Want to achieve a higher weekly return and attract better quality tenants? These simple and cost effective improvements will give you the biggest return on your investment!
As with any financial transaction there are 3 key considerations – time, money and risk.
Improving the property will reduce your exposure to a high risk tenant. A better quality property is more likely to attract a better quality and house proud tenant as well as a higher weekly return.
However, you need to be vigilant with time frames and ensure you are managing your tradespeople efficiently. Every day the property is left vacant, it is costing you on your rental return.
No.1 – Clean
I list ‘clean’ first because it is probably the most underestimated and practically free improvement to any property! Just because a property is older doesn’t mean it can’t be spotless, this will go a long way towards attracting a tenant who values a clean environment. To really present a clean property check light fittings, window tracks & sills, curtain rails and exhaust fans. Wipe down walls and skirting boards removing scuff marks, remove spider webs form and deep clean the house entirely. This makes a home more welcoming and gives prospective tenants a much better and cleaner feel when entering the home.
No. 2 – Paint
What better way to brighten up a property than a fresh coat of paint! Paint quotes can see huge price variations, so its important to work out exactly what is required. If the ceiling and architraves are in good condition, just paint walls as this is a good way to keep the costs down to a minimum. Also keep the colour light and bright with a fresh neutral colour throughout. A good tip is ½ or 1/4 strength Hogs Bristle – subtle yet not stark white.
No. 3 – Window Furnishings
While its tempting to avoid saving money on these changes, older curtains and blinds can really date property. A light colour, opaque tab curtain is usually the most satisfactory and economic solution. They wear well for their cost and can be purchased from stores like Ikea & Spotlight. They’re washable and any handyman can install and hang them. They are also very easily replaced when the time comes!
No. 4 – Floor Coverings
Once again, remember who you want to attract to the property and consider the lifespan of the flooring in relation to its depreciation value. Most people, tenants included seem to prefer hard floor finishes which is great as there are lots of options available. If you’re in a strata building you may need strata approval prior to installing.
Polished timber floors are number one if they’re are an option otherwise similar can be fitted or tiles are another option but tend to date quicker which will have a negative effect on both your future rental yield as well as your property value. Be wary of light weight lino’s which will tear with the first furniture installation. If you need to focus on a single room, the kitchen or bathroom is the best place to start with flooring upgrades.
No.5 – Light Fittings
A well lit room sheds light on the beauty of the home. Get rid of any dark and dusty lamp shades, broken glass lamp shades and any fixtures that are not working. Update them with lighter and brighter options keeping the colour neutral and the shade basic. Remember, you are trying to attract as many prospective tenants in the market place so don’t install anything out of the ordinary, keep it simple!
Finally, remember you are not living in this property. Keep your investor hat on and ensure you make decisions on colours and installations based on attracting as many prospective tenants as possible!
Call Nikita from Living Melbourne Property on 0423 875 106 for more information.
Want to achieve a higher weekly return and attract better quality tenants?