Rent is usually a set price range, based on what similar properties in that area have recently rented for. Rent is set by the market. This may seem obvious, but when investors need a certian level of income to cover ther costs, they will often find a way to justify asking higher then market rent.
This is how the market sets the rent - If a 3 bedroom property rents for between $500 and $550 per week, and a 4 bedroom property rents for between $560 to $610 per week. Then you can't expect to get $560 or more per week for an average 3 bedroom property, as it will be in competition with 4 bedroom properties. And who would want to rent a 3 bedroom property for the same price as a 4 bedroom property? This is a simple way the market sets price ceilings.
Now that you know the market rent, we can look at ways to get more than market rent. One simple way is to allow a pet, not any old pet. It must be for the right applicant. Pet owners find it very hard to find pet-friendly rentals, and will often pay a premium to be allowed a pet.
Another way is to have the property fully furnished. But this only works in high-density apartment living were moving furniture in and out of a building can be difficult, and tenancies tend to be short term, as they will be free to move out without the hassle of moving furniture.
Another simple way is to have tasteful yet simple and low cost design elements. For example designer curtains in the living room and designer light fittings that were on trend, helped me achieve above market rent, and I had 15 applicants to choose from.
A good renovation also increases a property's appeal, with focus on the bathroom, the kitchen, the size of bedrooms with wardrobes and having good storage. Topping it off with a fully fenced section and sufficient car parking. With this in place, extras would be a heat pump and a garden shed for the lawn mower and gardening tools. This will help you achieve the most rental income any time of year.
I have project managed renovations for my own rental which increased its rental income buy $100 per week. I’ve also project managed renovations for my clients. If you would like someone to run over your plans with you, I’d love to hear from you. Send me an email or call.
Patrick Rankin
