8 Ways to Increase Rent Yields

As you know, having good tenants is only half the battle. You own your rental properties for a profit and must ensure that yours is a high rental yield property. Whether you own a few properties or have several, getting the best rental return is likely on your mind.

Some industry experts weighed in on how to get more rental returns. Here are the things they suggest.

1. Ensure the Term of Your Lease Reflects the Current Market Environment and Your Investing Goals

The days of using instinct, experience, and clever guesswork to determine the return on property investment are over. Financial facts and an accurate assessment of prevailing real estate climates will give you a solid basis to build your portfolio.

To make sure you are not shortchanging yourself, you can:

• Look at the rent charged for similar properties in your area
• Consider adding a rent-rise clause in the lease, particularly if the area is thriving and other rents are going up
• Offer shorter leases to give you an option to raise the rent, but it has a chance of backfiring and causing good tenants to move

2. Always Consider Using an Experienced Property Manager

Even the savviest property owners know that they cannot be everywhere to oversee their properties. This is why an excellent property manager is worth their weight in gold.

For under 10 per cent of your gross rental return, a property manager can:

• Collect the rent and provide you with rental statements.
• Find, screen, and select tenants.
• Handle complaints or issues.
• Handle property inspections and complete condition reports.
• Help ensure the highest possible rent.
• Maintain the property
• Minimise vacancies.
• Organise any property repairs where necessary.
• Review and negotiate rental increases.

3. Add Off-Street Parking

Many prospective tenants would gladly pay a bit more not to need to struggle with parking every day. Properties with the best rental returns offer an area to park. If you can add a carport, that would be fantastic. However, you do not need to be that fancy. A simple driveway or a car park for two will make an excellent impression on those viewing your property, especially if they have spent any length of time parking on the street.

4. Street Appeal Matters

Take a tough, honest look at your property from the street. Are the plants unkempt and overgrown? Is the grass all but dead? These things will cause a knee-jerk reaction for prospective tenants before they even walk through the door.

Spend time cleaning out flowerbeds and doing lawn care. If time and your budget permit, take out unruly plants and replace them with easy-care bushes or shrubs. A neat front bed is almost always preferred to a splashy garden that screams high maintenance.

Be sure the doors, windows shutters and other highly noticeable areas are clean and in good working order.

5. Invest in Extra Security

Do not simply invest in security. Make sure it is clear to prospective renters that you value their safety. A simple alarm or doorbell camera will speak volumes at a reasonable price.

Consider adding extra outdoor lighting and trim shrubs or trees that block a view from the street. Do not forget new deadbolts or, if you can afford them, an alarm system.

Even in the best neighbourhood, people are concerned about crime. Addressing the concern by heading off the problem is a great way to increase rental income.

6. Get the Most for Your Renovation Dollars

It is easy to get carried away upgrading and changing expensive details that potential renters may never notice. Rather than fancy quartz countertops, update your cabinet doors. If you have a tight budget, replace the handles on drawers and cupboards, add a fresh coat of light neutral paint, shine the floor, and put in brighter lights. Your quick facelift may have just made you serious money.

Appliances are a surefire way to get the most out of your money. You do not need the fanciest high-tech ones available. Go for a well-made brand with a great warranty.

The same logic applies in the bathroom. The temptation to gut and re-do your bathroom should be avoided. (Unless you have bottomless pockets or a genuinely awful bathroom.) You do not need to re-tile if you can clean and paint the tile with high-quality tile paint. Focus on light and neutral décor. If you add features like new shower curtains, showerheads, faucets and towel racks, you can put a new spin on an old bathroom without going broke.

7. Make Spaces Adaptable

Flexible space in the home became a premium during the pandemic, and now we see many members of the workforce are not returning to the office. This means if you can add a bonus room to your house, potential tenants will happily pay a higher rent, giving you a higher rental yield.

The room does not need to be a dedicated office space. If a family requires an extra bedroom or perhaps a guest room, they can easily accomplish this. If it is to be an office, make sure you have sufficient outlets and arrange to have the highest speed internet possible, and remember to advertise it.

8. Above All Else, Be Safe and Compliant

Nothing is more important than ensuring your rental properties meet safety standards. For some property owners, this idea requires no debate. If you own the property, then do your due diligence. A high rental yield amounts to nothing if someone is harmed because of your negligence.

If maintaining your property as a way to adhere to your common law duty of care for your tenants does not sway your opinions on upkeep, perhaps the hefty fines charges against you might.

When you own rental property, you have a fine line between adding value to the property and wasting money on things that do not give renters an incentive to choose your rental. Sometimes, you do not know the outcome until long after the money is spent.

If you need assistance finding the best tenants, contact us at Nest Reality. Our experienced agents can help put your property at the top of every renter’s list. In addition to renting your property, you would benefit from understanding how to get more rental returns. Our experts can offer suggestions to help you with that aspect as well.

*Please Note*
The material presented here is for informational use only. It is not legally binding real estate advice and should not replace a consultation with an experienced real estate professional.