Is your Investment Property In Safe Hands?

Is your Investment Property In Safe Hands?

We believe it deserves to be.

Maximising Your Investment Property Income!

Investing in real estate is a great investment which virtually ensures profit through capital growth and of course the tax advantages associated with owning an investment property.

There are many ways in which an investor can maximise the income derived from their investment property.

Most investors think that the only way to do this is by asking for or achieving the highest possible rent.

There are several invisible ways in which the property investor can maximise the income of their investment property.

First is to have an annual program of reviewing and increasing rents to a figure just below market rent. This ensures not only a growth in rental income, but by setting rent just below market rates, you ensure that your tenant's perceived value and interest in your property is more than likely to remain for an extended time, therefore reducing the chance of vacancy and real loss of income & minimising the chances of having a non-income producing asset.

Another invisible way that investors maximise their investment property income is to tailor the lease term around the peak letting times of the year. Rather than having the standard 6 or 12 month lease term in place, savvy investors steer clear of standard lease terms and ensure that a lease term expires in the better letting periods of the year. In these instances, should the tenant vacate the property it will be on the market in a better re-letting period which in turn reduces days vacant and increases the opportunity of achieving a higher rental.

By tailoring the lease term, the investor is taking advantage of marketplace conditions to ensure a better continuity of income and ability to have a greater chance to increase cash income via a higher rent achieved in a peak letting period.

Also offering the tenant’s a further lease term at the end of the fixed term period – this will ensure continuance & less chance of the property becoming vacant – most investor/agents allow the lease to continue after the fixed term which allows the tenants to give notice to vacate at any time.

Maintenance: Reactive – attending to repairs when reported by the tenants will keep them happy & potentially prevent further damage occurring to the property for example un-attended water leak may cause damage to cabinetry.

Proactive – continuing to update the property when items become tired or stop working. This keeps the tenants happy & also keeps your property in good condition meaning that should the tenants vacate, it will be more desirable to potential tenants and won’t need lots of works to get presentable which will reduce the time the property is vacant between tenancies.

At Doyle Spillane we offer a quick Investment Property Health Check. To take advantage of our no obligation offer feel free to contact our Business Development Manager Joe Iemma on 0411 224 129 or email: joe@doylespillane.com.au