No doubt about it – the Australian property market is still booming. Showing no signs of slowing down, the Aussie market has enjoyed a clearance rate of 70% nationally over the past few months and, thanks to investment and first home buyer concessions, 2020 looks to be off to a flying start already.
But it’s not just sellers who are riding the wave of success, with landlords standing to make a tidy profit off a high demand market with very little vacancy for renters.
So for owners looking to enter the rental market, or existing landlords who’d like to see just how much upside there is on offer, how can they make the most out of this opportunity? We’re going to dive into the top 5 ways to increase your rental return and take advantage of the market’s record demand with a few simple steps:
The more the merrier
It’s no surprise – the more bedrooms a property has, the more you can rent it for. Whether you convert a study or extra living/dining space, add an extension, or separate one large area into two smaller bedrooms, there are plenty of options to maximise the space your property has to offer. And with just one extra room, you can open up to an entirely new pool of renters for your property – going from a couple’s home or share house to becoming the base for a family with kids.
Who lets the dogs in?
Australia has one of the highest pet ownership rates of anywhere in the world, with 62% people having a furry friend within their household. This means that by opening up your property to be pet-friendly, you’re not just doing right by the doggos of the world, but you’re also accessing 62% of the market that would otherwise have had to pass you by!
There were 19.5 million vehicles registered in Australia as of 31st January 2019, with a population of just under 25 million. That means there’s a whole lot of vehicles out there, and not terribly much space to put them in buzzing hotspots – one of which the Northern Beaches are fast becoming. If you can open up space on your property for private parking, or can include a carpark nearby as part of your rent, you’ll immediately put your tenant’s mind at ease by showing them they’ll be saved from the dreaded ‘drive around the block for an hour’ when they come home from work each day.
Now, this option isn’t possible for everyone and is one of the more expensive ways to up your rental income in the long term, however, landlords can up their rent by between 25-75% if their property comes furnished. Whether your tenants are moving internationally and need to wait for months for their own belongings to arrive, or you’re renting to young students who don’t have furniture of their own, there’s a big market for those who want to simply move in without any added complications.
If, as a tenant, you’re not opting for a furnished property, the first thing you consider when you walk into a potential new home is – will everything fit? While it might not seem the most decorative or exciting feature in a new home, having ample storage can be a huge decider for singles and families alike who want to ensure the space is as liveable as possible.
Including some built-in wardrobes, communal cupboards, and maximising storage throughout the home will be a big winner when renters first walk through your doors.
Some of these options are free. Some require investment.
But one thing they all have in common? They are all features that future tenants are looking for when considering their next rental property. And if you can offer one or more that the competition can’t, you’re on your way to minimising your vacancy, at the right price point.