One of the great aspects of owning a rental property, is that by completing a few renovations, you could earn a higher rent, or give the place an uptick in market value.
Renovations don’t have to be major to have a big impact on your returns. Check out these simple ideas for budget-friendly renovations with the potential to add value and tenant appeal.
Kitchen and bathroom makeovers
These can be two of the most expensive rooms to renovate. However, you don’t have to re-arrange the plumbing or spend a fortune on tiles to make a worthwhile difference.
Painting over outdated tiles (use specialist tile paint), re-grouting, and adding a new shower curtain can freshen up a bathroom. Install modern taps fittings or a low-flow showerhead to give a tired bathroom a new lease of life.
Head to the kitchen, where a budget-friendly makeover can include repainting or replacing cupboard doors without the need to pay for new cabinetry. Replace old handles, and add a splashback. A day’s work can lead to a handy uptick in weekly rent.
Make it pet friendly
Three out of five Australia’s households own a pet, and research shows that tenants with pets may not only be willing to pay higher rent, they can also want a longer lease.
If you’re happy to make your rental place available to pet lovers, it might be a good idea to invest in secure fencing. Adding side entrance gates to the back garden can also be very appealing to pet owners.
If you’re worried about additional wear and tear, consider adding a clause to the lease that says the outgoing tenant may be required to pay for carpet cleaning or other pet-related costs you could face as a landlord.
Extra storage always comes in handy, and budget-friendly shops like IKEA and Bunnings, have plenty of affordable storage solutions that a DIY handyman can often install in a day. It can be an affordable way to add valuable dollars to your weekly rent.
The key is to make improvements that will appeal to tenants in the local area. Your property manager or local real estate agent can offer tips on the renovations you could complete to earn a higher return on your rental investment.
Avoid the overcapitalising trap
Overcapitalising refers to the situation when you spend more on renovations than they add to your property’s value. It can be a costly mistake for investors, and this highlights the danger of assuming that all renovations will add value.
It’s possible to keep your renovation on track with a bit of background research. Know the sort of tenant your property will attract, understand what’s likely to appeal to them, and check out local market values. The last thing you need is to renovate your investment property to the point where local residents can’t afford the rent you’re asking.
If you have an existing investment property and are looking to renovate, speaking to an Aussie Broker can help you understand your financing options.
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- Chapter One : Things to consider before investing in property
- Chapter Two : Determining where to invest
- Chapter Three : Investment Properties by Dwelling Types
- Chapter Four : Finance for Your Investment Property Purchase
- Chapter Five : How to Invest in Property
- Chapter Six : Adding Value to Your Investment Property
- Chapter Seven : Positive and Negative Gearing
- Chapter Eight : Getting Your loan
- Chapter Nine : Selling your Investment Property