25 Aug 2017
Increasing the rental income of your investment property isn’t always as tricky as it seems. A minor investment in improvements to your property can help attract extra rental dollars and higher quality tenants, as well as adding to your property’s overall value.
- Install air-conditioning – Some tenants won’t consider properties without air-conditioning so it is definitely a valuable property feature, particularly coming into the summer months.
- Add a dishwasher – Tenants appreciate little luxuries throughout a property. For the minor cost of a dishwasher a property can gain broader appeal and attract a higher rent.
- Create a second bathroom – While adding a bathroom can come at considerable cost it can bring about substantial gains for a property. Some floor plans are more suitable to an extra bathroom than others, for example an old laundry can be turned into a bathroom, or a decently sized walk-in robe.
- Create an extra bedroom – A formal dining room or unused space in a house could be better utilised as a bedroom. An extra bedroom can help attract larger families or larger groups willing to spend more on a property.
- Add a car space – Most tenants want a safe place they can keep the car away from the street. A carport doesn’t need to be expensive. A sail-shade on the driveway can be an inexpensive option for those who don’t want to spend much on an undercover parking space.
- Install solar panels – Solar panels are an attractive bonus for tenants. Solar power will help them cut down on their energy bills, meaning they’ll be happy to pay higher rent.
- Provide entertainment areas – Outdoor entertainment areas such as decks can make a rental seem more attractive and it will help add property value too.
- Make cosmetic changes – Simple improvements such as new paint or floors can help add fresh appeal to your property and help it attract a premium rent.
- Increase storage – Whether inside or out, tenants always appreciate extra space to store their stuff. Consider adding built-in wardrobes or a backyard shed to help add tenant appeal.
- Ask the tenant – Find out if your tenant has a wish list of improvements they would like to make to the property. The tenant may agree to pay an extra $10 a week or whatever price you negotiate to have their specific property needs met.