Maximising rental yield is imperative for owners of investment properties, but it can often be a challenging feat without the right guidance and expertise. Fortunately, property managers have the required skillset to maximise your rental returns – here’s how:

1. Marketing at a competitive price

Before taking your property to the market, your property manager will conduct a thorough assessment of comparable properties, economic trends, and the local demand to find a justifiable yet competitive rental price.

Not overpricing or under-pricing is a crucial step in maximising rental returns, as a step too far in either direction can be detrimental. If it’s priced too high you risk prolonged vacancy, if it’s priced too low there’s money being left on the table. Property managers skilfully walk the tightrope and ensure that your property is priced right from day one.

2. Validating high quality tenants

Property managers comprehensively screen potential tenants by doing an NTD (National Tenancy Database) check, verifying identification, employment and consistent income. This significantly minimises the chance that you’ll ever have to deal with the financial strain of having an irresponsible tenant.

With qualified tenants, you can expect a stable income and for the tenants to take care of your home as if it were theirs, ultimately reducing costs of repairs and concerns of damaging the premises.

3. Reducing vacancy periods

When your property is on the market, you ideally want to get it leased as quickly as possible, because every week that it’s not tenanted, is a week that you don’t receive the rental income. Property managers can minimise these vacancy periods between tenancies by strategically marketing the property to attract potential tenants.

Property managers ensure that the online listing is as attractive as possible by having professional photos taken, writing a compelling property description and pricing competitively yet profitably.

When the current tenant gives notice of termination, property managers begin advertising. They also coordinate final bond inspections, cleaning and repairs to make a seamless transition between tenancies.

Ultimately, with skilful marketing and streamlined turnover practices, property managers can reduce vacancy periods from months to weeks, substantially increasing your annual yield.

4. Maintaining the property’s value

The condition of your property has an undeniable correlation to its rental value and long-term profitability. Understanding the importance of maintaining your property’s condition, property managers safeguard your investment in several ways.

Property managers schedule routine inspections four times a year to identify and address issues that the tenants themselves may not even be aware of, including leaks, wear and tear, and pest infestations. Through routine inspections, property managers address these issues before they become expensive problems.

And with access to an extensive list of reliable contractors for any and every job, property managers ensure that all repairs and maintenance are done promptly and at a reasonable cost.

5. Keeping up with legal and regulatory compliance

There are many regulations and laws on the lease of a property. Navigating this everchanging legal landscape while staying compliant and avoiding fines can be difficult without the required knowledge.

Property managers are continuously updated and trained on the residential tenancy laws with relation to lease agreement, security bonds, rent increases and termination procedures.

They are well equipped to shield you from legal risks by ensuring you are fully compliant with the law.

This can save you a lot of money overall, as fines are commonly around $5,000. It can be a big hit to endure a fine like this, especially when it could’ve been avoided by having a knowledgeable property manager.

Conclusion

Boosting your rental yield takes more than just setting the right rent. It takes combination of many factors that are often overlooked by self-managing landlords.

Property managers are skilled in maximising rental yield through a deep understanding of the rental market and strategic planning. From achieving amazing rental prices and attracting high quality tenants to ensuring the maintenance of your property and navigating the complex legalities.

Investing in a good property manager not only boosts your rental yield but also creates peace of mind knowing that the process from start to finish is being taken care of by a knowledgeable, integrous and skilful individual.

If you’re ready to transform your rental property into a reliable source of income, consider partnering with a professional property management service.