Top 5 Factors That Impact Your Rental Yield

Your rental yield is calculated by dividing the total rent for the property by the property’s value. Maintaining a strong rental yield is important in securing income for a Landlord. These are the five key factors that affect your rental yield.

Location

Popular areas, such as those close to the CBD, can attract higher rents due to greater demand. Street traffic, noise, ease of access, and proximity to schools, shops and parks will also affect rent.

Property prices

When property prices go up, rental yields go down, and vice versa. Consult with your property management team about the market trends in the area as this will help guide how you price rent.

Vacancy rates

If property rentals are scarce in desirable areas, then rents will rise. These are places where vacancy rates are low. Likewise, if there is an oversupply of property rentals, rent prices may go down.

Parking

A property rental with secure parking will rent quicker and for more than a property without. When advertising your investment property, be sure to indicate if there is additional off-road or undercover parking as well.

Pets

There are pros and cons to allowing pets on your investment property and one of the benefits is being able to charge a higher rent. Be sure to speak to your Property Manager about how you can keep your property secure from pet-related damages in the tenancy agreement.

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