How to Maximise ROI on Your Property This 2025

Landlords in Hurstville and the wider St George area need to be strategic to increase their return on investment property in 2025. This is due to Sydney’s changing property market, strong rental demand, changing tenant expectations, and economic fluctuations. It is important to make informed decisions to protect and grow your investment.

If you own a rental property, here are the steps you can take to improve your financial returns this year.

1. Understand the St George Market in 2025

Sydney’s property market is entering a new phase, with affordability pressures slowing price growth while rental demand remains strong. Hurstville, Kogarah, and Carlton continue to attract professionals, young families, and international students due to their proximity to the CBD, transport hubs, and quality schools.

According to Yardney (2025), Sydney property prices are steady, but rental vacancies remain low at 1.7%. This suggests that demand for rentals will stay strong, making it an important time for landlords to review their property’s earning potential.

Key Takeaways

Rental demand is high, so setting the right rent is important for securing long-term tenants.
The right property features matter, with tenants preferring modern, well-maintained homes close to transport and schools.

2. Make Strategic Renovations That Add Value

Not all renovations provide a strong return on investment. The focus should be on high-impact, cost-effective improvements that attract quality tenants and justify higher rents.

Smart Upgrades for 2025

Kitchen and bathroom updates, such as new benchtops, tapware, or splashbacks, to refresh the space without major renovations.
Energy-efficient features, including LED lighting, ceiling fans, and efficient heating and cooling systems, which are increasingly popular with tenants.
Smart-home integrations, such as keyless entry or intercom systems, that improve security and convenience.

Working with trusted local tradespeople can help keep costs manageable. Mclaws Property has a network of professionals who can assist with upgrading investment properties without overcapitalising.

3. Improve Tenant Experience for Higher Retention

A well-maintained property with a strong tenant focus leads to lower vacancy rates and higher long-term returns. Retaining good tenants reduces costs associated with finding new renters and minimises income loss between leases.

Ways to Keep Tenants Longer

Regular maintenance schedules to ensure repairs are addressed promptly.
Flexible lease options that provide stability and reduce turnover.
Pet-friendly policies to attract a wider tenant base.

A well-managed property doesn’t just attract tenants; it keeps them. Landlords who focus on tenant satisfaction see fewer vacancies and stronger rental yields.

4. Invest in Sustainable Upgrades

More tenants are actively looking for eco-friendly homes, and landlords who invest in sustainability can increase rental appeal and long-term savings.

Simple Sustainability Upgrades

Solar panels to lower electricity costs, with potential government rebates available.
Water-saving fixtures such as low-flow showerheads and dual-flush toilets.
Energy-efficient appliances that help tenants reduce power bills.

Some NSW landlords investing in solar power or water-efficient systems may qualify for state incentives, making these upgrades more affordable.

5. Set Competitive Yet Profitable Rent

A strong return on investment property in 2025 depends on setting the right rent. Pricing too high can lead to longer vacancies, while pricing too low means missing out on potential earnings.

How to Get the Right Balance

Research similar rentals in Hurstville, Carlton, and Kogarah to compare pricing.
Review rent annually to ensure rates align with market conditions.
Offer incentives, such as WiFi or partial utilities, to attract long-term tenants.

6. Work with a Local Property Expert

A property manager does more than just collect rent. They provide expert guidance to help landlords improve their returns. Mclaws Property offers:

Regular rent reviews to ensure competitive pricing.
Tenant screening to minimise risks.
Property maintenance and compliance to protect investments.

Take Action to Increase Your ROI

Improving your return on investment property in 2025 comes down to market awareness, smart upgrades, tenant retention, and professional management. Small changes can make a big difference in rental yields and long-term property value.