How To Increase Property Rental Income – Top 5 Tips
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Investing in property in order to have a rental income has always been a favorable business venture. Either as a monetary return type investment or as a means of having a consistent cash flow.
Rental yield in Malaysia has lowered recently and property owners are faced with new challenges. They can’t rely solely on location anymore but have to think of the tenants and their needs as well.
Property owners are wondering how to increase rental yield. Here are a few tips that can raise the rent for any property, regardless of location.
When fixing up a property to rent out, it’s best to have the tenants’ best interest in mind. Instead of spending on fancy chandeliers, fix the crumbling kitchen cabinets. Get rid of the squat toilet and install a modern bathroom with a shower or even a tub.
Change old wooden windows for modern metal ones that seal the cold air in from the Air Conditioning units.Consider what tenants are looking for. If a property has all the things they need and want, they will pay more for the rent.
A furnished apartment will always maximize rental income. Basic furnishings like beds, wardrobes, and sofas should be a no-brainer when showing a property to potential tenants. Adding more advanced appliances like a refrigerator, microwave, washing machine and kitchen utensils can greatly improve the chances of acquiring good paying tenants fast.
Considering the hot climate of Malaysia, property owners can raise their rental income instantly by installing AC units or good quality ceiling fans.
Split Up The Property
If a property is quite large, with two stories or more than four rooms, consider splitting it up into more than one rentable unit. Split it up so that it can be rented to more than one tenant.
Rental yield can increase by leaps, with the combination of more units, strategic renovations, tasteful furnishings and the installment of good quality Air Conditioning units.
Cater To Pet Owners
More and more potential tenants have pets. Many buildings and blocks of flats prohibit the ownership of cats or dogs, so why not offer a pet-friendly alternative? When renovating and furnishing a unit to be pet-friendly, consider stronger furnishings and balcony rails that protect small animals from falling over.
When renting to tenants with pets, have clear agreements that the animals should be trained. In return, the tenants will be happy to pay a premium price for a place that can accommodate their pets.
Consider Short-term Leases
Another way of maximizing rental income is to increase the number of tenants. Not by splitting up the property into lots of units but rather by renting the place in short-term leases. With the rise of tourists arriving to Malaysia and renting apartments instead of hotels, this is a great opportunity. If you are interested in the lowest foreign investment in Malaysia, click this link .
If a property is close to busy tourist hot spots, the rent can increase substantially for rentals of a few days instead of months or years.
By following these simple tips, a property owner can increase not only their rental income but also their ranking in the property market. Tenants will always pay more for what they like. Now more than ever, it’s about the renter’s needs and how to keep them happy and paying more rent.