Making Your Rental Property Stand Out in a Competitive Market

Are you taking advantage of the local real estate boom? Even if you invest in the most desirable regions, you can discover that finding a tenant is harder than you anticipated.

Trends bring saturation, and many of your fellow real estate investors may have acquired home to your rental's right, left, or across the street. So, how do you distinguish your home from the competition?

1. Invest in renovations tenants truly want

Any renovation to a rental property is it a good renovation?

Not exactly. Investing in improvements that will help your property move the needle is the key to maximising the value of renovations on your rental property. To achieve this, you must be aware of what tenants look for in a rental.

Once that's done, you have the opportunity to make improvements that could result in significant increases.

We list the top 5 requirements for tenants in a rental:

1. Built-in wardrobes
2. Air conditioning or ceiling fans
3. Internal laundry flexibility
4. Gas cooking
5. Parking or storage cage

Let's unpack these.

Add built-in wardrobes to every bedroom.

Your rental will stand out from the competition right away if it has built-in wardrobes.

But how should a great built-in robe look? Convenience, according to Leigh, is essential.

As a result, tenants have the freedom to modify each robe to meet their needs without having to purchase their own clothes racks or wardrobe solutions.

Do you need help with your property management? Klear Picture is a trusted accounting and bookkeeping company in Australia. We perform cheap and quick tax returns for individuals. You can give us a call on (03) 9998 1940 or email us on team@klearpicture.com.au

Install air-cons or ceiling fans

Which do you anticipate the tenant choosing? Which rental—the $450 one with air conditioning or the $420 one without it?

The $450 rental with air conditioning will typically be more advantageous. Renters are willing to pay more for air conditioning in their houses, according to a study of 1100 tenants.

Having ceiling fans in the bedrooms and air conditioning in the living rooms is a common choice among investors.

A split system air conditioner typically costs $960 to $4,000, but it might turn a 4-week vacancy into a 1-week vacancy, plus some additional rent. In this way, it eventually pays for itself.

Install internal laundry in a convenient location if possible

The demand for comfort and convenience is shared by tenants! According to recent polls, 62.7% of tenants are ready to spend up to $50 more per month in rent for homes with internal laundry.

Installing a clothes dryer is a quick and easy way to rapidly increase the appeal of any property, especially those with little to no outside area.

Installing a dryer mount bracket is a good idea. It significantly increases laundry space.

The normal cost of this rapid enhancement is simply a few hundred dollars, with models starting at $400.

Offer gas cooking 

Tenants prefer gas cooking over electric stovetops when assessing their options.

Although changing the size of your kitchen is difficult, you can encourage your tenants to embrace their inner Jamie Oliver!

Ensure your property offers parking and a storage cage 

Off-street parking and other storage possibilities are valued by tenants. So, if you're still looking for an investment property, consider using this as one of Leigh's investing advice.

2. Professional photography is a must-have

While we have no reason to dispute your smartphone camera talents, pros are much better at showcasing your rental in the greatest possible light.

Consider how a one-time cost like professional photography for your rental property can greatly speed up the process of finding a quality tenant. The difference between a tenant applying for the rental or simply clicking away can be determined by the quality of their amateur or professional images.

Avoid trying to save money by using subpar pictures because they frequently make a room appear smaller or darker. A wide-angle lens will be used by a professional photographer to capture the entire area, which will help a renter organise their space before the application stage.

Professional pictures cost between $100 and $300 each image, but you own them forever. They will, therefore, pay for themselves if they merely stop a vacancy for one week.

3. Upgrade and repair your property with preventative maintenance 

Leigh's final piece of advice to investors is to actively maintain your property. When the property is vacant in between renters during the pre-leasing phase, this is one of the greatest times to do it.

Consult your property manager to determine what needs to be upgraded, replaced, or eliminated. You'll be in a good position for a trouble-free tenancy if you take the initiative and make necessary repairs before your new renters move in.

Some major places to think about managing proactively include:

• Changing fly screens that need to be re-meshed
• Giving the interior of your building a fresh coat of paint
• Modernizing or updating your light fixtures (to keep your property up-to-date with the latest interiors trends)

The bottom line - how to increase the appeal of your investment property in a competitive market 

The truth is that every investment property is different and will need a special strategy to find excellent tenants. In order to receive the highest returns, it can be beneficial to hire a qualified property manager. This is especially true if you're having trouble finding tenants in a crowded market.

Everything You Need to Know About Property Management

Even though 80% of Australian property owners use a property manager, many are still unaware of the services a real estate agent should provide.

Whether you're a novice and just bought your first investment property or an experienced investor with a number of properties in your portfolio, there's probably still more you can learn to help maximise your earnings.

