Rental Property Newsletter 3

Domenic Alvaro Posted on 01 Oct 2022

Tips, news, and inspiration for the savvy property investor

Are professional photos worth it for your investment property?

You only have one chance to make a good first impression with your investment property. As potential tenants scroll through their favorite real estate sites, your property needs to stand out and get people clicking to view more details. Professional photos are one of the easiest ways to draw great tenants to your property.Keep reading for an overview of why professional photos are worth the investment.

You rent your property faster

The idea of your online property listing is not only to get people clicking through from the search results page but for them to inspect the property and apply. It’s estimated that properties with professional photos rent 70% faster than properties that don’t have professional photos. With professional photos, you can turn a week of vacancy into the week a tenant looks at the property and moves in, making the investment well worth it.

Let’s consider an example: A property is vacant for three weeks with a listing price of $450 per week. So far, the landlord has missed out on $1,350 of rent. Professional photos cost from $160.00 for eight photos, including editing. The landlord decides to go ahead with professional photos, with the property relisted a few days later with the updated photos. Within 48 hours, a tenant has looked at the property, applied, and been approved. With an investment of under half a week’s rent, the property is leased in days, not weeks.

Professional photos get the lighting right

The fastest way to get a potential tenant scrolling past your property is with badly lit photos. Simply using a mobile phone or getting a property manager to use a camera means you don’t get access to the expertise of a photographer who can use lighting and composition to make your property look attractive.

Further, with a wide-angle lens, you can capture more of your property, so tenants know if their furniture and appliances will fit immediately.

You attract higher quality tenants

A high-quality tenant is discerning about their potential next home. Professional photos and well-written copy for your property listing will ensure you get interest from great tenants who will look after your property and pay their rent on time. And if you get multiple applications, your property manager can be selective about who they recommend to be your tenant.

Professional photos are a tax deduction, plus they’re reusable

As an expense related to managing your investment property, professional photos are a tax deduction. And even better, you can reuse your photos when it comes time to lease the property again or even sell.

While they might be an investment, professional photos will help you lease your property faster, attract quality tenants, and give you great marketing collateral to re-lease or sell your investment property in the future. If you’re considering professional photos for your property, talk to your property manager and see who they recommend capturing all of your property’s best and brightest features.

3 ways to make more money from your investment property

A quality investment property in a great location sets the foundations for success when you’re a landlord. Not only will your property lease faster than less desirable properties, but the capital growth can also make for a nice nest egg in the future. In the meantime, there are a few things you can do to make more money from your investment property. Below, we outline three things you can do to maximize the money you make.

Review rental prices regularly

Rental prices aren’t static. When the time comes, such as the end of a tenant’s lease, ensure you and your property managerassess whether there’s room to raise the rent you charge. Of course, the key here is being mindful of the market and not increasing the price so much that you end up with a long vacancy period.

To make sure the rent you charge hits the balance between being competitive in the market and helping you derive the most value from your property, check what similar properties in yoursuburb are charging each week. This exercise gives you an idea of what’s good value in your area and whether you are over or undercharging. And if you’re considering increasing the rent when you offer a tenant the opportunity to renew their lease, make sure you give them plenty of notice and abide by the relevant tenancy laws in your jurisdiction. Your property manager will be able to help you with this to make sure everyone is happy and everything is above board.

Keep your property updated

Refreshing your investment property doesn’t need to be expensive. Simple updates such as a fresh coat of paint or tidying up the lawns and gardens can help make a positive first impression on quality tenants. And if other items such as appliances are starting to see better days, consider updating these too. While it’s an upfront investment to update appliances, it can help you attract better quality tenants, and it’s a tax deduction too.

To minimize the time that you’re out of pocket for things such as spending on new appliances, consider making these purchases at the end of the financial year.

Be prepared for tax time year-round

You can maximize the value of spending on your property at tax time by keeping thorough records of expenses year-round. These records might include a depreciation schedule, documenting your interest expenses, invoices and receipts for all costs incurred for capital works, and receipts for deductions.

Owning an investment property is a great way to build wealth and generate cash flow. By being mindful of what you’re charging for rent, keeping your property fresh and updated, and maintaining detailed records, you can maximise the money you make from your property. If you’re looking for ways to make more money from your property, talk to your property manager to see if any of the options above are suitable for your situation and if they have any other ideas that will work for you.

For any further information about your investment property or any other real estate matter please don't hesitate to contact Domenic on 0420 417 779 or email [email protected]