A Property Investors Guide To Guaranteed Rental Increases

by | Sep 14, 2021 | How to Invest in Real Estate, Property Investment

Smart property investors know that while it’s nice to see our properties increase in value, none of us are getting rich from what a property is worth. What we really need is a guaranteed strategy for frequent rent increases. 

Rent is your weekly or monthly incomes from your property. And it’s an income you don’t work for.

It’s the absolute key to good cash flow and passive income, so it’s essential you are able to keep raising your rents at regular intervals.

But, what makes it possible for property investors to do this?

 

QUALITY OF LOCATION

Before you’ve even invested in a property, you need to know that location is a key factor in how much rent you will be able to charge.

In one way, it’s good to think about it as a simple equation of proximity. The closer your property is to something that people want or need to live by, the better rents you will be able to charge, and raise.

This might be proximity to the CBD, the ocean, or a train station that gets you into the city in less than 10 minutes.

Whatever it is, there needs to be a drawcard that will keep bringing people to that area and make it a location people want to live in.

Buy a property in close proximity to that drawcard, and you will be able to charge good rent rates and raise rates at regular intervals.

Remember, it’s easy to change a property once you’ve bought it. New kitchen or bathroom, or new air-con. But it’s impossible to change location. Once you’ve bought a property you can’t decide the location is all wrong and pick up the bricks and move them. Location is forever, so get it right. 

 

QUALITY OF TENANT

As a property investor you cannot expect to be able to charge competitive rent rates and raise them regularly, if you don’t have tenants who are willing and able to pay.

Again, the quality of your tenant will be influenced in part by location. Is there good infrastructure? Are there schools, industries, transport? Will the people who live here have good, stable incomes and prospects to improve their wages? 

If the answer is yes, you are likely to attract tenants who are willing and happy to pay for rising rents so they can live in the location that gives them the life they want.

 

QUALITY OF PROPERTY MANAGER

Imagine you have a suitcase with $1 million of cash inside. What kind of person are you going to entrust your money with? The cheapest, greenest guy with little experience, or the more expensive person with 10 years guard experience under their belt?

Smart property investors take their time when selecting the right property manager to care for their investments, and don’t just pick the cheapest option.

Good property managers will know when it’s time for you to invest in your property so that you can continue to charge the rent rates you need. During inspections (and beyond) they’ll look at the property from the sidewalk, as well as inside, taking note of what the tenants might need, as well as if they’re caring for your property properly. Good property managers know that happy tenants, who feel their needs are being met quickly and competently, will feel comfortable with a rise in rents.

You might need to pay a few more dollars for a decent property manager, but that small investment will ensure adequate increases. 

 

SUPPLY AND DEMAND

One huge factor that affects the ability for investors to raise rents is how supply and demand differ in your area.

The better the location, the more demand there will be for rental properties, meaning you can raise rents.

The reason this will be so important in the next year and beyond is a prediction that as soon as the international borders open, there is likely to be a significant rise in population and people needing places to live.

Australia is an attractive place to live at the best of times. But the way we have weathered COVID-19, could make people from all over the globe want to live here. And they will all need somewhere to live.

DEVELOP YOUR RENTAL STRATEGY

As an investor you need to put your business hat on and think about who is the end user and what is the core purpose of the property? 

If you’re not the best in the market, you’re not going to get the best. It’s that simple. 

As investors it’s in our best interest to keep making smart decisions around the real estate we own in order to meet our overall financial goals. Our team of property experts know exactly which assets are the best for you to buy based on your individual needs, as well as a solid rental strategy to help you maximise your property to ensure you’re getting the best rental return and tenants. 

 

You can join the discussion around this by registering for one of our free property nights, run by our knowledgeable coaches. At the same time, you’ll learn real-life strategies for long term investment, putting you miles ahead of other investors in the marketplace. 

 

This is a high-value event so booking a space is essential. Click here to register!

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Turning $80k into $800k

Turning $80k into $800k

Welcome to the first episode of Property Investor Tales – Stories From The Front Yard!

Each week I get to speak to property investors from around Australia about their investing journeys. As the head of coaching at Positive Real Estate, I’ve been fortunate to connect with thousands of investors who have a story to tell. My hope is that from these incredible investors, your own investing journey is made that little bit easier. 

Abe Pasilidis is my guest today and he has an inspiring story to tell. I won’t give too much away but listen out for an $80k investment has turned into $800k, plus a hilarious story of property management gone wrong (when you DIY). 

Enjoy this conversation with Abe!

Once you’ve listened to this episode, I’d love it you hit the subscribe button  so you get notified every time a new episode drops. 

As you can guess I love hearing people’s property investor tales so if you’d like to share yours then please get in touch with me via email at  propertyinvestortales@positivementor.com.au You can watch all of these podcasts over on YouTube at Positive Mentor or at positivementor.com.au
Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

The Biggest Lie of Investing Revealed

The Biggest Lie of Investing Revealed

You have been lied to… by you! Today we are talking about the biggest lie you have been telling yourself about real estate investment and your wealth creation journey. Want to know what it is? I could just TELL you, but then you wouldn’t learn. It’s embedded in this podcast – feel free to DM me when you think you’ve found it!

Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

20 Investing Lessons from COVID-19

20 Investing Lessons from COVID-19

What do you need to know about corona economics? We have learned a lot of lessons through investing during the pandemic, and I want to highlight some of those today. I have a list of 20 however I don’t think I’ll get through them all! I want you to walk away from this episode understanding what happens when real estate markets transform and what will happen if we don’t take advantage of the lessons that are right in front of us.

My Real Estate Pet Hates

My Real Estate Pet Hates

This episode is about all of the things in the real estate community that piss me off. From investors consulting clickbait on social media to predatorial real estate agents giving themselves fake awards, we are going to talk about everything that is wrong with the real estate industry that you need to know about as a property investor. Hopefully, after listening to this you will be able to avoid some of the most common pitfalls that property investors fall into during their wealth-building journey.

Why Do You Want to be Financially Free?

Why Do You Want to be Financially Free?

Will you survive the emotional roller coaster that is property investing? It takes time, money and commitment to create a portfolio, but sadly most who start out don’t make it, why? Well, let’s Wealth Coffee Chat!

The Only Time You Should Sell An Investment Property

The Only Time You Should Sell An Investment Property

The golden rule of property investing is to buy well and NEVER SELL. However, there are always exceptions to the rule… Firstly, let’s look at why you would keep an investment property? If you buy a great piece of real estate, in the right location, it will always create a passive income for you, so there will be no reason to sell it.

House vs Apartment – Which Is Better for Capital Growth?

House vs Apartment – Which Is Better for Capital Growth?

Many property investors favour one type of property – either apartments or houses. While there are pros and cons to both, which we will discuss here, one of the often forgotten advantages of houses is the investment you’re making not only in the bricks, but also in the land. Land value in itself increases over time, and investment in a piece of land also provides opportunity to renovate, subdivide and develop, all of which lead to greater capital growth.