Property investment has been one of the better and safer choices that people do when it comes to investment as compared to investing in stocks or shares. Moreover property investment is tangible and will appreciate in the value over the years. More people are buying properties for investment purpose nowadays. With so many houses for rent in Cheras, are you also planning to rent out your property to earn some extra money every month? As the rental business in property is getting more competitive nowadays, landlords will need to make extra efforts to increase the rental yield. This article will guide you through some tips to increase your rental yield.
Tips to Increase Your Rental Yield
First of all, you will need to renovate your property if it is not in a good condition. In order to increase your property rental, you will need to make sure that your property looks refurbished and new as most people would definitely prefer a property that looks new and is clean. However, do note that only the right renovation helps in increasing the rental yield.
Focus more on the essential renovations that help in providing the tenant’s needs. Do not spend unnecessary money on renovations that do not guarantee the rental yield such as interior designs. Instead, you should spend money to renovate your kitchen or toilet that are old fashioned and have been there for a long time. This is also essential as it ensures the safety of your tenants. Hence, your chance of increasing your rental yield will be higher.
Furniture plays an important role in increasing your rental yield as well. That being said, a fully furnished property is definitely more attractive than a partly furnished or unfurnished property. Therefore, the rental yield for a furnished property will be higher than a partly furnished or unfurnished property. Basic furniture such as sofas, dining table, chairs, beds, and wardrobes should be readily available when the tenants visit your property.
Do bear in mind that the tenant’s needs should always be prioritised. Take into account little factors such as the weather and humidity of Malaysia. Since the weather in Malaysia is hot and humid, naturally you will need to install ceiling fans and air conditioners in your property in order to score extra brownie points that will greatly result in higher rental. Other electrical appliances such as refrigerator, washing machine and dryer are also essential in your property that helps in increasing your rental yield.
- Split and lease
You could also choose to lease out your property to a few renters to maximise your rental yield. Not only it helps to maximise your monthly rental income, it also helps in opening up the potential customer base.
If you could not manage to rent out the whole unit to a person, you could always try to rent it out to more renters, with minimal compromise on the tenant’s privacy. That being said, you will then need to make some adjustment or minor changes to ensure their privacies are being protected. You will also need to add in more furnishing to your property, but worry not, as you will be able to gain back the returns quickly.
- Pet friendly
Making your property pet friendly might be a little bit tricky and most people would definitely not allow pets in the premises. If you plan to make your property pet friendly, you will need to make sure your furnishing is pet friendly. In addition, you will need to have a set of clear rules with the tenants to ensure that the pets are already well trained to keep your property clean.
With a pet friendly unit, tenants will then have to pay extra for it. Sure you will have to pay extra in the beginning to make some changes in your unit to prevent their pets from destroying the walls or tiles at home, but in the long run, it is definitely going to be promising in terms of monthly rental income you will be receiving as most pet owners are willing to pay extra for the comfort of their pets.
- Short term tenancy
You could also introduce a short term rental tenancy instead of the normal yearly or monthly tenancy periods. You could choose to rent out your property on a daily basis. A short term tenancy will have higher daily rent as compared to a long term tenancy. If you cannot manage to find a long term tenant, you could always try listing your property on an online marketplace platform that offers hospitality service such as Airbnb.
In conclusion, it is not difficult to increase your rental yield if you follow the tips above. There are also other things that you could do easily without breaking your bank account. You will be surprised at how much you could save if you were to spend some time and do some minor renovations on your own.
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