Top 5 Renovation Improvements To Increase Investment Property Profit

calculating the renovation improvements to increase investment property profitWhilst investors are enjoy­ing the fruits of an extremely tight rental mar­ket at present, with his­tor­ic­ally low vacancy rates across all cap­ital cit­ies, (Espe­cially in Toongab­bie and Seven Hills) this is no time for land­lords to become com­pla­cent about the up keep of their invest­ment or over con­fid­ent about keep­ing their prop­erty occupied.

Spend­ing a bit of time and money spru­cing up your invest­ment can make a big dif­fer­ence when it comes to re let­ting and min­im­ising vacan­cies between ten­ants. Not only will a home that’s well cared for reduce the like­li­hood of it sit­ting empty for long peri­ods of time, it will have the added bene­fit of attract­ing bet­ter qual­ity ten­ants will­ing to pay a little extra for top shelf presentation.

Essen­tially, some small and inex­pens­ive improve­ments can give your prop­erty that point of dif­fer­ence and make it stand out from the crowd.

It is true that ten­ants can­not afford to be as fussy these days, with fierce com­pet­i­tion for any new stock that hits the mar­ket, how­ever qual­ity ten­ants are increas­ingly dis­cern­ing about where and how they want to live.

Many young singles and fam­il­ies are being forced out of home own­er­ship with afford­ab­il­ity issues and increas­ing interest rates pos­ing a real con­cern. There­fore the prop­erty they rent may be home for a num­ber of years. And given the cur­rent inflated mar­ket prices they are forced to pay, many expect high priced rental prop­er­ties to at least look decent and well cared for.

In most cases all that is required to bring a tired look­ing rental back to a fresh, clean and enti­cing place to live is a bit of TLC.

Here Is The Top 5 Renov­a­tion Improvements:

  • First and fore­most, your rental prop­erty requires street appeal. With ten­ants scour­ing the inter­net and driv­ing past pro­spect­ive prop­er­ties before they even con­sider mak­ing an appoint­ment or attend­ing an open home, it is more cru­cial than ever that your invest­ment looks neat and tidy on the outside.
  • Ensure that lawns are mowed, garden beds are in order, paths and drive­ways are clean and the front of the build­ing is present­able. For older style weather­boards or period rendered homes, this might even require a lick of paint, some new gut­ter­ing and/or roof restoration/repairs.
  • Con­sider what you can do on the inside of your prop­erty to increase its appeal. One of the best approaches to work out what you might need to repair, add or alter is to take a step back, cast a crit­ical eye over your invest­ment and object­ively ask your­self, “If I lived here, what would I want to see improved to increase my com­fort and really make me feel at home?”
  • Keep in mind that little lux­ur­ies such as air con­di­tion­ers and dish­wash­ers can make a big dif­fer­ence as to how much a ten­ant is pre­pared to pay. There will always be more demand for a rental that offers these options rather than one that does not. It is these extras that make a prop­erty stand out from the crowd.
  • Per­haps con­sider a coat of paint to freshen the prop­erty up and maybe some new car­pet and tiling. These simple cos­metic enhance­ments can really trans­form a tired look­ing invest­ment into some­thing mod­ern and enga­ging that will catch a pro­spect­ive tenant’s eye as soon as they open the front door.

The next step of course is updat­ing old kit­chens and bath­rooms. We all love mod­ern, shiny appli­ances and your ten­ants are no excep­tion. If you can afford to make these types of improve­ments and your kit­chen is lan­guish­ing in the sev­en­ties, this could well earn you a much bet­ter qual­ity of ten­ant and price for your invest­ment prop­erty when you re let. Two things every land­lord hopes for.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

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