How much rent should you charge for your investment property?

Use rent to boost your income

Renting out an investment property is a great way to boost your income each month. It could mean that you’re able to afford a few extra luxuries, security for your family, or funding for your retirement.

Plenty of Australians invest in property as a way to maximise income and secure their futures. Many people will have happy, reliable tenants for a number of years – but to attract these kind of tenants, how much rent should you charge on your investment home?

Rental yield versus market conditions

Some sources claim that your rental income should yield around 0.8 – 1.1% of the total value of the home. So if your property is worth $500,000, your monthly rental income should be around $4000.

We believe this oversimplifies and could lead to problems down the line. There are many factors to take into consideration when you are working out your potential rental income for your property. It depends on your property, the suburb, the conditions of the rental market, and the rental charged for other properties in the area.

Get to know the rental market

The most important thing when setting your rent is knowledge of the property market. This means checking out other properties in your area and seeing how much they are renting for.

A few tips – check out properties with similar amenities and decorative order to yours, including the number of bedrooms, bathrooms, and how much outside space there is to offer. This should give you a good indication. Take note of which properties have been ‘let’ and which are hanging around on the market – it may be that price is a key factor at play.

If you’d like to know more about rental prices in your area, download a free property suburb report, with personalised insights and comparisons.

Don’t inflate your rent

Your rental rates should not be focused on how much money you want to make at the end of the month. While building your wealth is an important factor, it shouldn’t be the sole way you determine your rates.

It might be tempting to put your rates up as high as possible to maximise your monthly profits. This could lead to your property being on the market for longer than you’d like – especially in areas with plenty of homes for renters to choose from – and run the risk of a void period where no tenants occupy your property. In markets that are particularly saturated with houses, you might need to set a slightly lower price to make your property stand out to prospective tenants. As little as $5 a week could make the difference between clinching the perfect tenants and having an empty investment.

Negative gearing and tax benefits

Take a look at your expected outgoings related to the property – including loan interest repayments, insurance, maintenance costs, management fees and other bills. If the total sum of these expenses is more than what you could reasonably charge for rent each month, don’t despair.

This is known as negative gearing, and there could be some significant tax benefits for setting up your investment property in this way. For example, if you make money on a property each month, you will need to pay extra tax on the income you receive from rent. But, if your property is negatively geared, the difference represents a loss and can be offset against other income (like your wages) to reduce your overall tax bill – in some cases by 20%.

If this all sounds complicated, learn more or speak to one of our advisors for free to see how negative gearing could work for you.

Get expert property investment advice

When setting your property rent prices, it’s important to get market insights, benefit from local knowledge, and have an expert take a look at your finances on the whole to see if there are any tax savings to be made. Our team is constantly analysing the market to forecast trends in rental prices. This means that if an area is about to get infrastructure investment, new businesses and amenities, we’ll know about it and can advise accordingly regarding your rental rates.

We also offer a full property management service covering advertising your property, finding tenants, conducting inspections, and managing tenant queries. All you have to do is pick up the phone every now and then for a chat with one of our team.

So whether you already have your investment property, if you’re scoping the market to find out where is best to buy, or you’re due to renew your lease, we have the services to ensure you’re making the best decision for now and the future.

Book your free consultation with one of our experts now

Additional Resources​

Reventon Residential – For all property sales, property management and property rental related services, our well respected team can help you.

Reventon Investments – Residential Property Investment. We help everyday Australians build wealth safely through property investment. Book a free consulation today.

Reventon Finance – For all your mortgage and finance needs. Our multi-award-winning finance team can help you with home loans, investment loans, mortgage refinance and more. Have a chat to a finance specialist today.



Latest Posts

Free Resources

Social Media

Your Name *
Phone Number *
Email Address
Cover Letter
Maximum file size: 5 MB
Maximum file size: 5 MB



Book a free one-one-one consultation with our qualified, award-winning experts today!

Brick by Brick starts construction

Lead With Kindness #LWK23

$1 billion under management


Add Your Heading Text Here

Download our full guide

A valid Australian mobile phone number is required to access the password to open this PDF.

Format your mobile as follows: +61 412 456 789

The Legendary Luncheons

Record-Breaking 5th Year Vinnies CEO Sleepout

The Inaugural Lead With Kindness Event (#LWK)

To kick off our most special Vinnie’s campaign ever, we teamed up with the incredibly talented musicians Matt Charles and Andrew Loadsman to get into the studio and record our charity anthem ‘A Little Means a Lot’. Thanks so much to Mark D’Angelo and the Backlot Studios for bringing this poem to life. Still gives us chills everytime.