This guide has something for you no matter where you are in your investment property journey.

Continue reading to learn how to maximise your profits and master all aspects of property management.

Explaining property management

Both residential and commercial building management are included in the purview of property management. It encompasses all that is necessary for the management, preservation, and growth of an investment property. Everything can happen between the time you buy a piece of real estate and the moment you make the decision to sell it.

Property managers and real estate agents are the two primary options available for those looking to manage real estate in Australia. The owner of the investment property is capable of managing it on his or her own (known as DIY property management).

Myth: "Collecting rent is the only responsibility of a property manager."

A common misconception, to be sure! However, in reality, property management covers a great deal more than that. It is undeniable that some owners of investment properties believe that the sole service they are paying their property management to perform is just that one, and the fact that they believe this is an indication that they have a subpar property manager. More about that will be coming later!

To keep a rental property in good condition and ensure that the needs of the renters are met requires both an art form and a significant amount of labour.

Property management services include:

• Rent collection
• Locating (and removing) tenants
• Pursuing unpaid debt
• Preserving the property's condition
• Scheduling maintenance tasks
• Performing routine inspections
• Ensuring that the relevant state or territory's property rules are followed
• Managing finances
• Getting the property ready for leasing

By hiring a property manager, you can rest easy knowing that someone will look after your property in the event of an emergency.

Here are some additional advantages that a good property manager can provide in addition to the fundamental services mentioned above:

• Excellent local industry insights
• Familiarity with local rules and regulations
• Professionals with training who "know" what to do and how to react in any circumstance.

There are various forms of property management

Which one do you think best represents the truth?

Are there several categories of property managers, or do all property managers perform the same functions?

The latter is, on average, more correct; yet, I ask that you not accept it in such a literal sense.

There are a wide variety of property managers and services available, each of which can take on a variety of forms and appearances.

There are three primary industry subsectors, which are as follows:

• Management of commercial properties
• Management of residential property

Property management is undergoing change, much like any other industry. The management of residential property can be further subdivided into the following:

• Regular property managers
• Modernised property managers
• Owners of self-managed properties (DIY)

Let's go right into each category, shall we?

Why should I manage my commercial properties?

In a manner similar to that of residential property management, commercial property management is concerned with the supervision of commercial spaces that are rented to tenants.

These locations are not used as houses by the tenants; rather, they are used as venues to conduct business.

Properties that are commonly utilised for commercial purposes include:

• Industrial buildings
• Office spaces
• Shopfronts
• Shopping centres
• Storage facilities

Residential property management: What is it?

Property management for private or residential usage is referred to as residential property management.

Property management, in a nutshell, includes everything to do with real estate, from the time you buy a property until you sell it. In this guide, we'll mostly focus on this form of property management.

Real estate for homes includes:

• Apartments
• Duplexes
• Houses
• Terraces
• Townhouses

The greatest way to make money when investing in residential homes is to lease the property to tenants and collect rent. At this stage, a property manager enters the picture.

Regular property managers 

The typical property manager is the first sort of residential property manager.

These are primarily real estate companies that engage in the buying, selling, and management of real estate as a supplementary service or a separate enterprise. Think about Ray White and LJ Hooker when you think of these well-known figures.

Convenience is the primary factor that influences the decision of many investors when deciding whether or not to hire a property management. This is especially true in cases when the investor purchased the property from the same firm. You can enjoy the benefits of a well-known brand while at the same time establishing a local presence with the assistance of these companies.

On the other hand, these companies typically do not concentrate their efforts entirely on property management, and the employment status of property managers is subject to a high rate of turnover. On average, a property manager's employment in Australia lasts for only nine months before being terminated.

Because a lack of communication is a common problem among property owners, being suddenly transferred to new property management can leave you in the dark about important matters. It is also normal for traditional property managers to be responsible for as many as 150 different properties, which means that it is unlikely that your property will be their primary focus.

Modern property managers

There are currently a growing number of disruptors in the property management industry. These disruptors are challenging the status quo by delivering something fresh to the market. By adopting new models of business, such as heavily relying on various forms of technology, these companies want to improve their customer service while simultaneously lowering their prices.

Mobile apps, online portals, and live chat are examples of some of the more cutting-edge technological solutions that contemporary property managers use to improve data visibility and communication. Email and voicemail are the two primary modes of communication utilised by traditional property managers.

Increasing a property manager's efficiency can be accomplished by reducing the amount of time spent responding to emails, making phone calls, and performing other menial administrative duties. When costs are reduced, the savings can be returned to the owner.

Self-managing real estate (DIY property manager)

If you would rather try to take care of everything by yourself, another option available to you is to work as a do-it-yourself property manager. However, it requires a significant amount of effort, and there is also a somewhat steep learning curve.

