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Here are some easy ways to add value and subsequently increase the amount of rent you can hope to fetch from your rental property.

1. Professional photography

Have you ever looked at a ‘for rent’ listing online and cringed because the photos just don’t do it any favours? 89% of tenant decision-making when choosing what listing to look at is visual. A good first impression is critical to attracting the attention of discerning tenants. If you don’t use high-quality photographs, you risk deterring tenants who would otherwise be willing to pay a higher premium for a high-quality property.

Even an average quality rental property can be presented well simply by using professional photography which highlights key features of the property using the best possible lighting and great angles.

At Propertyscouts, we’ve found that properties advertised using professional photography generally fetch higher rental revenue for property owners and are quicker to rent. This means reduced vacancy periods and increased return on investment - making the tax-deductible cost of professional photography worth it in the long run!

2. On-street appeal

We can’t stress enough how important first impressions are. The appearance of your property has a direct impact on the amount of rental income it can produce and the quality of the tenants it can attract. If tenants like your property and can see that it has been well looked after, they will usually be happier to pay more in rent.

The good news is a full-scale exterior renovation isn’t necessary! If your investment property has a garden out the front, spend some time removing weeds, tidying up any garden beds, and keeping the lawn looking fresh. It’s also a good idea to clean windows and footpaths. If your property doesn’t have a garden out front, clean or throw a fresh coat of paint on the front door and add some greenery if you have space. A new door mat can also enhance street appeal and make it feel more welcoming.

While it can be hard to control the presentation of your property if it is occupied, incentives often go a long way in encouraging tenants to cooperate. You could offer the likes of a meal voucher in exchange for tenants keeping the exterior of the property well-presented whilst it is being advertised for rent.

3. Complete all maintenance

All maintenance needs to be addressed if you want to increase the rental return on your property. If you can’t keep your property properly maintained, how can you expect people to pay higher rent? By ensuring all maintenance is addressed you can attract and retain good tenants who, you guessed it, are willing to pay a bit more!

4. Consider making your property pet friendly

Pet friendly rental properties are always in high demand and low supply. As such, they can usually fetch more rent than properties that don’t allow pets. Also, whilst you can’t legally require a bond of more than 4 weeks’ rent, tenants with pets will often offer to pay more rent to compensate for any potential harm caused by their pet.

If you’re worried about pets causing damage to your investment property, you can mitigate risk by taking out a landlord insurance policy that covers pet-related damage.

5. Build a fence

Building a fence around your rental property is a game changer when it comes to increasing value. A fence significantly increases the marketability of your property and will attract the likes of families and pet owners. Fences also offer greater privacy and added security, something that is highly sought after by many tenants.

Why make an effort to lift your property’s rental return?

If you want to take one thing away from this article consider this - one of the factors that determines the capital value of a property (how much it is worth) is how much rent the property generates annually (gross yield). So, it stands to reason that if you employ the above tactics to successfully increase your property’s rental return, your property could also be worth more overall. 

If you’re unsure what the current value of your investment property is we offer free, no obligation, rental appraisals. Get in touch with your local Propertyscouts office for more information.

 

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DISCLAIMER: The above advice is written by Propertyscouts New Zealand (2020) Limited and is intended as a broad guide for educational purposes only. The advice should not be regarded as legal, financial or real estate advice. In all instances, you should make your own inquiries and seek independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.

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