10 ways to attract great tenants to maximise your rental returns

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Great tenants are worth their weight in gold. Having reliable, quality tenants in your investment property means you can sleep soundly at night knowing that your property is in good hands and you are much less likely to experience hurdles along your road to financial freedom.

Below are some easy ways to attract tenants to your property

1.       Consider your demographics

Just like you did when you purchased your property, it's essential to keep demographics in mind when preparing your property for rent. Knowing who your target market is will allow you to target and prioritize where you put your effort. For example, if you're targeting a professional couple, including a gardener might complement their lifestyle, or if you are targeting families, having ducted air conditioning will allow the whole family to stay comfortable all year round.

2.       Keep maintenance up to date

There is nothing more disheartening as a tenant than reporting a fault to your property manager only for it to be ignored. Not keeping up with maintenance has three main issues. 

One, your property will begin to feel rundown and if your tenant decides to leave, you will have a harder time finding a new one. As a result, you may have a longer vacancy period and need to offer a below market rent to secure a new tenant. You will also have a hard time attracting someone who is willing to pay top dollar as they will prefer to live somewhere that is looked after.

Two, your tenant will feel resentful paying you rent while the maintenance goes untreated. They're paying you a substantial amount of money in return for living in a home that's in reasonable condition. These shouldn't be seen as requests from the tenant, but rather as them doing you a favour by advising you that the product you're renting requires some upkeep.

Three, it's generally more cost effecting to repair items as they come up rather than allow problems to compound. For example, repairing a leaky dishwasher is much cheaper and easier than waiting for it to completely fail and having to repair a flooded kitchen. Remember that these repairs are generally tax deductible as well so keep receipts for your accountant.

3.       Freshen up

Before you rent your property or in between tenants is a great time to give the property a freshen up. Replacing old curtains to bring in more light or giving a tired room a fresh coat of paint can go a long way to improving the feel of your property. There aren't many people who want to live in a tired old house and for not a lot of time or money it's fairly easy to give your property a quick once over.

4.       Get rid of old carpet

In addition to number 2, one of the easiest ways to transform a room is by removing old, stained carpet and replacing it with fresh carpet, floating floorboards, tiles or if you're lucky, polishing the flooring underneath. While this may cost you slightly more than a quick freshen up, the property and tenants will thank you for it.

5.       Air conditioning/heating

Australia is a land of extremes and it's very unlikely that your property will be located somewhere where heating, air conditioning or both aren't considered an essential item by most people. As a minimum, most people would expect a split-system air conditioning unit in living areas and the main bedroom however it may be more cost effective to install a full ducted system rather than individual units.

In addition to heating and air conditioning, it's also worth considering whether you can make the property more energy efficient. Installing things like insulation, double glazed windows, low energy appliances and water saving fittings will not necessarily immediately attract new tenants but will provide a comfortable place to live and reduced bills which will encourage them to stay long term and minimize the additional costs you incur when finding new tenants.

6.       Solar

Speaking of minimizing living costs for tenants, solar panels are becoming a way to separate your property from another. As the price of electricity continues to rise, tenants will be conscious of their ongoing running costs. Installing solar panels will help your property stand out from the crowd and will likely attract a higher rent as tenants factor in their reduced electricity bills into their budget. 

7.       Dishwasher

Dishwashers can be relatively inexpensive and a huge time saver. They also come in many shapes and sizes to fit into almost any kitchen. Whether you're renting to a family of six or a single person, it's likely that both will use and appreciate having a dishwasher.

8.       Pets

It's worth considering pets in your property. Many people consider their pets to be part of their family and would not consider moving somewhere without them, and they will likely expect to pay a premium for the privilage. While pets do come with some risks of damage the pros generally outweigh the cons. Properly screening tenants and including pet related clauses in your tenancy agreement are good insurance policies to help protect you from any downside risk and will allow you to open up your property to a broader number of potential tenants.

9.       Gardener

Hiring a Gardener for lawn care or regular maintenance isn't particularly expensive and provides a nice incentive for tenants who do not own gardening equipment, are time poor, or just don't enjoy yardwork. This also has the added advantage of knowing that you're property is being cared for regularly and won't become an overgrown jungle for you to clear up later.

10.   Kitchens and bathrooms

If you're wanting to really lift your property and are willing to spend a bit more money to lift your rental yield, there's not much that will put people off more than old bathrooms and kitchens. These can be cheaper than you expect to renovate if you get creative and will almost always allow you to increase your asking rent. Make sure you speak with your accountant about any major renovation work as you'll want to make sure you plan and record everything properly to maximise your tax deductions.

11.   Offer something unique

Nothing separates you from the crowd and intrigues a new tenant more than offering them some unique benefits that are unavailable through the competition.

A good example of this would be offering your property for rent through the ByPass Platform. Offering the tenant the opportunity to build up their track record will incentivise them to treat your property well and make payment on time, as well as giving them peace of mind that if they ever need to move out of your property they will be able to demonstrate their track record and be seen as a desirable candidtate.