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5 Fail-Safe Ways to Increase Gross Rental Value

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Increase Gross Rental value

Property investors not only expect a substantial increase in the gross rental value of their rental properties but they also want a property manager to attract long-term, high-quality tenants, but sometimes it feels like an impossible task, especially if the property owner doesn’t want to spend any money on improvements and/or maintenance. Why aren’t you receiving any suitable prospects for your investment property, even though your property manager is doing absolutely everything correctly? The reality is that with the current rental shortage where we see a surplus of quality tenants unable to find a home to rent, there’s not much competition amongst landlords with lots of homes fetching exorbitant rents. However, it is still vitally important to monitor the gross rental value of your property.

If and when the rental market turns (which it will), your investment home needs to stand out above the rest, appealing to more tenants that will pay more thereby returning the highest gross rental value. If not, potential quality renters may be unable to look past your property’s appearance, any lack of upkeep, and inviting inclusions they would expect in a home. It’s important to place yourself in the shoes of your potential tenant and consider what would make their life more pleasant and easy. Thankfully, we’ve compiled a list of the top five strategies to increase the value of your rental property without costing a small fortune.

Simple Inexpensive Ways to Increase the Gross Rental Value of Your Investment Property

1. Improve the Energy Efficiency of the Home
It’s no wonder that, with climate change at the forefront of our thoughts, tenants are looking for energy efficiency in their homes for greater peace of mind. According to a survey by PowerHousing, almost eight million Australian houses are not energy efficient. As a result, there is a significant market gap where simple, affordable renovations could make your property more appealing to prospective renters.

The most cost-effective option to improve energy efficiency in your house is to replace showerheads with low-flow alternatives that maintain the same pressure while substantially reducing water consumption. Similarly, replacing light bulbs with low-energy bulbs may significantly cut energy use. Installing solar panels or doing an energy efficiency assessment might improve the experience for renters renting your house if you want to go the additional mile. Just remember to mention these new features throughout the presentation!

2. Increase the Curb Appeal. Increase Gross Rental Value.
First impressions are believed to last a lifetime, and this is especially true with homes. A good first impression is formed in the first seven seconds of seeing a property or meeting someone, and it is exceedingly difficult to modify after that initial impression has been made. It’s also vital that your property manager makes a good first impression when presenting your property for rent by being professional, competent, and setting a realistic price for the home.

This may be accomplished by improving your property’s curb appeal so that potential tenants are immediately drawn to it as they drive by. While improving curb appeal may appear to be a large-scale restoration effort, it is rarely the case since simple things usually tend to make all the difference. A fresh coat of paint on the front door and a new door handle may help to create an inviting ambiance. Plants and greenery, on the other hand, are the most effective method to make a statement. Adding some pot plants at the front entrance is a cost-effective and time-saving way to do this. You may also like to read this blog post about easy ideas to create curb appeal.

Curb Appeal to Increase Gross Rental Value

3. Create More Storage Space
As we become older, we accumulate more “things,” which must all fit somewhere in our houses. According to research conducted by HSH, one of the most common pet peeves among homeowners is a lack of storage space. If a property doesn’t have enough storage, potential renters may see it getting cluttered, especially if there are youngsters.

However, the notion of adding extra storage can be perplexing and frightening, raising several genuine concerns. How do I increase storage? What kind of storage is it? It’s easy to feel overwhelmed. According to a poll, 60 percent of tenants chose more food storage, while 49 percent preferred closet storage. You may increase the value of your rental by concentrating on these two areas.

4. Invest in Quality Photography
As much as we all want to pretend to be self-taught photographers with our mobile phones, there is a significant difference in quality between a smartphone and a professional camera. As previously said, first impressions matter, and with online listings serving as the first point of contact for potential renters, it’s critical that your images showcase the property’s most essential features and amenities, demonstrating the additional value you’ve introduced.

There are a few things to consider whether you’re the camera operator or hire a photographer to assist you with the images. To begin, lighting is essential for effectively capturing a place, with the middle of the day being the best time to take photos owing to the strong light. You may, however, get creative and photograph the exterior of the house in the late afternoon to capture a gorgeous sunset or to highlight the outdoor lights. Here at Property Brokerage, we have our own in-house photographer and video tour creator that will ensure your property is well presented, thereby further increasing your home’s gross rental value potential.

It’s critical to open up the room to make it appear larger and more welcoming. This includes all curtains, blinds, doors, and windows being opened. Finally, photograph from shoulder or head height, as this is the height of most potential renters and provides the most authentic representation of the residence.

5. Declutter Before Showings
This may seem like a no-brainer suggestion, but it’s more about how you declutter than it is about remembering to declutter. We realise that your present renters will need to clean the home to make it appealing, but it’s also helpful to remove any personal objects from sight, since this may impede potential tenants from perceiving the house’s worth. It can be difficult showcasing a currently rented property to prospective new tenants because they are still living in the home. This is where file photos and/or a file video walk-through of the vacant property are ideal. The clearer and more clutter-free the primary living areas appear, the better!

So, there you have it: our top 5 failsafe techniques to boost gross rental value to your investment property just before a showing to ensure you keep and/or attract good tenants. Send us an email at sales@propertybrokerage.com.au if you’d like us to do a free rental appraisal on your investment home. Or if you’d just like more information about boosting the gross rental value. You’ll find plenty of reputable local trade services including plumbers, electricians, painters, gardeners, and handyman services over at Hervey Bay Real Estate Guide. We recommend them should you require any professional maintenance or works done.

Exactly What Does the Term Gross Rental Value Mean?

The Gross Rental Value, or GRV, represents the gross annual rental that a property might reasonably be expected to earn annually if it were rented, including rates, taxes, insurance, and other outgoings. For non-residential properties, GST is also included.

Property Brokerage Property Managers

Property Brokerage Property Management operates from our modern Urangan Hervey Bay office servicing both local Hervey Bay suburbs and outer municipalities including Howard, Burrum Heads, and the town of Maryborough.

Our Professional Property Management Guarantee

We provide a genuine and authentic professional property management guarantee. It’s not enough to just promise to do something; you must really do it. We give a precise list of service tasks for which we will not charge you anything should we fail to deliver.

Have a Hervey Bay Investment Property you’d like us to manage? Our team of dedicated property management staff are happy to assist you.

If you’d like to know more or would like a free rental property appraisal, do be sure to get in touch. Phone our office on 07 4125 6692  or via our contact page

You may also find these informative blog posts about buying and selling investment properties in Hervey Bay helpful as well.

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Booming Real Estate in Hervey Bay Investment Property Opportunities

 

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