Make the most of tax deductions
You may be surprised to see what you’re missing out on when tax time rolls around. Before you lodge your next tax return, speak to a tax accountant that specialises in property investment. They might be able to find extra items you can claim tax on. You could potentially be saving thousands on the cost of maintaining your investment property.
Bank charges, body corporate fees, and insurance are just some of the items you could be claiming tax on. You might also be able to claim on maintenance services such as structural repairs, renovations, cleaning and gardening services.
Rent a fully furnished property
Furnished properties tend to attract a higher yield. Unfortunately, the downside is they can attract a high turnover of tenants. Brett Ribarsky from Property Managers Melbourne explains that furnished properties are likely to be more appealing for two major groups; corporate clients and international students.
Fully furnished apartments are highly sought after by international students due to their low maintenance requirements. With everything set up for them already, an international student can arrive at their fully furnished property without the need for a fit-out. This makes the transition to a new country and residence far easier than most other options. The same can be said for a corporate client on a temporary 6 or 12 month contract.
International students tend to be a high turnover tenant thanks to their studying habits. Some students only stay until their course is complete. This could be anything from one to three years. Just be wary before your tenant’s study period is up. If they leave at the end of a semester, there could be an entire holiday period from four months (November to March) of no rent being paid until a new tenant comes along.
Off-street parking and storage space
The more in-demand features your apartment has, the more wanted your property will be. Getting one of these wanted features is another one of those great ways to increase your rental income. Off-street parking and storage space are two of the most sought after features you’ll find amongst tenants looking for an apartment.
With limited room in an apartment, extra storage space is always going to be a highly desirable feature. Extra storage space usually comes in the form of a storage locker located next to an apartment’s designated car park. This storage is often used for items such as a bicycle that many would prefer to store outside of their apartment.
Off-street parking is another gem that will have tenants eyeing off your investment property. Particularly in outer city suburbs, curbside parking can be time-restricted or expensive to use. Off-street parking offers a fantastic lifestyle option for potential tenants who would otherwise have to rely on public transport or ridesharing services to get around their local neighbourhood.
Invest in a newer property
Look around at new property estates and you’ll discover plenty of potential for ways to increase your rental income. One of the best outcomes of buying a newly-built home is the reduction in maintenance costs. A newly built property from a house and land package shouldn’t require any hefty maintenance costs for at least the first ten years.
As always, do your research when purchasing a new property. Especially one from a new estate. Make sure there’s a healthy interest in rental properties for the area. Also, ensure you’re relying on a premium builder for your new home. Check the reputation of the builder and see what the condition of their nearby houses is like.
Rent by the room
Renting each room of a house is one of the most effective ways to increase your rental income. This strategy tends to work well when you have the right mix of tenants and location. But you will need a sustained interest in your property if you want tenants moving in after previous ones move out.
A perfect example of using this strategy is when you rent out a property near a university. When your property is near a campus, there’s a high chance you’ll get a sustained interest from students looking to move into that suburb. Most university courses can take anywhere from two to five years to complete. So there’s a good chance you’ll get long-term tenants if they’re happy with the property.
The potential for increasing your rental income is hard to ignore when you’re renting by the room. Consider the following scenario. You have a 4-bedroom house and the average rent for that area is $350 a week. You could get around this by renting each room for $120 a week. This would enable you to get a total of $480 per week. Before you commit to this strategy, make sure your local council allows it. Check if any boarding house regulations apply to your investment property’s suburb.