How to Increase Your Rental Income
Are you a landlord wanting to increase the rent on your property but are unsure how to go about it? You may be in luck. A recent report from the Real Estate Institute of Western Australia (REIWA) indicates that the rental market in Perth is on the road to recovery for 2018.
Are you a landlord wanting to increase the rent on your property but are unsure how to go about it? You may be in luck. A recent report from the Real Estate Institute of Western Australia (REIWA) indicates that the rental market in Perth is on the road to recovery for 2018. With February having shown a significant reduction in vacancy rates, it is only a matter of time before we see rent prices increase.
If you’ve identified that your property is under-priced, and you feel it is appropriate to increase the rent, we have a few tips for you on how to effectively navigate through this process.
Am I allowed to increase the rent?
The laws relating to rent increases vary, depending on the type of tenancy. This may include the following:
If a tenant is on a periodic lease, the rent can’t be increased during the first six months of the tenancy and six months must have passed since the last increase.
Fixed term tenancy
If the tenant is on a fixed term tenancy, the rent can’t be increased during the first six months of the tenancy, six months must have passed since the last increase and the rent can only be increased if specified in the lease. The lease must specify how much the rent increase will be or how the rent increase will be calculated (e.g. CPI).
In either case, the tenant must be given 60 days’ notice in writing.
How can I increase my rent price?
- Carry out small improvements on the property
For a small investment of around $2,000 to paint an apartment, you could increase the value of your rental property by $20 per week. We recommend a repaint at least every five years. In order to increase the appeal of a house, simple tasks like adding a layer of mulch to the garden beds can make a difference.
- Maintain your property
If a property is well maintained, it is more likely a tenant will continue to renew their lease and will be less likely to object to an increase in rent.
- Invest in marketing
A solid marketing strategy, including professional photography, usually results in an increase in people looking at your property online. Your property will become more appealing and generally will rent faster at a higher price.
- Find a good leasing agent
Most tenants aren’t able to view properties during office hours. By finding an agent that works weekends and evenings, tenants are more likely to choose your property over others, and are more likely to pay a higher premium for your property. A good leasing agent will be trained in negotiation and sales techniques, and will be able to sell and negotiate on your behalf to achieve the highest possible rent price.
By following these tips you can eliminate some of the angst from raising the rent, and you’ll be able to increase your profit from your investment property in no time. For a complimentary report on what rent you could achieve contact Blackburne Property Management today.