Generate a healthy rental yield for your property investment with these simple steps.
You need a healthy rental yield for a successful investment. The rental yield is a calculation of how hard your property is working for you. To achieve this you need to consider a number of factors before you have even found a tenant. Like any investment it pays to do your homework. Take time to work through this guide to make sure that your property performs as its optimum.
1. Find a letting strategy that suits you.
As a landlord you can rent your property on either a short or long term basis. A short term let can be a matter of days up to six months, and long term is anything thereafter. Short term lets are attractive as they come with a higher price tag, but they come with extra management costs such as cleaning, changing tenants plus they could encounter more void periods. Simultaneously check out the competition and see if there is a gap in the market that you could fill. You need to do the best to make your property stand out from the other listings in order to let it quickly and start generating an income.
2. Plan in advance.
Just because your property is empty, does not mean that it will be ready for marketing. If you jump the gun and the property is not showing at its best, then it is likely that it will not let as quickly or it will for a lower rent. Take time to ensure the property is looking presentable and photographs well for marketing purposes to attract people to view. The more people that view, the quicker the property will rent but it only takes one person to walk through the door to want to secure it. First impressions are important, and properties that are in good condition tend to appeal to good quality tenants who look after the property during their term.
3. Think about your market.
If you are aiming for professional tenants in the centre of Kuala Lumpur then vicinity to the mass transit system tend to be a number one priority. On the other hand, families will want to be close to schools and outdoor areas for their children to play in. The type of property will completely dictate the market you are aiming for. Also a building that is well managed and maintained with good communal facilities will retain existing tenants and attract new ones. Some renters rent as they do not want the hassle of property ownership so you need to make sure their letting is effortless and smooth.
4. Don’t forget to check the competition.
You want to make sure your property is attractive against similar properties. Take a look online at Dot Property listings of available properties to rent to see where your property sits in comparison. Also call on real estate agents to find out what is happening with the market, what property lets will and generates the best rent. This also gives you a great insight into the experience of an agent that you can use as way to choose which agent you want to help let your property.