by firstname.lastname@example.org | Aug 20, 2021 | Property Investment
Every investor who plans to purchase a property for rental purposes has a goal: to generate cash flow from rents and increase the value of their investments over time.
Here are our top ten ideas on how you can do some simple renovations to add maximum value to your investment.
Any of these renovation ideas can be done by yourself or a handyman, saving you from additional expenses.
1. Add an ensuite to two bedrooms in a 3-bedroom house
If you own a 3 bedroom property such as terrace houses and old apartment blocks with only 1 bathroom, adding an ensuite to one of the bedrooms can increase your rental yields by $100 or more per week. Property with an ensuite is always in demand.
The cost of the renovation should be between $5000 and $8000. An increase in rental yield will be immediately available with this investment paying for itself in less than 12 months, not including any increases in rents during this period.
2. Change the kitchen
If your current kitchen is not modern or of low quality, replacing it with a new one will help to increase the value of your property significantly and add rental yields quickly. A quality kitchen costs between $6000 and $10000 and will immediately add an extra $50 – $200 per week or more to existing yields of homes. Bunnings is a great source of low-cost kitchens and will be significantly cheaper than engaging a cabinet maker.
3. Install new carpet and repaint the interior of the house.
A good quality carpet for a 3 – 4 bedroom house costs about $1500 – $3000 and will pay for itself within about 6 months depending on increases in rental yields.
New carpet will also make your property look modern and well-maintained, increasing its value. Painting the interior is the least cost-effective way to increase rental yields but still costs only about $1500 and pays for itself in less than 9 months.
4. Add a pergola or open pavilion to your backyard
This is the most expensive renovation on our list, costing between $5000 and $15000. However, it will quickly add another $100 – $200 per week or more to rental yields and increase your property’s resale value significantly.
5. Install a new fence with gates at the front of your house
A standard 6-panel wooden fence costs about $3000, with a wrought iron one costing only a little more. A new fence will increase the value of your property and help to separate tenants’ outdoor activities from those in your backyard.
6. Install a new entry door that will increase security and add value to your property
A good quality, secure front door costs about $1000.
7. Fix or replace broken tiles in the bathroom/kitchen areas of your house
This cost-effective renovation involves changing old cracked tiles with new ones, the modern fresh feel will immediately add $50 or more to weekly rentals.
8. Add a laundry/utility room to your house
Property with a utility area is almost always in demand and this renovation will increase the value of your home by 20% or more. Creating an internal laundry area also means that tenants save on additional costs associated with washing at the laundromat.
9. Install Air Conditioning/Heating
Depending on where your investment is located, Add air conditioning and/or heating to your property. Property with excellent insulation and efficient heating systems is always in demand during the winter or summer months, particularly thanks to COVID, tenants that now have greater flexible work arrangements and will appreciate the comfort.
10. Double Up Your Potential Income
If you have an old garage or shed, convert it into a studio apartment and rent it out separately, if allowed by the council. This is the most profitable renovation on our list. Property with additional units can easily add $150-$300 a week to your tenants’ rents and also increase the value of your property significantly.
Final word: Although this article has listed only the top 10 ideas for renovating your investment property, there are many other small renovation projects you can do to increase
by Locate Property | Feb 17, 2020 | How to Guides, Landlord Advice
Suzana Wade knows a thing or two about managing investment properties but like any investment, when you purchase an investment property you desire to be making as much money as it can for you. However, also you don’t want to be one of those dodgy landlords that turn up on A Current Affair. This article will help you with the 10 ways to increase returns on your investment property, the right way.
We’ve come up with some methods to increase your rental returns.
Use an Excellent Property Manager
To ensure your property is managed effectively, you need to ensure you discover a great property manager who understands the intricacies of the job and aligns with your goals.
Excellent property managers can be tough to discover but they need to be certified, come recommended by other investors, have been in the market for a variety of years, and have regional knowledge of the location and the types of renters your property is likely to attract and be in touch with you regularly.
Obtain Longer Leases
It makes sense that the more often you are looking for a new tenant the more fees you are going to incur, so going for a 12-month lease over a 6-month lease as much as possible is going to not only lock in great tenants but also minimize disturbance to your cash flow.
Losing out on rental income is the last thing you want from your investment.
Renting out a property comes with several must-do tasks.
- Advertising the property, ads, photos, getting good exposure etc
Streamlining this process is an absolute must or you will soon find the time you are outlying isn’t covering and savings you may be making through self-management.
Increase The Rent
This seems like an obvious choice however it is incredible the number of landlords who haven’t increased their rent for several years.
Discovering what the market rent is and the next time you can increase your rent is a crucial element if you expect to get the most out of your investment.
Have an Excellent Tenant
Rental properties can be like rental cars in the fact they get driven hard. An excellent renter is worth their weight in gold, so it’s important to keep them, value them, and consider rewarding them.
This is where the best property managers come in handy as they are excellent at nurturing quality tenants.
Claim All Tax Deductions
Working with your team to ensure you are getting the maximum deductions from your investment property is another must.
Obtaining a depreciation schedule from a property surveyor will allow your accountant to factor in all the potential deductions that exist in your property.
A new coat of paint, brand-new flooring, and resurfacing of the bathroom or kitchen could easily increase rent by 10%. This alone ought to increase the lease by an additional 10% if you choose to put in a new cooking area.
Upgrading properties not only increases your rental yield but also helps to bring in a much better quality tenant.
Of course, you need to crunch the numbers to make sure any renovations are worthwhile, but it is certainly a powerful tool when used thoughtfully.
Lots of people own family pets, something around two-thirds of all potential renters. There are very limited options in finding rental properties that are suitable/allow family pets.
If you can make your property animal friendly, you will frequently find that renters will pay you a premium for this, and provides a wider selection pool.
Charge For Utilities
In some states, you can charge for utilities. If you expect the tenant to preserve a garden, you should pertain to some sort of plan where you share the cost for use of water.
Whether you are managing the property yourself or have a property manager, you want to be sure rent is paid on time. You will find that the further behind a renter falls in their rent, the less likely you are to see all the rent owing to you.
That should give you plenty to think about and of course, feel free to get in touch if you have any ideas or questions regarding your property.
Any one of these items on its own will have an impact but set about applying the 10 ways to increase returns on your investment property and you’ll be onto a winner in no time.
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