As property prices continue to climb and salaries remain largely stagnant, many property owners/landlords are thinking of ways to increase the rentability of their units. While many will consider doing renovations, a new paint job, or even changing furniture and fixings, these things will cost you a tidy sum and might not be worth spending so much money on. A nice new paint job to make your unit look brand new is always a good option, but here are some other methods to increase your rental income without forking out a small fortune.
1. Budget for the bathroom
This is an often overlooked aspect by many landlords, but seriously, a nice bathroom can go a long way to help you rent out your unit. If the unit is in overall good condition, but just seems to lack that je ne sais quoi to attract a tenant, consider allocating a small budget to upgrade your bathroom and make sure the faucets, sinks and sprayers are in good condition and squeaky clean. Think about it – as a potential renter faced with a choice between two similar units at similar prices, which would you pick: the one with a dingy outdated bathroom, or the one with clean modern fixtures?
2. Arrange multiple viewings on the same day
When showing your unit to potential tenants, try and arrange a mass viewing on the same day, at the same time, instead of doing viewings one-on-one. Once your potential tenants see that they’re up against other “competitors”, the scarcity effect will kick in and they’ll naturally feel more drawn to your home than they might otherwise be. Talk about being limited edition!
3. Short-term rentals
You’ve probably heard of Airbnb, and considered listing your unit on the highly popular app. A great way for landlords to increase rental income is to allow shorter stays, but at a more expensive rate. Those who are commitment-phobic or who wish to rent on a short-term basis for whatever reason can do so – they’ll simply have to pay a premium to enjoy this flexibility! If you’re the social type, it will also help you get to know more people, both local and international.
4. Value-added services
Want to stand out from the crowd and make potential tenants take note of your property? Just hire a part-time cleaner to come over every fortnight or once a month, and charge your renter a little extra than what you’re paying your part-time cleaner. Most people will be too lazy to clean up their rented property, and will appreciate the service, while you get to ensure your property is properly cleaned on a regular basis.
5. Keep up with market rates
If you’ve got a long-term tenant who’s been with you for years now, chances are that you’ll forego rent increases as a gesture of goodwill. Yes, it’s a kind act, but what you’re essentially doing is throwing money down the drain. Imagine: if you are charging RM100 below market rate, that’s RM1200 less each year. It’s understandable to worry that the tenant may leave if you increase the price, but if you’re raising the rent to match market price, chances are they won’t move, simply because it is a hassle and involves a lot of time and money.
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