High, long-term returns are the cornerstone of successful rental investment properties. If you’re looking to boost the value of your rental property, the following tips can help.
As a rental property investor, you may be focused on pricing and positively gearing your property portfolio. However, it is important to also ensure there will be demand by tenants – after all, that is the bottom line. If you buy the right property and invest some money and effort into maintenance, you will be able to charge more over time and ensure a steady stream of tenants and minimise periods of vacancy. Before you invest, simply ask yourself: “What type of tenant am I trying to attract?” You should understand your target market, how many of them there are and what types of properties they prefer to live in.
Don’t underestimate the power of small cosmetic makeovers that can make a big impact without costing a fortune. Examples include fresh paint jobs, fixing small things around the property, power washing the garage and driveway and upgrading the lighting. Consider also a minor garden makeover or some extra landscaping. Kerb appeal can go a long way to increase property value and attract higher rental returns.
If your budget allows, investing in high-value renovations can increase your returns and keep your property aligned with the current market. Prime spaces like kitchens and bathrooms add the most value to a home. If you can’t afford a complete gut job, focus on simply updating fittings and fixtures. Cost-effective modern tiles can transform a bathroom, while new appliances can keenly modernise a kitchen. If it’s not feasible to completely rip out kitchen cabinets, consider just replacing the doors and handles.
Extending the property, for example by adding an extra bedroom, living space or even an entire granny flat can add significant value. If space or budget is limited, you could consider converting a loft or garage, or re-modelling the interior by removing walls to open up the space.
However, before you decide on large renovation jobs, it’s important to consider the demographics of the area and your targets’ needs. Additional bedrooms or living spaces can add value to a property but ‘bigger isn’t always better’ for all tenants – like young adults with no children.
Hiring an experienced, reputable property manager offers valuable insights into the property market and opportunities to boost rental growth. Property managers also have a good understanding of owners’ needs and can thoroughly assist with your investment journey.
As an investor, it is really important to stay up to date with market changes that can present opportunities to increase rent or offer long-term leases. Although a great property manager will keep you updated and offer expert advice, it’s always a good idea to do your own market research to stay on top of the game.
Did you know rental property expenses can boost your tax refund, increasing your overall yield? You can maximise your tax savings by claiming essential items such as:
Owning an investment property can be a rewarding but complicated journey. Having a professional by your side to help maximise your returns is always a good idea. The team at Ray White Surfers Paradise can help guide you on your investment property journey. Contact us at one of our many offices today.