Whilst this may seem obvious to budding property gurus, there is a direct correlation between how a property looks, and how much income it can pull. This has a lot to do with the type of tenants a property might attract, based on its physical appearance.
Considering the right improvements is important for a landlord, as it can significantly increase the income of a rental property. There is however, a fine line between making solid, money-making improvements, and those that will leave you somewhat over-capitalised.
Here are the top 8 tips for increasing rental returns.
1) Kerb Appeal
Everyone’s heard the phrase “first impressions are everything”. This is especially important for rental properties. If your investment property is a house with a front yard, you’ll want to spend time tidying up the beds and weeding.
Cleaning your property’s front door and giving windows a fresh lick of paint, will help to boost its positive image – making the property far more welcoming to newcomers.
2) Boost The Bathroom
The bottom line is that people are willing to pay a lot more to live in a clean house, with a clean bathroom. It doesn’t mean that you need to spend an absolute fortune on re-fitting the bathroom.
A good example here, is if tiles are looking a little sad or dated, you can give them a dab of paint. This will cost a fraction of the price that a re-tile would entail.
Replace old shower curtains and think about scrubbing mould away from the grout of the tiling. Throw down a new (and coordinated) rug, to give a fresh and comfy look to the room.
3) Kitchen Crunch-Time
The kitchen is often considered the heart of the home. Much like bathrooms, it’s easy to spend a fortune on a makeover in the kitchen. Renters will always be happy to pay more if they know they’re getting a quality setup here.
Fresh paint will help to provide a facelift for the kitchen – especially if there are signs of cooking splatter. Renters will appreciate nice appliances, so consider replacing tired dishwashers, ovens and freezers. You can save stacks of money here by buying 2nd hand appliances online, or at yard sales.
Replacing cabinet doors is an ideal, and fairly cheap way of updating the look of your kitchen – making for a potential draw to new renters.
4) Parking Problems
Add some off-street parking if possible This will be a big draw to potential renters, especially if your property is in the heart of a city. They will be prepared to pay top dollar for a property that boasts some off-street parking.
This could be an expensive endeavour, but if you can add a parking space at the front of your home, you’ll be able to draw in far more potential tenants.
5) Adding Bedrooms
The more bedrooms you have in a property, the higher the potential rent. Think about whether you’ve got unused rooms in the property that could be turned into bedrooms.
Any big rooms that could accommodate 2 beds, could be split into separate rooms. More bedrooms = additional bedroom rates on top of your weekly rent.
6) Additional Storage
Tenants absolutely love storage space. Many people who rent do not rent the same property for the long-term, so having space to store their various possessions is a must.
You can add cheap storage furniture such as wardrobes and chests, in order to add appeal to your property. Stores such as Ikea will be your best bet – providing a range of budget-friendly solutions.
7) Add A Laundry Room
Having your own laundry room will add rental value to the property – perhaps not much, but it’ll surely attract more potential tenants.
8) Outdoor Entertaining Room
If you can add an outdoor entertaining space, you’ll be top of the list for potential renters. Us Australians love being outside, so this will undoubtedly add rental value to your property.
You don’t need to spend a fortune either – add a deck, tile the courtyard or add a BBQ pit for added attraction.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.