6 ways to add value to your investment property
As an investor, you want to add value to achieve the best possible rental return. The below are some of our recommendations that can help you maximise your investment return. By making improvements such as these, you give your property the best possible chance to secure a high-quality tenant at a premium price.
Please note these will not all be relevant to you, so do not think you MUST-DO all of them. Each house and investor situation is unique, so you will need to work out what will increase your specific property’s value on YOUR budget.
- Street Appearance
First impressions count! The good street appeal makes people imagine a good interior, and the bad street appeal makes people imagine a bad interior (a cheaper property). You want to entice people to live in your house before they even step inside. You can do this by painting the exterior, landscaping, improve fencing, paint/repair the roof, or even render the bricks.
- Internal
Painting is an easy way to make a significant impact on your property’s presentation. A new coat of paint will make your home look fresh and modern. Ensure you stick to neutral colours, as they make the space feel larger, brighter, and airy.
- Flooring
Flooring is crucial! It is one of the first things prospective tenants look at when entering a property. Old, worn, or stained carpet is a huge turn-off. Replacing or professionally cleaning the carpet will increase your rental return and further interest prospective tenants. The same applies to hardwood floors, and it may be worth having these sanded and re-stained.
- Air Conditioning & Fans
Living in Queensland, many tenants will not even think of viewing a property without air conditioning or ceiling fans. Not only can air conditioning and ceiling fans increase the rental yield, but they also add value to your property. If you’re considering installing air conditioning or ceiling fans, make sure you speak to a professional to ensure you’re installing the right size in a suitable space.
- Window coverings and curtains
Window coverings and curtains in rental properties should be chosen to keep the property feeling bright and airy while still maintaining privacy. Blinds or curtains in poor condition or outdated blinds can be negative for prospective tenants. Keep to neutral light colours like white, light grey, or beige – this will keep the space from feeling dark.
- Kitchen & Bathroom upgrades
Kitchen and bathroom upgrades are the most expensive renovations to undertake. However, it can be one of the most effective ways to increase your rental yield if done correctly. We are not recommending you completely replace your kitchen and bathroom and start from scratch. We recommend making simple improvements to ensure you’re getting bang for your buck.
Consider what would have the most significant impact on the smallest investment? Some examples are – painting the walls, painting the cabinetry, replacing the benchtop, replacing appliances, replacing tapware, updating handles, replacing shower screens, or painting outdated tiles. Creating a neutral, modern pallet will attract all prospective tenants.
Have any questions? Contact Mareea Wilkinson, our Head of Property Management and Director of Homes4U. She will use her years of experience and wealth of knowledge to help you maximise the return on your investment property.
