Disappointed with the rent your investment property brings in? Here are 10 ways to boost the rental return on investment property – fast!
When you’re looking at the rental return on investment property, even an extra $20 a week in rent will give you $1,040 a year, or $31,200 over a 30-year mortgage period. Think of all the holidays… I mean sensible things you could do with this extra income.
Here are some home decoration ideas, apartment decoration ideas and interior design trends you can use to increase your investment property ROI.
1. Refresh the bathroom
Bathroom renovations can cost the earth but there are home decoration ideas and tools that will give your bathroom a renovated look without the price tag (or the effort!).
Painting over outdated or gaudy tiles with tile paint instantly gives a bathroom that newly tiled look at a fraction of the price of re-tiling. Replacing old shower curtains, showerheads and fixtures can also inexpensively modernise a dated bathroom, boosting your rent by around $10-$20 per week. Design blogs like The Design files can help you find a style or identify interior design trends when choosing colours and modern shapes.
2. Makeover the kitchen
As the old adage goes, the kitchen is the heart of the home so make sure it’s a space that tenants will want to spend time in.
Like bathrooms, kitchen renos aren’t cheap but, also like bathrooms, a splash of paint over tired cupboards and dated splashbacks combined with replacing old handles with modern shapes can fetch a further $10-$20 per week in rental return on investment property.
3. Add a laundry
Internal laundries are a convenience desired by many tenants and can certainly increase your investment property ROI. If you can make some space in a kitchen or bathroom to fit a washer/dryer and have some money to put towards plumbing and the white goods, you’ll increase your property value, appeal and rental return by at least $10 per week.
4. Be pet friendly
Don’t underestimate the length (and expense!) people will go to if you say yes to pets. By taking a tenant’s furry friends in you may be able to get anywhere from $20-$50 extra in rental return per week! You can also protect yourself by adding a clause in the rental tenancy agreement about carpet cleaning and responsibility for damage caused.
5. Let there be light!
Dank and dark rooms don’t appeal to anyone (except maybe vampires), so give all light fittings a thorough dust and clean, and replace dull light bulbs with new, brighter lights. Light, bright rooms are more inviting and create a better sense of space and openness.
6. Lease it short-term rental tenancy agreements
Ohhh how I long to be beside the seaside! If your property is in or near to a popular holiday or weekender spot, consider whether you’d be better off furnishing your property and offering short tenancy agreements or holiday lets. Look on holiday rental sites to get an idea of rents and speak to a property manager about their fees and average occupancy rates in the area. Just make sure you consider low-season dips and unoccupied time into your rental costs.
7. Add off-street parking
A car space can be make or break for many renters, especially around busy, inner-city suburbs where street parking can be as rare as a rainbow on a sunny day. While adding a carport can cost a few thousand dollars, it is tax deductible, it will increase the property value (increasing the long-term investment property ROI) and should increase rental return by around $20 every week.
8. Add a bedroom
Depending on the size and layout of your property, converting an unnecessary dining room or second lounge area into another bedroom can reap huge rental return rewards – up to $100 per week for (possibly) very little outlay. If there’s no building work involved, it could simply be a case of redressing the room as a bedroom – check out the latest home decoration ideas and apartment decoration ideas for bedrooms and consider whether you want to add a wardrobe and curtains, update light fittings and freshen up the room with a lick of paint.
9. Self-manage your property
Agent’s fees for managing rental properties typically range from 4-7%. Providing you’re willing to put in the time and energy that goes into rental property inspections, finding good tenants and handling maintenance requests, you could make a significant cost saving by self-managing your investment property. This does come with some risk though, so make sure you know what you’re getting yourself into before deciding to do it alone.
20. Storage, storage and more storage
Tenants love storage, and easy additions like wardrobes in bedrooms will increase your property’s appeal and rental value. Budget friendly shops like IKEA and Bunnings have a wide range of affordable storage solutions that won’t cost you the earth, and can add $5-$10 per week to your rental return.
Have you maximised your rental return through some simple and cost-effective enhancements? Tell us what worked for you in the comments.
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