Spending money on your investment property needs to be done in a careful and considered manner. Good tenants will appreciate your expenditure if it has been done sensibly and practically. This will also increase the quality of your tenant, rental return and the speed in which your property is let.
Here are our tips for which items are best to invest your hard earned in:
Paint– A new coat of paint is one of the most underrated inexpensive ways to improve a property. Walls, doors woodwork and these days even painting kitchens can be a great way to freshen up a property and give it a new lease of life with minimal expense. Don’t forget the outside and fix any rot.
Flooring– Threadbare carpet, torn vinyl and chipped or cracked tiles can really make a property feel unloved and unattractive. Plenty of good tenants have kids who live half their lives on the floor. Freshening up the flooring when required is a sure-fire way of keeping your property popular with tenants. Another great way of keeping your property at the top of the list. Make it essential for tenants to steam clean your tenants when they vacate to keep them looking and feeling fresh.
Security– Dead locks should be installed on all external doors and all windows should have key locks. A security alarm also provides a sense of wellbeing and safety for tenants. Tenants can receive a discount on their contents insurance if the property has increased security measures in place. Good security adds to a property’s appeal and peace of mind for tenants. This could be the deal maker between yours and another property and tenants will pay extra for it.
Replace and Add Appliances– If your oven or stove is old grotty and marked you should replace it or get stuck in to cleaning it. Items such as dishwashers and split system air conditioners are welcome additions which are highly regarded by tenants. Re conditioned appliances or factory seconds a great way of saving money.
Idiot Proof the Garden– Very few tenants like gardening but most love spending time outdoors. An attractive low maintenance garden setting will get tenants excited for your property. Think synthetic turf instead of lawn, well selected stones and gravel instead of gardens and low maintenance native trees and shrubs. Automated watering systems watering systems are also a practical convenience for tenants.
Street Appeal– Leasing a property is the same as selling a property. You want to attract tenants inside and the best way of doing this is by creating a great first impression. Does the front of your property look great? This should include being nicely painted, not covered in dust, well maintained fences and letter boxes and a nice garden. This can sometimes be as simple as washing the front of the house with a hose and broom and tidying up the garden.
Storage– Everyone love storage. Nothing worse than having to go and buy a robe from Ikea setting it up and then having to take it away when you leave. Installing built-in robes in bedrooms, a nice vanity with pull out drawers in bathrooms, mirrored storage cabinet and smart use of cupboard space in other areas of the house is an investment in your property and will gain you a ROI and will likely decrease tenant turnover.
Don’t forget to externally clean your windows and pressure wash your weather boards between tenancies.
All items mentioned in this piece are sensible practical items that you would not leave neglected in your own home. Tenants like the same creature comforts as home owners.
Improvements made to properties need to be brought to the attention of your property manager and be included in marketing as well as promoted at open for inspections.
Don’t forget most improvements you can claim some sort of deduction for so speak with your accountant about them at tax time.
If you currently have your property managed by another agent and your unhappy with the service you’re receiving or are looking to lease out your home, give Justin a call on 0418 334 126 to discuss maximising the financial outcome of your investment property or home!