Buying a house as an investment property is a great opportunity to build your wealth. However, not all investment properties generate good rental yield.
To find a property with a high yield, you should start first by considering the location and the type of property. These are the most important factors although, if you find that the property is in disarray, this might repel prospective tenants and depress the rent regardless of position.
To ensure you’re getting the most out of your investment property, let’s look at the things you can do to increase your rental yield:
Renovate the house
The kitchen and the bathroom should be your main concern when renovating the house. Ideally, update the design, fittings and fixtures. This way it will attract more prospective tenants, increasing the value of your property and also the rent.
Make the house appealing to a broader market
You may like the pink walls or the bright-coloured carpet but remember, you’re not the one who’s going to be living in the house. Not all people will find pink walls enticing to live in. You should make the investment property appealing to a wider range of people by painting the walls in neutral shades.
Present the house well
How well you present your investment property will play a huge role in the rent you can charge. Make sure that your investment property is marketed well to your target renters. Remember, first impressions are important.
Check if everything is in good condition
Are there cracks on the wall? Leaks in the plumbing system? Inspect the house first before leasing it. No one would want to live in a house where plenty of things can go wrong. Additionally, you should maintain the property well to keep good tenants and hopefully increase rent.
Hire a good property manager
Having a property manager on your side can help maximise the value of your property investment. They can advise you on how to market your property, find good tenants, collect rent, manage evictions and handle maintenance issues, legal problems and more.
Get the right type of investment loan
You can check out our investment property loan packages so you can start investing to build your wealth today.