Striking a balance between high rent returns and potential vacancies
Increasing an investment property's rental income is no longer as simple as raising the rent, which is a move that may well prove financially counterproductive for landlords.
It only takes a week or two of having a home vacant to erase the potential gains of a rent increase. (Image source: Shutterstock.com)
As rental markets start to cool in many parts of Australia, property investors are facing a familiar dilemma: should you hold firm on rent increases to protect returns or adjust expectations to avoid costly vacancies?
In a softening market, where supply outpaces demand or tenant affordability is strained, the wrong call can mean weeks (or months) of zero income from your investment property.
That doesn’t mean landlords should rush to slash ren…
