Ask any landlord if they’d like an extra $10, $20 or even $50 a week in rent for their property and I’m pretty sure I know what the answer would be. A very big “yes please”.
But arbitrarily putting rents up, just for the sake of it, is incredibly unfair on tenants.
Ideally, you want a rent rise to be justified and, where possible, the tenant should benefit as well.
You want it to be a win/win situation. One guaranteed way to increase your rent (and add value to your investment property) is to do some renovations between tenancies.
A lick of paint or new carpets can make all the difference.
I fully understand most landlords don’t have a bottomless well of cash to dip into, but it’s vitally important they listen to what the market is saying about their property.
Like buyers going through open houses on a weekend, potential renters are inspecting any number of properties looking for the ‘right fit’ and their opinions and feedback are invaluable.
Are they looking for a furnished property? Is the kitchen dated? Does the loungeroom need an air-conditioner or the bedrooms require fans?
Spending those few extra dollars can secure a quality tenant and a higher rental income.
For a small outlay, you can greatly improve the presentation and value of your property (with all the tax benefits that apply), you are guaranteed more rent will be coming your way, you most probably will have your pick of tenants and the one you select will feel at home in your property and will be happy to pay a premium or even commit to a long-term lease.
That’s a win/win/win/win result in my book.