How to increase rental yield on your Perth investment property

Key Takeaways

• Review your rent regularly against comparable Perth rentals — but remember WA law now limits increases to once every 12 months, so each review counts.
• Smart improvements such as fresh paint, cooling, security features, and outdoor spaces lift rental appeal and support higher returns.
• Keeping reliable long-term tenants protects cash flow and avoids the cost of turnover and vacancy.
• A good property manager in Perth helps maximise rental income through sharp pricing, quality tenant selection, and proactive management.

Perth landlords have had a pretty decent run lately, but strong rental yields don’t happen by accident. A property that sits vacant for weeks, falls behind on maintenance, or is priced poorly can quickly chip away at your rental income and long-term cash flow.

The investors seeing stronger returns usually aren’t making massive changes either. They’re keeping their rental property competitive, maintaining it properly, pricing it well, and making smart upgrades that tenants actually value. Revolutionary stuff, we know.

If you’re looking to increase rental yield on your investment property, a few strategic adjustments can make a surprisingly big difference to both your rental income and long-term investment goals.

What is rental yield?

Rental yield is the amount of rental income your investment property generates compared to the property’s value. In simple terms, it helps property investors understand how hard their property is working for them financially.

A property might look great on paper, but if the rental income is low or ongoing expenses are chewing through your cash flow, the returns may not be as strong as expected. That’s why rental yield is such an important part of any long-term property investment strategy.

There are two main ways to calculate it.

Gross rental yield formula

Gross Rental Yield (%) = (Annual Rental Income ÷ Property Value) × 100

This gives you a basic snapshot of your returns before expenses are taken into account.

Net rental yield formula

Net Rental Yield (%) = ((Annual Rental Income − Annual Expenses) ÷ Property Value) × 100

This factors in costs such as council rates, maintenance, insurance, strata fees, and property management fees, giving you a more realistic picture of your returns and cash flow.

1. Regularly review your rent against the local market

One of the easiest ways to increase rental yield is also one of the most overlooked: making sure your rent still matches the local market.
A lot can change in 12 months. New developments, low vacancy rates, improved local amenities, or increased demand can all push rent prices up. If you haven’t reviewed your rent in a while, there’s a chance you could be undercharging without even realising it.

Worth knowing: under the WA rental reforms that took effect on 29 July 2024, rent can only be increased once every 12 months for both periodic and fixed-term agreements. That makes getting each review right even more important – there’s no quick correction if you set it too low.

There’s also a fine line between keeping pace with the market and pushing rent too far. A big jump might look good initially, but if it leads to unhappy tenants or a longer vacancy period, it can hurt your overall cash flow. The key is sustainable increases based on comparable rental properties in your suburb – similar homes in terms of size, condition, location, and features give you a much clearer idea of what tenants are realistically willing to pay.

2. Reduce vacancy periods and keep good tenants

Every week without a tenant means lost rental income, ongoing expenses, and lower overall yield. That’s why keeping good tenants long term is often just as important as increasing the weekly rent.

Reliable tenants who pay on time, look after the property, and renew their lease can save investors a huge amount over time. Constant turnover, on the other hand, usually means extra advertising costs, cleaning, maintenance, and the risk of vacancy periods stretching longer than expected.

A well-maintained rental property plays a big role here. Tenants are far more likely to stay if issues are dealt with quickly and the home feels looked after. Nobody’s excited about renewing a lease when the aircon sounds like it’s preparing for take-off every summer.

Simple things – prompt communication, proactive maintenance, and fair rent reviews – go a long way towards tenant retention and protecting your long-term cash flow.

3. Make smart property improvements that increase rental appeal

Not every upgrade needs to be a full renovation with a six-week timeline and three trips to Bunnings every weekend. In many cases, the smaller improvements are the ones that lift rental income and attract better long-term tenants.

The trick is focusing on upgrades that improve comfort, convenience, and presentation without overcapitalising on the property.

A few improvements that can help boost your yield include:

• Fresh paint and updated lighting — a clean, bright property instantly feels more modern and well cared for.
• Air conditioning and ceiling fans — this is Perth. Enough said. Cooling is a big drawcard for renters, especially during those lovely 39-degree afternoons when it feels like the pavement is melting.
• Security features — security screens, sensor lights, smart locks, and alarm systems add real value, particularly for families and long-term tenants wanting extra peace of mind.
• Street appeal and outdoor spaces — tidy gardens, clean paving, and low-maintenance entertaining areas make a surprisingly big difference to perceived value.
• Storage solutions — built-in robes, shelving, and practical storage rank high on most renters’ wishlists, especially in smaller homes or apartments.
• Pet-friendly features — since the 2024 WA reforms, tenants can request to keep pets and consent can’t be unreasonably withheld, so pet-friendly rentals are fast becoming the norm. Durable flooring and secure fencing let you present yours as genuinely pet-ready and open it up to a much larger pool of tenants.

The key is making improvements tenants genuinely care about. Smart, practical changes usually deliver far better long-term cash flow than expensive renovations that don’t meaningfully increase rent.

4. Work with a property manager who knows the Perth market

The right property manager can play a huge role in improving your rental yield and protecting your long-term investment strategy — largely through the things that are hardest to get right on your own.

Perth’s rental market has started shifting towards a more balanced market in some areas, which means pricing, presentation, and tenant quality matter more than ever. REIWA considers a vacancy rate between 2.5% and 3.5% to be balanced, with some Perth suburbs already moving closer to that range.

That’s where local knowledge earns its keep. A proactive property manager knows what renters in your area are actively searching for, what rent is realistic for your suburb, and which features are worth investing in — so you can stay competitive without overpricing. They’ll also keep you on the right side of WA rental legislation, which matters more than ever after the 2024 reforms.

Strong property management typically means:

• Accurate, suburb-specific rent pricing and regular reviews
• Faster leasing and lower vacancy
• Quality tenant selection and screening
• Proactive maintenance coordination
• Compliance with current WA rental legislation
• Advice tailored to your local rental market

Aim for sustainable returns, not just the highest rent

Increasing rent can lift your yield, but chasing the absolute top dollar isn’t always the smartest long-term play. A reliable tenant paying consistent rent for years is often worth far more than squeezing out an extra $20 a week and risking a longer vacancy. The strongest yields come from balance – a well-maintained property, competitive rent, and tenants happy enough to stick around.

Need help maximising your rental yield?

Increasing rental yield doesn’t have to mean constant renovations, stressful tenant issues, or spending your weekends chasing tradies.

At Semple Property Group, our experienced property managers in Perth help landlords maximise rental income, reduce vacancy, and take the stress out of day-to-day management – from finding quality tenants to handling maintenance, inspections, rent reviews, and compliance.

Not sure whether your property is achieving its full rental potential? Request a free rental appraisal and we’ll give you a clear, local view of its current rental potential.

Prefer to talk it through first? Get in touch with our team for a chat about your property and investment goals.