It is a question which all rental property owners ask themselves. What should I charge a person for renting out my property?  The answer of course is that it depends.

If you have a rental property in a suburb which, for example averages $500 a week, it does not mean you should only look to charge at that rate out of fear the home may sit empty for a while.

Aim to make some changes and adjustments which will maximise the value and make it a more desirable home.

Here are five ways you could increase the rental return on your property.

1. Appearance

In this blog post, we talked about the importance of making a good first impression when listing your home for sale. Again, this is the best place to begin, as a lot of rental properties are now listed online, so the person's first impression will be based on how nice the home looks in the photos. Always try and get as much natural light in as possible because this will make the layout look bigger and brighter.

Make sure the outside of the house is clean and orderly, while fixing any minor repairs on the inside before inviting a client for a walk through. This will increase the rent return you can get, even if it is just a few dollars more. 

2. Add Value to it

You can increase the rental return by adding value to the home. This can be done through sweat equity on tasks such as painting the house, putting up a fence, creating a nice garden or building a deck. In the mind of a renter, they perceive the property to be worth more with these features than without them and are more likely to pay extra rent to enjoy these things.

3. Heating, Ventilation and Air Conditioning (HVAC)

Another way you can improve your rent return is by ensuring that the (HVAC) is in good working order. New Zealand can experience swings in temperature, so having a well insulated house and clean air go a long way as it provides that additional element of good health. Consider providing products which reduce condensation, as well as something like a heat pump for the living room. People are less likely to leave a house which has it's HVAC in good working order, saving you advertising and vacancy costs. 

4. Minimise the tenant's workload

If you present a large list of maintenance expectations to a client, they are going to be more hesitant to choose your home as a rental because it increases the demands on them above and beyond rent payments. Aim to keep the list as short as possible, so they do not feel overwhelmed if they decide to proceed further into the application. You could do this by doing most maintenance jobs yourself or hiring a professional to come in regularly to do these jobs.

5. Aim to increase the tenancy period

According to Barfoot and Thompson's investigation into the average tenancy length, the large majority of renters have been in their current property for less than two years. 

A long term tenant is ideal for a greater rental return, you eliminate the costs of advertising the property and covering the mortgage interest repayments while it sits empty. You can also build good rapport with the tenant and build a trust system which keeps them there even when you have increased the weekly rent.