Guest Blog – Maximising the Return of Your Investment Property
- October 31, 2018
- by Endorphin Wealth Management
When we talk about maximising the return on your investment property, we’re referring to several factors that should be considered when calculating your rental income over a 12 month period. It’s not just achieving the highest rent, although this plays a big part, there’s also many other aspects to take in to account.
Is there an oversupply problem?
As an investor, you are more than likely aware that Melbourne’s inner city has seen a huge growth of the number high-rise developments, creating the idea that Melbourne now has an oversupply of dwellings. The good news for investors of these properties is that the tenant demand is still strong, keeping up with the increased supply (it is estimated that Melbourne’s population grew by about 120,000 people last year). The bad news is many investors aren’t taking advantage of the current market conditions and just settling with the advice of their current agency, that there are “too many properties and no room for an increase of rental”.
Getting the best return relies on your agent devising an effective strategy so that your property is best positioned in the market to achieve the highest rent with little to no vacancy period. Below are some of the most effective ways we ensure our landlords are taking advantage of Melbourne’s growing demand for rental properties and maximising their return.
Strategies to maximise your return
The first quarter of the calendar year has always seen an approximate 300% increase of tenant activity. There is no rule to say you have to look for a 12 month lease, if we can work with your tenants to negotiate a longer lease that is more favourable to you then we’ll do it. The main goal being to end the lease in ‘peak-season’ for enquiry. So for example if your property needs a tenant in July try to secure a tenant for a 19 month lease.
Having the best marketing including professional photography, a great written description and a walk through video are key to getting more people clicking on your ad and attending inspections. It is also crucial that the type of ad your agent uses is of the highest quality to ensure that potential tenants are seeing your property before others in the area. If there is high demand from tenants to view and apply for your property, it will translate in to higher rent and lower vacancy.
Vacancy / No Vacancy
Often the cost of a vacancy period between tenants can dramatically reduce the rental income for the year, making it very difficult to maximise the return of your investment property. We start our leasing campaigns sooner with the co-operation of our tenants, which is much more effective than showing potential tenants through a property full of boxes. We also accommodate private inspections in addition to our opens, via our online booking system. The more accommodating and helpful we can be to potential tenants, the better the outcome for our landlords.
Questions to ask when choosing an agent or to assess if you’re maximising the return on your investment property include:
1. In the past year has my agent recommended a rental increase?
2. Does my lease agreement with my tenant expire between January to March?
3. When there is a changeover of tenants, is there a period of time when the property is vacant?
4. If there has been a new property manager assigned to your property, have they taken the time to familiarise themselves with your property and the area?
5. Are there any minor works my agent could handle to ensure the property is presented to the highest standard and set my property apart from others in the area?
Comprehensive analytics and research
Endorphin Wealth Management invests a great deal of time and effort researching the best investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.
The investment landscape always evolves and it is more important than ever to consider your investments and carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your goals. We want our clients to get on with enjoying their life rather than worrying about money.
- January 2019
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- October 2017
- September 2017
- August 2017
- July 2017
- May 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- September 2016
- July 2016
- June 2016
- May 2016
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- December 2014
What our Clients Say
Robert Rich is a gun and has been a pleasure to work with, he spent a lot of time asking questions and listening to both my husband and I to get a deep understanding of our current financial situation of who we are and where we want to be. His advice has been comprehensive and easy to understand. The genuine interest and enthusiasm he has demonstrated has made the whole experience to date, fun and engaging (it has also been awesome to see some great financial results!). Rob is a great communicator and is always available to chat, meet up or respond to an email. We wish we had seen Rob earlier, and plan to have him as our advisor now and into the future, I have and will continue to recommend him and his services.
- Ellen Bond
Rob has been fantastic helping us set all our financials in order. We didn't want to have to worry about any of this stuff day to day. Rob put together a set and forget strategy that will see us in good shape for the future. Good guy, good advice, great help. Thanks again Rob
- Andy Wright
My husband and I had a wonderful experience with Rob. He is genuine and honest. He has done amazing things with our finances to ensure our future is set up the right way. He has gone above and beyond our expectations. I highly recommend Rob, he is an expert in his field.
- Anthea Husing
love working with Robert. He is highly skilled, practical and empathic. Nothing is a problem and he goes ‘above and beyond’. I have no hesitation in recommending Robert as an excellent financial advisor.
- Rebecca Carter
Robert has managed our finances over the last 12 months as if they were his own. He has an eye for detail and is incredibly enthusiastic. We have recommended him to all our friends & family.
- A. Miles
Rob has handled our finances for some time now. He provided us with sound advice and options. I highly recommend his services.
- Mathew Quinton
Robert Rich provided me excellent financial advice and assistance in finding the right insurance for me. He was incredibly patient, and I'd recommend him without hesitation.
- Edward Murrell
Rob has been helping me with my finances for just over 12 months now and i couldn't be happy, he is a wealth of knowledge and is amazing at what he does.
- Paul Scott Ray White
Phillip and the team provide quality advice. They carefully explain the available options and clearly set the client's interests as the priority.
- Jon Sutton
Rob has provided fantastic advise and clarity to myself and clients
- James Ruddick
Great guys! Amazing financial advice.
- Jay Boston
I cannot say enough about their professional manner and would highly recommend anyone I know to seek their services
- Heather B
Your knowledge of the financial market is up to date and your approach to my portfolio has been proactive
- Michael S
Thanks to Endorphin, I am now on the path to that dream of mine
- Jake F
The plan has definitely made a big difference to my lifestyle
- Josie W
It has been quite exciting and very comforting to have Endorphin looking after my financial future
- Susan A
They provided me with a sense of direction and security that I did not have previously
- Michelle C