opinion
Helen Collier-Kogtevs

Rocket your rental income by $1,000 instantly - here's how

By Helen Collier-Kogtevs
1

In just a few simple steps, you can significantly increase your rental income and grow your wealth.

 

Blogger: Helen Collier-Kogtevs, Real Wealth Australia

We all know the value of a good tenant. They look after our valuable property assets and help us reach our financial goals by paying their rent on time.

But here’s where some investors come unstuck… They show appreciation for their tenants by not passing on any rent increases.

In my view, this doesn’t make good business sense. I believe that if you increase the rent on your properties regularly and keep it just below or at market value, then your tenant will not move.

They might move for other reasons, but it won’t be because you put up the rent, as an increase of $5 or $10 will not break the bank for your tenant, whereas the cost of moving might.

To really grow your wealth, you will need to increase your rental returns regularly. A $20-per-week increase translates to $1,000 over 12 months, which can have a big impact on your bottom line.

If it’s been too long between rental increases on your investment property, consider the following advice:

1. Check current rates

Browse the rental property market for similar properties in the area and consider where your property sits. Be sure to compare apples with apples by comparing properties that have similar features and benefits, and take note of the asking rents.

2. Confirm vacancy rates

Vacancy rates are important to know, because they tell you whether properties in your area are in demand or oversupplied. As a guide, a vacancy rate of less than three per cent is generally considered a “tight” rental market and above three per cent is considered “oversupplied”.

3. Chat with your property manager

After performing your own due diligence, it’s time to discuss your options with your property manager. They can provide on-the-ground advice about the current rate of enquiry and demand for your type of property.

4. Show appreciation

Keeping your tenant happy and comfortable is the best way to ensure they won’t move on. Maintain the property in good condition and respond promptly to repairs to ensure that your tenants appreciate the property and treat it as if it is their own. You can also send a card and a bottle of wine at Christmas as a small token of your appreciation.

I hope this helps you in boosting your rental income.

Read more: 

Were the experts’ predictions correct?

How you can come out on top if prices fall

4 things holding you back

Why your bank valuation is a little low

4 ways to be sure you're paying below marke

About the Blogger

Helen Collier-Kogtevs

Helen Collier-Kogtevs

Helen Collier-Kogtevs is a bestselling author, educator, speaker and property investor. Her passion for wanting to make a positive difference to people's lives inspired her to create mentoring programs that teach people how to strategically build a balanced portfolio of 10 properties in 10 years.

www.realwealthaustralia.com

promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%