The trick is to know which renovations are more likely to increase the value of your assets and bring in higher rental yields.
I’m not saying to go crazy and knock down walls or install a new state-of-the-art kitchen, but by simply making a few small changes you could not only be cashing in bigger bucks you will be keeping your tenants happy.
So where do you start? Well first let me share a story with you about a friend of mine and her experience as a tenant.
The apartment she was renting did not have a washing machine. At first it didn’t really faze her, but a year down the track and well over a $1,000 spent trawling to the laundrette every Saturday morning - it was starting to grate!
She decided to speak to her property manager and ask if he could install a washing machine. She had plenty of space so it was not an unreasonable request. However the property owner said no and he was not willing to budge. As a result she decided to leave the property.
She was a great tenant, she never missed a payment and she looked after the apartment with love and care. This resulted in the owner having to fork out cash to find new tenants, even though he had a perfectly good tenant in the first place!
My friend would have been happy to pay an increase in rent, as it would have saved her so much time and effort each week. Unfortunately the property owner didn’t look at the bigger picture. By increasing the rent he would have been cashing in an extra every year!
The moral of the story is that some tenants would happily pay a little more money to stay in a property. It’s really important to listen to what your tenants want or it could end up costing you more in the future.
Here are a few ideas to get you started:
- Wash and repaint the walls – there is nothing better than walking into a freshly painted home. It feels new, fresh and clean. Light pastel colours are a good option as they make rooms appear bigger.
- Put up new blinds/curtains – along with freshly painted walls and new blinds/ curtains, your property will be instantly transformed.
- Clean – a property should always be presented in its best light. Always, always, always invest in professional cleaners - even if the previous tenants have given it the once over. Arriving to view a fresh smelling property is an undeniable benefit in winning over potential tenants. Apply a like-attracts-like method here. If your property is beautifully presented, clean and tidy then you will attract that back to your property. If your property is run down, unclean and un-kept then you can also expect to attract this type of attention to your property.
- Storage – invest in installing built in wardrobes. Built in wardrobes are a great addition and selling point to renting any property. Rooms look more organised and it also saves the tenant paying out for new ones.
- Air conditioning and heating – some tenants won’t even consider a property, no matter how beautiful it is, if it doesn’t have air conditioning – myself being one of those people! Split systems are a great option as they both cool and heat the property.
- Maintenance – take care of any maintenance and repairs issues before letting candidates view your property. Overlooked maintenance issues can be taken as a sign of neglect. Here at RentSource we can manage all your repairs, maintenance and property management fees at half the price to anyone else in the country.
- Lighting – investing in lighting can really brighten up any home. You can find reasonably priced light fittings that can really improve the appearance of your rooms.
- Dishwasher – investing in a dishwasher is a worthwhile option. In today’s busy and fast paced environment many people are rushing from one place to another and don’t want to spend their time in the kitchen washing dishes when they can flick a button and it be all done for them.
- Laundry facilities – well I think the story above gives you an idea of the importance of laundry facilities, so I guess this investment speaks for itself! And don’t forget that you are required to offer tenants a laundry facility – either dryer or outside line.
- Find a fabulous property manager! Last but by no means least, finding yourself a great property manager will not only keep your tenants happy but it will take a lead of your mind. Don’t forget here at RentSource are aim is to help property investors make the most out of their investments in a hassle free way. The team can take away all the stresses and headaches and at half the price to any other agent out there! Call us today on 1300 367 047 to find out how we can save you thousands each year!
Collections: Property Investment