Renting a Property in Sydney? Here Are Three Ways to Maximise ROI
Are you a property investor in Sydney with your eyes on the rental prize? According to the latest figures, Sydney’s vacancy rate is just 1.3% which makes it a competitive market for those looking to enter the industry. With low vacancy rates and high rental prices, the demand for rental properties in Sydney is huge.
That doesn’t mean Sydney’s landlords aren’t working hard to make their property profitable. In fact, they’re working harder than ever to stay ahead of the competition and maximise their ROI. With that in mind, here are three ways to maximise ROI.
Add an Ensuite
Worried about sharing your bathroom with guests or children? So is your pool of potential tenants. Add an ensuite for a touch of luxury and privacy. It enhances the value of your home and makes it more functional and convenient. An ensuite can radically transform mornings in a multi-person home, so an ensuite alone will attract far more potential tenants. It also allows for more luxury elements you wouldn’t include in a family or guest bathroom, which could be a draw for some.
Invest in Sustainability
Tenants are actively searching for more eco-friendly homes, and for landlords looking to charge a premium, this might give you the cutting edge and the ROI you’re looking for. Options include water-saving fixtures (dual-flush toilets, low-flow shower heads), energy-efficient appliances for lower bills, and solar panels or heat pump hot water systems to combat rising electricity costs.
There may be government rebates available with solar panel installation, just to sweeten the deal.
Install a Dishwasher
Nobody enjoys being the designated dishwasher, which is why installing a dishwasher is a great way to maximise your ROI. Prospective tenants (and later, buyers) look for features that deliver convenience, and a dishwasher is the appliance many people want. While dishwashers are considered commonplace now, rental properties haven’t caught up yet.
Protect Your Investment
You can install a luxury spa ensuite, a commercial kitchen, and a swimming pool and still struggle. Ultimately, the key to maximising your ROI is matching the features and amenities of similar properties in the area and price point and carefully screening tenants to find the perfect fit. Finding clean, respectful tenants who look after your investment is half the battle.
Many property management companies dissuade tenants from logging small issues, which can lead to major repair bills down the line. So, having a long-term tenant you can rely on is key. Once your tenant is in, be sure to conduct regular rent reviews to ensure you’re competitive and profitable.