A Little Means A Lot

Brick By Brick

Reventon Snooker Academy

The New Reventon Office

Reventon Raises Over $100K For Vinnies CEO Sleepout

Chris Christofi once again spent a night sleeping on the streets for his 4th Vinnie’s CEO sleepout. After raising progressively more and more in previous years, Chris placed 4th amongst CEO’ss nationally after raising over $113,000, after Chris pledged to match ever donation dollar for dollar.

Despite being a virtual event this year owing to covid restrictions, Vinnie’s set a new donation record with $9.4 million raised nationally.

Chris pledged that the following year, he would be the first Vinnie’s CEO to raise over $250,000.

Vinnies’ CEO Sleepout

Chris takes part in his first Vinnies CEP Sleepout. He exceeds his $40,000 target by raising $40,185 placing him 12th out of 1,462 CEO’s nationwide and in the top $1% of fundraisers across Australia.

You can check out Chris’ first ever LinkedIn post talking about his experiences on that first sleepout by clicking here. 

Chris’ Second Vinnies CEO Sleepout

After raising over $40,000 the previous year, Chris and the Reventon team are determined to beat that, and this year manage to beat their target of $60,000, raising $60,564 for homeless Victorians, after Chris promised to match every dollar donation with 50c of his own money. This year Vinnies hit a new record of $7.87 million nationally.

Chris Christofi On His Third Vinnie's CEO Sleepout

After raising over $60,000 in 2019, this year Chris and Reventon manage to easily clear their target of $80,000 and raised $82,177 after Chris vowed to match ever dollar donated with 75c of his own money.

Matt Charles from We Gift Wrap worked with Chris to produce a song raising awareness of Chris campaign.

Reventon Accounting Launch

A range of financial, accounting and property services are brought under the Reventon banner   

  • Preparation of Financial Report and Tax Return 
  • Tax Planning  
  • Business Activity Statement, FBT Return, and Tax Instalment 
  • Business Restructuring and Setting Up a new Entity

Reventon accounting is proud to provide the following services:

  1. Preparation of Financial Report and Tax Return – As part of our annual tax-related compliance work, our team is proactively establishing the best tax minimisation models for you, and also, ensuring tax compliance on your account. 
  2. Tax Planning – Everyone need the ultimate planning and strategy in all parts of life, especially Tax. Our highly experience team will build a personalised  tax strategy and minimisation according to your situation and needs and ensure you a maximum advantages on any investment asset transactions. 
  3. Business Activity Statement, FBT Return, and Tax Installment –  Small business owners spend hours every week dealing with Tax Requirements (BAS, FBT, and Tax Installment) which is a valuable time that you could have spent growing the business and the profit. Let our expert team to take this hassle away from your shoulder so you can build a valuable business for your retirement. 
  4. Business Restructuring and Setting Up a new Entity – Entity structure is one of the five foundations of a business. Our knowledgeable team will ensure you to have a solid foundation so you can focus on building a business on top of it. Your investment is your business too, don’t overlook them. 
  5. Bookkeeping, Payroll, and other Business Compliance – Our team takes ownership on anything that we do. We ensure high quality work and compliance in any levels of Accounting and Tax Regulations – ASIC Corporate compliance, workcover insurance, business-required licensing and insurances, Single Touch Payroll and payroll-tax, Superannuation Tax and Regulations. 
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
What's In Store For Residential Real Estate In 2022
Property Investment in South East Queensland
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
Property Investment in South East Queensland
What's In Store For Residential Real Estate In 2022
Guide To Your First Investment Property

Online budget planner

Have trouble sticking to a budget?

With the budget planner, you can log your incoming and outgoing expenses to keep track of your finances and set saving goals.

Check out our other calculators too

Loan repayment calculator​

Want to work out your repayments on a home loan?

Enter the details of your loan and discover how much you’ll be paying each month.

Check out our other calculators too

Borrowing-power calculator

How much could you borrow on a home loan?

Enter your income details and spending habits to discover your borrowing-power on a future home loan.

Check out our other calculators too

Stamp duty calculator

Confused by stamp duty?

Enter the property’s value and state or territory to discover exactly which fees and charges you’ll be required to pay.

Check out our other calculators too

Income tax calculator

Want a breakdown of your income tax?

Drag the controller for your income and discover your take home pay and tax rates.

Content Unavailable

We’re making some changes to our website and the content you are looking for is currently unavailable. Please check back later or book a free consultation by clicking on the button below.