Maximising rental income is not just about charging the highest possible rent. It is about minimising vacancy, attracting quality tenants, and making the right improvements at the right cost. Here is a practical guide to getting the most from your investment property.

1. Price Rent Correctly From Day One

Overpricing rent leads to vacancy. A property sitting empty for three weeks costs more than accepting $20 per week less. Get a rental appraisal from a local property manager who knows your suburb’s current supply and demand. Then price at or slightly below the top of the market to attract quality tenants quickly.

2. Presentation Matters More Than Most Landlords Think

Clean, well-maintained properties attract better tenants faster. Before listing, ensure the property is freshly painted if needed, all fixtures are working, the garden is tidy, and professional photos are taken. The cost of good presentation is almost always recovered in faster leasing and better tenant quality.

3. Choose the Right Property Manager

A good property manager will achieve market rent, minimise vacancy, and maintain your property proactively. A poor property manager will undercharge rent, miss maintenance issues, and cost you money through neglect. The management fee difference between a 7% and 9% manager is far less significant than the performance difference.

4. Make Smart Upgrades

Not all upgrades increase rental income equally. The improvements with the best rental return are typically:

• Air conditioning — adds $30 to $80 per week in most Melbourne suburbs
• Dishwasher — inexpensive to install, expected by most tenants
• Updated kitchen — can increase rent by $50 to $150 per week depending on suburb
• Secure parking — highly valued in inner-city locations
• Updated bathroom — strong impact on tenant demand and rent achievable

5. Review Rent Annually

In Victoria, landlords can increase rent once per year with 60 days notice. Many landlords fail to review rent annually and fall significantly behind market rates over time. A systematic annual review keeps you at market without creating sudden large jumps that upset good tenants.

6. Minimise Vacancy

The most expensive time for a rental property is when it is empty. Start the re-leasing process 60 to 90 days before the end of a lease. Offer lease renewals to good tenants with a market rent increase rather than risking vacancy.

FAQs

How much can I increase rent by in Victoria?

In Victoria, rent increases must not exceed a prescribed amount linked to CPI. As of 2026, the maximum rent increase is CPI + 5%. You must give 60 days written notice and can only increase rent once per 12-month period.

Is it worth furnished vs unfurnished for rental income?

For most long-term rentals in Melbourne, unfurnished achieves better long-term returns. Furnished properties attract higher weekly rent but have higher vacancy rates, higher maintenance costs, and shorter tenancies.

How Collings Property Advisory Can Help

If you are buying an investment property and want to ensure you are purchasing at the right price with the right rental fundamentals, Collings Property Advisory can assess the property, analyse comparable rents and sales, and negotiate on your behalf for $4,500 + GST. Learn more at collings.com.au/portal.