5 Easy Ways to Increase Rental
One of the best and safest investment choices that one can make is via property investment. It is mainly due to they’re 𝐭𝐚𝐧𝐠𝐢𝐛𝐥𝐞 and are likely to 𝐚𝐩𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐞 𝐢𝐧 𝐯𝐚𝐥𝐮𝐞 over 𝐭𝐢𝐦𝐞 (depending on the location and neighbouring boosters developments), and best of all, you can lease it out to generate a fixed income over time.
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Some investors are in the property game simply for capital gains while others are in it for the rental business because it provides them a consistent cash flow.
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However, rental yields in Malaysia have started to decrease lately.
The 𝐠𝐫𝐨𝐬𝐬 𝐫𝐞𝐧𝐭𝐚𝐥 𝐲𝐢𝐞𝐥𝐝𝐬 𝐢𝐧 𝐌𝐚𝐥𝐚𝐲𝐬𝐢𝐚 𝐡𝐚𝐯𝐞 𝐦𝐨𝐝𝐞𝐫𝐚𝐭𝐞𝐝 𝐝𝐨𝐰𝐧𝐰𝐚𝐫𝐝𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐫𝐚𝐧𝐠𝐞 𝐨𝐟 𝟑–𝟒%, 𝐝𝐨𝐰𝐧 𝐟𝐫𝐨𝐦 𝟓–𝟕% 𝐢𝐧 𝟐𝟎𝟏𝟏.
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As the property rental business gets more competitive here, landlords are gradually losing their negotiating power when it comes to rental.
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𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐜𝐚𝐧 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐣𝐮𝐬𝐭 𝐫𝐞𝐥𝐲 𝐨𝐧 𝐩𝐫𝐢𝐜𝐢𝐧𝐠 𝐚𝐧𝐝 𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐚𝐥𝐨𝐧𝐞 𝐭𝐨 𝐠𝐞𝐭 𝐭𝐞𝐧𝐚𝐧𝐭𝐬.
Instead they’ll need to look at other aspects to win tenants.
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It’s a renter’s market and here are some way you can please them:
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1) 𝐑𝐄𝐍𝐎𝐕𝐀𝐓𝐄 𝐖𝐈𝐒𝐄𝐋𝐘
Of course, the first thing that any landlord can do in order to raise property rentals is to ensure that their property looks new and refurbished.
However, not all types of renovation can bring in the cash.
Only with the right renovations can the landlord hope to raise his rental income.
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Don’t spend unnecessarily on interior designs that are less tangible and doesn’t guarantee an increased rental
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Places to put more money in:
🔹 Living room (where the first impression is when you walk into a unit)
🔹 Kitchen (happy wife, happy life)
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2) 𝐅𝐔𝐑𝐍𝐈𝐒𝐇 𝐓𝐀𝐒𝐓𝐄𝐅𝐔𝐋𝐋𝐘
A furnished property will certainly attract higher rent compared to an unfurnished property.
Basic furniture such as wardrobes, beds, sofas, dining table and chairs should already be available when you bring tenants in for a look at your property.
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𝐀𝐥𝐰𝐚𝐲𝐬 𝐫𝐞𝐦𝐞𝐦𝐛𝐞𝐫 𝐭𝐡𝐚𝐭 𝐲𝐨𝐮𝐫 𝐭𝐞𝐧𝐚𝐧𝐭𝐬 𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬 𝐚𝐧𝐝 𝐭𝐡𝐚𝐭 𝐲𝐨𝐮 𝐬𝐡𝐨𝐮𝐥𝐝 𝐚𝐥𝐰𝐚𝐲𝐬 𝐩𝐮𝐭 𝐭𝐡𝐞𝐢𝐫 𝐧𝐞𝐞𝐝𝐬 𝐟𝐢𝐫𝐬𝐭.
Considering how hot and humid Malaysia is, a landlord that installs ceiling fans AND air-conditioning will definitely score brownie points that will translate to higher rental.
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Other appliances such as a washing machine or a refrigerator will not only tempt a possibility of a higher rent but will help you secure a tenant in a jiffy!
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3) 𝐑𝐎𝐎𝐌 𝐑𝐄𝐍𝐓𝐀𝐋𝐒
You can also rent out your property to multiple renters to make maximum returns.
This not only maximises your potential income but also 𝐨𝐩𝐞𝐧𝐬 𝐮𝐩 𝐲𝐨𝐮𝐫 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐛𝐚𝐬𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐫𝐞𝐝𝐮𝐜𝐞𝐝 𝐫𝐞𝐧𝐭𝐚𝐥 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐩𝐞𝐫 𝐭𝐞𝐧𝐚𝐧𝐭.
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You will need to make some changes here and there, add more furnishings and manage even more tenants, but in the long run, you’ll be able to realise your returns more quickly.
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Try to optimise the capacity of your property to maximise your income.
This is very 𝐢𝐝𝐞𝐚𝐥 𝐟𝐨𝐫 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐢𝐞𝐬 𝐢𝐧 𝐜𝐥𝐨𝐬𝐞 𝐩𝐫𝐨𝐱𝐢𝐦𝐢𝐭𝐲 𝐰𝐢𝐭𝐡 𝐞𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐢𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐬 𝐨𝐫 𝐨𝐟𝐟𝐢𝐜𝐞 𝐬𝐩𝐚𝐜𝐞𝐬.
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4) 𝐂𝐇𝐈𝐋𝐃-𝐅𝐑𝐈𝐄𝐍𝐃𝐋𝐘 𝐏𝐑𝐎𝐏𝐄𝐑𝐓𝐈𝐄𝐒
For parents, paying a little more every month for the safety of their child is money well-spent.
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Sure it’ll cost you a little more to make changes to your property such as choosing grills that prevents children from falling down from balcony and getting scratch-proof furnishings but in return you will be opening up your property to a wider market of tenants.
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Most importantly, ones who would be open to paying a premium for a place designed for them and their child.
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5) 𝐒𝐇𝐎𝐑𝐓 𝐓𝐄𝐑𝐌 𝐑𝐄𝐍𝐓𝐀𝐋𝐒
One new lucrative property rental business lately is known as the short-term rental tenancy.
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In other words, instead of the usual monthly or yearly tenancy periods, you’ll be renting out your place just for a couple of days.
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Shorter term tenancy will allow you to charge a higher daily rent compared to a longer term tenancy arrangement.
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If you can manage to secure consistent occupancy (close proximity with hot tourist spots), you may consider this option as your profits will certainly be higher at the end of the day.
However, do bear in mind there’s pros and cons to this method
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With these easy and practical ways, every landlord can optimise their rental income and make the best out of their investments!
If you need personal consultation on renting, do can consult :-
Call /Text / Whatsapp @ Ryan +6012-4049931