It is a challenging job to manage everything on your own, from understanding what to look out for during inspections to preparing tenancy agreements and remaining up to date with leasing legislation. Managing everything on your own might be overwhelming.

If you own a large number of properties, have a job that keeps you busy full-time, or have real estate holdings in states other than your own, managing your properties on your own may appear to be an excellent method to cut costs, but it may require a significant amount of time and effort.

When it is done incorrectly, it leads to problems such as a high tenant turnover rate since you are unable to conduct routine inspections. This, in turn, leads to requests for the late or damaged property when the lease period comes to an end.

This is one of the primary reasons why eighty percent of Australian investors choose to work instead with property management companies.

Advantages of managing one's own investment property

The advantages of becoming a do-it-yourself property manager are:

• By avoiding employing a property manager, you save money.
• Total authority over all decisions and actions relating to your investment property
• Eliminating the middleman for your property makes it simpler to communicate with tenants and contractors for home upkeep.
• You may be able to do tasks more effectively than a property manager if you are an expert in real estate.

Disadvantages of managing a rental property yourself

There is a good reason why 80% of Australian investors opt to hire a property manager for their properties. These are the main reasons:

• Self-management of a property requires a lot of time. When you can hire a property manager to handle it for you for a few hundred dollars a month, it doesn't make sense to quit your job and become a property manager full-time.
• You must resolve conflicts and problems on your own. Making reasonable decisions in these circumstances is challenging due to the discomfort and difficulty in keeping emotions out of the equation.
• You don't have as much access to resources and information as a property manager has. For instance, you are unable to market your house on important property listing websites like Domain and rent.com.au, which receive the greatest traffic in Australia.
• You're not always in the best position to decide what to do. Property managers can find better solutions for certain problems by utilising their extensive network and knowledge. For instance, they can obtain you the finest estimates for property maintenance by using their network of reliable tradespeople.

What exactly does it mean to manage property?

What distinguishes a property manager from a real estate agent, then?

A paid expert who handles your real estate portfolio on your behalf is known as a property manager.

What is a property manager?

Take into consideration the following scenario: You, the investor, decide to hire a property manager to take care of your real estate on your behalf. They represent the property owner and serve as a mediator between you and the tenant, acting in your best interests.

They will see to the continuous maintenance of your rental property, allowing you to concentrate on other responsibilities in your life.

In a nutshell, the activities that are performed by a real estate agent and those that are performed by a property manager are completely distinct from one another. The real estate agent is in charge of managing all aspects of financing, bidding, and negotiating up until the point at which you acquire the home. After the property is acquired, the property manager is responsible for all duties up until the point where the property is sold. This includes the search for renters and the management of maintenance issues.

Duties and obligations of the position of property manager

The duties and responsibilities of a property manager change depending on the kind of services the manager offers and the provisions that are outlined in the management contract that you have agreed to pay for. Despite this, all property managers are responsible for a core set of responsibilities, which can be split down into four primary classes.

When it comes to managing your property, the property manager should have your best interests in mind at all times. This is the big picture.

The following is a brief outline of the important responsibilities that each manager of your property should effectively carry out while working for you:

1) Promoting your home

The manner in which you list your property will determine the types of renters who express interest in your rental.

Having access to a large pool of qualified applicants is the first stage in the tenant search process. You are, in essence, participating in a game of numbers. A prudent property management will have a strategy in place before they put your home up for sale in order to maximise the likelihood of a successful transaction. These things include the following:

• A thorough marketing strategy
• A fantastic written list
• High-caliber renters will be attracted by the property's presentation in professional images.

2) Selecting qualified tenants

Finding a reliable tenant for your property as soon as possible can significantly reduce the risk of experiencing issues in the years to come.

Advantages that come with having a reliable tenant:

• You're more likely to have stable income inflows because your property is less likely to have a high turnover rate.
• There will probably be less money spent on maintenance of your property.

3) How to manage your rental revenue and maintenance costs

One of the primary responsibilities of your property management is to maximise the return that you receive on your investment in real estate.

You may boost the amount of money coming into your business by maximising the yield on your rental properties. A knowledgeable property manager will be able to determine the rent that is most appropriate for your home by continually monitoring the market and recommending you whether to increase or decrease your rates.

4) Present in case of any issues

There isn't a single landlord out there that enjoys receiving maintenance-related text messages from tenants at 8 o'clock at night on a Sunday.

In addition to these qualities, an excellent property manager must be responsive and communicative. They will ensure that communication between you and your tenant is kept open and is carried out effectively at all times. This involves keeping you up to date on all topics pertaining to your property and reacting to any complaints or requests made by the tenant as they come up in a timely manner.