensive, and then once they DO move, they've got to pay market rents anyway. A saving of a few $ per week isn't going to keep someone there, if they are thinking of moving.
     
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  6. Lacrim

    Lacrim Well-Known Member

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    Why is the changeover more expensive than Oz?
     
  7. GSD

    GSD Active Member

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    I always meet my tenants and ensure a welcome gift is in the pantry in the day they move in.

    This does not increase the rent but it goes a long way to keeping them
     
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  8. Skydome

    Skydome Well-Known Member

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    One thing I'm curious about is can you get rental data for specific houses like you can with sale data?

    Be a hassle if you had to ring the estate agent to get the rental data so surely there must be an online place that holds previously available rental data for a specific house?
     
  9. skater

    skater Well-Known Member

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    No it doesn't! In fact, depending on the tenant, it may set you up as a bit of a soft touch. Keep it professional and keep your property well maintained. That will do a lot more to keep tenants than cheap gifts.
     
    Ed Barton likes this.
  10. MTR

    MTR Well-Known Member

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    1 month rent/fee to property manager to secure new tenant.

    When renting out, it generally means you need to repaint the house, tenants expect higher standard in US.
     

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