Renovating an investment property is a great way to improve it’s rental return and capital growth.
When done correctly, a well-planned makeover can significantly increase a property’s value and tenant appeal. Here are some great ways to instantly boost value and attract a wider scope of prospective tenants to your property:
Over time dirt, stains and scuff marks make their way onto walls and make a property look old and tired. A fresh coat of paint, ideally in neutral colours, not only quickly covers up all signs of wear and tear, but also makes your property look lighter, brighter and ready to rent.
There’s nothing more off-putting inside a home than outdated or stained carpet. If the carpeted spaces are starting to look worse for wear, then replace them with a durable style that looks not only looks great but also ages well.
Consider converting a spare space, such as a sunroom or study, into an additional bedroom. Adding an extra room to a home or apartment automatically gives it more flexibility and appeals to a wider range of tenants. For example a simple one bedroom unit that is suddenly transformed into two rooms, can go from accommodating just a single person or couple, to a property that can accommodate a couple, two single flatmates or a couple with a child.
If your rental property has an outdated or ugly looking bathroom, there’s a good chance you’re missing out on great number of quality tenants. It’s easy to freshen up an old bathroom, even on a tight budget. Simple updates such as re-grouting old ugly tiles or repainting over them with waterproof paint can make a big difference. Likewise, updating a vanity and replacing old shower heads, taps, handles, and mirrors will transform the space. Re-coat a rusty old bath with bright white re-enamelling paint and you’ll give it a new lease on life.
Adding an internal or built-in laundry to a bathroom or kitchen area, instantly modernises an apartment or heritage cottage and makes your property so much more appealing and competitive on the rental market.
Installing built-ins is one of the most cost-effective alterations you can make to a rental property. Consider floor-to-ceiling built-ins to make the best use of space. Your tenants will be ever-so-grateful that you did.
Whilst it does require a higher outlay upfront, installing an split-cycle air conditioner can make a huge difference to your property’s perceived value - especially in those hotter months. Purchase a good quality model outside of the summer season, and you’re bound to snap up a great bargain at a reduced cost.
Whether it’s adding extra cupboards, garage storage, or an outdoor shed, extra storage will be high valuable to tenants who are seeking storage solutions. It can easily become the deciding factor that has them choosing your place over your competitors.
According to the Australian Companion Animal Council, more than 60 per cent of Australian households have a pet - and that includes rental properties. Accepting pets as part of your tenancy agreement could be a lucrative move. Just be sure to ask your property manager to include special conditions in the lease, so that you’re protected from any potential damage or flea infestation.
If your property is in a high density area, where it’s hard to find parking, then adding an off-street parking space is like adding hidden treasure to your investment. A parking space in an inner city or beachside suburb can increase rent up to $50 per week, plus double the amount of prospective tenants at your doorstep. Look for opportunities that allow you to incorporate new or additional parking, such as creating space for a driveway, adding a carport to an existing driveway, or turning a front yard into a off-street space. If you’re in an apartment building, there may be an opportunity to lease space from a neighbour and then factor it in your tenant’s rental agreement.
There’s no doubt that renovating a property is a smart investment move. Not only does it make for happier tenants but an increase in profits will make for happier owners.