Thousands of property investors in Australia search for strategies on how to improve rental yield every month. If you own an investment property that isn’t delivering the returns you expect, boosting the rental yield is probably one of your main concerns.

The rental yield is essentially the annual rent your property generates, expressed as a percentage of its overall value after accounting for maintenance costs.

In the Australian property market, a healthy rental yield generally falls between 3% and 5%, depending on whether the property is located in a metropolitan or regional area, as well as the condition of the property itself.

The good news is, increasing rental yield doesn’t have to cost a fortune. Small improvements can make a significant difference. Below, we’ve outlined 11 practical tips that can help you increase cash flow and make your property more profitable.

1. Get Pet-Friendly

Since more than 61% of Australian families have pets, it makes sense to make the rental property pet-friendly. People who rent homes and have pets are generally willing to spend up to 14% extra for a residence that allows pets.

Some landlords are still apprehensive, although laws are becoming more and more friendly to tenants with pets. By permitting dogs and making sure the property is safe for them, you not only attract more tenants, but you also set yourself up to make more money from your rental. Always have tenant insurance to cover any harm that can happen.

2. Tidy Up Your Front Yard

First impressions matter. The front yard of your property acts as the initial handshake with potential tenants. Keeping it tidy by mowing lawns, pulling weeds, or planting low-maintenance greenery can dramatically improve appeal.

For character, think of adding native plants like succulents, or hedges. Simple improvements, like a new lawn or a tiny garden feature, can help you get better tenants and charge more rent.

3. Spruce Up the Backyard and Outdoor Living Area

A well-designed outdoor living space is highly valued by Australian tenants. With remote work becoming more common, renters spend more time at home and value having a functional and enjoyable backyard.

Add outdoor furniture, sun lounges, or even a BBQ to create a space tenants can enjoy. These additions make the property more attractive and can increase rental yield.

4. Refresh the Property with Light Renovations

Small changes can frequently make a big difference in how much rent you get. Think about making small changes like:

• Cleaning by professionals, especially in kitchens and bathrooms.
• Painting again with neutral hues like white or beige.
• Cleaning or replacing carpets.
• Changing the curtains and fixtures in the bathroom

These renovations are worth it, even if they only add $10 to your rent each week.

5. Modernise the Rental Property

People really want modern features. Make sure your home has sufficient electrical outlets and USB ports. In today’s digital age, tenants want things to be easy.

Installing NBN is a necessary since tenants frequently want a fast internet connection. You can even add smart home technologies like smart plugs, lighting, or digital assistants to make it feel more high-end. These improvements help your property get noticed from the rest of the rentals.

6. Add Storage Space to Your Investment Property

Storage is usually a good thing. Tenants like having a lot of storage alternatives, and turning underutilised spaces into storage areas can greatly increase the amount of rent you can charge.

Think about putting in built-in wardrobes, shelves in the garage, or new kitchen cabinets. Renters always want kitchens with big pantries or extra storage.

7. Upgrade the Rental Property with Complete Makeovers

Full makeovers can be the answer for people who want higher increases in rental yield. They are more expensive, but they generally give good returns. Some choices are:

• Putting in new floors, vanities, and fixtures in the bathrooms.
• Adding a second bedroom or office to the house.
• Updating kitchens and laundry rooms with new appliances.
• Putting up central heating or air conditioning.
• Providing a rental property with furniture.

These improvements can raise the rent a lot; furnished residences can fetch in as much as 20% higher rent.

8. Add Car Space to Your Rental Property

Parking availability is a major concern for many tenants. If your property lacks car space, tenants may look elsewhere.

In inner-city areas, secure parking is highly valuable and can increase rental yield substantially. Adding a driveway, off-street parking, or a reserved spot—where possible—will also increase the property’s long-term value.

9. Install Solar Panels

More and more tenants are interested in energy efficiency. Solar energy systems not only save renters money on their electricity costs, but they also make your house stand out.

Tenants may have to pay an extra $20 a week for a home that runs on solar electricity. Also, solar panels can make your home worth up to $10,000 more when you sell it, and they help the environment at the same time.

10. Improve the Safety Features of Your Rental Home

Tenants care about safety and are prepared to pay extra for a safe place to live. Adding security security locks, CCTV cameras, or screen doors to your rental property can make it safer and increase its rental value.

If your property contains a pool, it is not only nice to have a fence around it, but it is also required by law. Tenants are more likely to pay greater rent for residences that are safe since they can save money on insurance.

11. Hire a Property Manager

A real estate manager can help you get the most out of your rental income by suggesting improvements and renovations that will draw in good tenants.

They may additionally assist you get competitive prices for repairs and maintenance because they know people in the business. Their knowledge makes sure that your home stays profitable in the rental marketplace and gives you the highest return possible.

FAQs

1. What is a good rental yield in Australia?
A healthy rental yield in Australia typically falls between 3% and 5%, depending on property type and location.

2. How can I increase rental yield without major renovations?
Small upgrades such as repainting, improving storage, tidying the garden, or allowing pets can all increase rental yield without large expenses.

3. Do solar panels improve rental yield?
Yes, solar panels can boost rental yield by allowing landlords to charge higher rent while also increasing property value.

4. Should I hire a property manager to improve rental yield?
Hiring a property manager can be very beneficial, as they can provide expert advice, find quality tenants, and help maximise returns.

5. Is furnishing my rental property worth it?
Yes, furnishing can increase rental yield by up to 20%, particularly in inner-city areas where short-term tenants or professionals value convenience.