How to maximise ROI on a rental property
There are a number of ways you can help maximise your return on investment for rental properties.
1) Have it occupied as much as possible
Rental yield calculations are based on the amount you earn in a year. The more you utilise your property to generate rentals, the higher your rental yields.
Instead of leaving it vacant and missing out on your potential rental, consider a slight decrease on rent to encourage a long-term tenant.
2) Plug the gaps with holiday rental
Short-term holiday rental can be a quick-fix solution to buy you time for searching a mid-long term tenant. Switching between short and long term stay nimbly could generate a maximised rental yield for your property.
As long as it doesn’t breach the laws of your residency, state, or building, then a short-term holiday rental could ensure an income when tenants are scarce.
3) Choose a cheaper property
While it might be tempting to buy a luxury condo for your first rental property, an affordable apartment may very well be a better choice.
While the total value of rent may be lower, it may be easier to rent your property out. Back to point 1, the more your property is rented out, the rental yield itself could be far more favourable.
4) Buy in a favourable renting area
With changing lifestyles, there’s no doubt that living in rental properties is an attractive proposition, particularly for younger age groups.
That means rental properties in areas that are favourable with younger demographics could be a smart choice.
That’s particularly true of areas with reliable short-term populations such as LRT, MRT, educational hubs and near major universities.
5) Make it look good
Don’t forget to market your property as well as you possibly can! The first thing your tenant see on their searches are the photos of your unit.
That means make it clean and smartened up, add a good variety of photos that show it in a positive light, is the first step to attract your tenants for a viewing.
Do note that renovating and decorating could be different for rental and your own stay. Spend wisely for a better ROI without overkilling with expensive features, yet you want to make sure that the outcome is attractive and memorable.