Maximising your rental yields: What every landlord needs to know
As a landlord, maximising your rental yield isn’t just about increasing your rent—it’s about making strategic decisions to improve both your property’s appeal and long-term profitability. Here’s what you need to know to make your investment property perform at its peak.
What exactly is rental yield?
Rental yield measures your property’s annual income, expressed as a percentage of its total value. Simply put, it tells you how profitable your investment property is. To calculate rental yield, use this simple formula:
Rental yield (%) = (annual rental income ÷ property value) × 100
For example, if your investment property is worth $500,000 and generates $25,000 a year in rent, your yield is 5%.
How to calculate your property’s rental yield
Regularly Calculating your rental yield ensures you’re keeping pace with the market.
| Start by assessing your property’s current market value—either through an appraisal from a trusted real estate agent or by researching recent sales data.
| Next, calculate your annual rental income, subtracting ongoing expenses such as property maintenance, insurance, and property management fees.
| Steps 1 and 2 give you your net rental yield, a more accurate reflection of your property’s true profitability.
How to maximise your rental yields
Boost your yield with targeted property maintenance
A well-maintained property doesn’t just attract higher-quality tenants—it commands higher rent. Regular maintenance and timely upgrades protect your property’s value and ensure consistent rental income.
Here are some proven maintenance strategies:
| Cosmetic upgrades: Fresh paint, new flooring, and modern fixtures make a significant difference in tenant attraction and retention.
| Functional improvements: Prioritise upgrades that tenants value most, such as air conditioning, heating systems, or modern appliances.
| Outdoor spaces: Don’t neglect your property’s curb appeal. Simple landscaping can significantly enhance tenant perception and rental value.
Choose the right property manager
A skilled property manager can significantly improve your rental yield by optimising your property’s market positioning, streamlining the tenant screening process, and reducing vacancy periods. Property managers have market insights, understand tenant preferences, and can manage rent adjustments strategically.
A good property manager should:
| Conduct thorough market assessments to set competitive yet profitable rent.
| Provide proactive property maintenance and timely repairs.
| Quickly address tenant concerns to ensure tenant retention.
Strategic rent setting
Renting your property at the highest possible price isn’t always the best strategy. Overpricing your property can lead to longer vacancy periods, ultimately reducing your annual rental income.
Top tip: Price your property competitively based on market conditions, tenant demand, and the property’s unique features.
Regular market reviews
Consistently reviewing the local rental market helps identify opportunities to increase your rental income. Stay informed about trends in your area, competitor pricing, and tenant preferences.
Top tip: Adjust your strategies accordingly—whether it’s minor upgrades or rental pricing adjustments—to remain competitive.
Keep your tenants happy
Satisfied tenants stay longer, reducing turnover costs and periods of vacancy. Maintaining good communication, promptly addressing maintenance requests, and offering lease renewal incentives all contribute to tenant satisfaction.
For more in-depth advice, check out our recent guide on attracting and retaining great tenants.
Want to start boosting your rental yield today?
Improving your rental yields requires strategic decision-making, consistent property maintenance, and expert market knowledge.
Book a consultation today with our experienced property management team at Dimosons. We’ll help you maximise your investment returns and ensure your property consistently attracts quality tenants.
Contact Dimosons now and make the most out of your investment property.
Helpful links
Visit the links below for more info on leasing in NSW:
| Step-by-step guide
| FAQs
| Why choose Dimosons
