Top tips to increase your rental income to cover your investment loan

Published on December 7th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Even though it might sound a bit medieval, being a landlord is a profitable activity these days. It takes a lot of dedication and effort, but in the end it is completely worth it from different points of view, not just the financial one.

Seeing a building that apparently does not present a big value is always an enticing new adventure landlords seem to enjoy getting lost in. They nurture it, give it the proper arrangements and then, finally, get new people to settle in and take in all the profit you can get.

However, there are some ways through which you can increase your rental income even more in order to cover the investment loan that you have previously made. Here are some tips that should help you reach this purpose:

When displaying the property

When you know that some new potential tenants are about to come over and visit the property, you should take care and have it professionally scrubbed, so that it will literally shine. Tenants are looking at the level of cleanliness and they always want to feel like the space they have just stepped in is sterile.

Making the appointments

Avoid setting different appointment times for the tenants. Also, you should take about 5 days after setting the ads and let the phone calls to come in. Tell everyone to show the same day, at the same time. This is the same principle that applies when a seeling action of a common product takes place. When customers see the fact that there is demand, they will want it more than usual. It’s simply the human nature.

The appliances

This is another element that is going to draw the attention of the new potential customers. They love new appliances, so if the ones that are in your property do not look that good, measures should be taken.

Efficiency above all

If you have a carpet in your property, then you should think about removing it permanently and replacing it with a linoleum, for instance. There is a great chance for the carpet to deteriorate in the process, so in order to save up some money on the long term, you should think about making investments that are both efficient and resistant.

Get to the top

One way to do that successfully is to place a higher price for your property with approximately a week before listing it. For instance, if your property should be rented with $1100, then you should try and list it with a price of $1200. If during the first 5 days you will receive only a few of the inquiries you should normally get, then you can lower the price a bit. It’s important for you to try to get to the top, even though you might stumble a bit along the way, right?

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