When leasing a property, the enquiry level received from the beginning of the marketing campaign can be directly impacted by the presentation of the photographs. Whilst it is an option to have our Property Managers take photos at no charge, the difference between photos taken by a Property Manager and a professional photographer is noticeable. Professional photography puts your property in the best possible position to attract initial interest and that leads to inspections and applications. More applications means you have options with your tenant, and often competion for a property sees tenants offering an extra $10-$20 per week to secure the property. Professional photography packages are tax-deductible and can be reused multiple times during your ownership of the property, so long as you haven't renovated and made significant changes. For a small upfront payment, professional photography is a must if you are hoping to lease your property quickly.
The best time to give your property a cosmetic upgrade is when one tenant gives notice and before you advertise the property for rent again. Fresh paint, fresh carpet, new appliances, anything that you think needs addressing should be done as soon as your outgoing tenants vacate. Speak to your Property Manager about the work you wish to be done, as we have an extensive list of trusted tradespeople that we can organise to quote and carry out work on your property. When you make alterations to a property, we include the upgrades in the marketing to tell prospective tenants. This is always highly appealing to tenants and can be the difference between a tenant applying for your property instead of the one down the street. Depending on the work carried out - it can often result in a rent increase for the next tenancy because the value of the property has increased.
It is common for landlords to express to their Property Manager that they wish to receive a set amount of rent per week, and there are times that the property remains vacant because of that set price point. This is where it becomes prudent to look at the potential profits vs the actual losses. Whilst you may think you would like to achieve $450 per week, the more weeks your property remains vacant, that is money lost from your bottom line. A slight decrease in the advertised weekly rent can save you money lost in the long term because it is designed to put an end to your vacancy period quickly. If you adjust the price down to $425 per week and lease the property for 12 months, instead of looking at the difference in the price adjustment, it's important to focus on the money you've saved by finding a tenant.
Rent increases are a way to maintain your current tenancy, whilst also adjusting the price to market value. If you have a tenant who has been occupying the property for a long period of time, it's not uncommon to request a rent review. If your property was vacant in the current market, it may fetch more than your current tenant is paying. However, there are laws in place to ensure that the rent increase is done correctly and not in excess of what the tenant is currently paying. The tenancy agreement you have entered into with your tenant will determine how frequently you can execute a rent increase. Agents must give tenants 60 days' written notice confirming the commencement date of the adjusted rent - this gives the tenant the option to give notice and vacate should they not wish to pay the increased amount. Speak to your Property Manager about executing a plan for your property and a possible rent increase.
If you own a house on a large enough block of land, the option to add a granny flat or a separate dwelling is a great way to increase your rental income. Granny flats start at about $100,000 to build, making it an affordable way to add to your investment portfolio. The minimum land size for a granny flat would be 450sqm and the dwelling would need to be no more than 80sqm. Adding a granny flat is subject to council approval and it's important to ensure you have separate metres and garbage bins for both tenants to avoid confusion and conflict. If you are contemplating adding a granny flat, start a conversation with your Property Manager to find out the pros and cons of a dual occupancy property.