Improving elements of your property so you can charge more for rent makes economic sense if the long-term gains will easily offset the improvement costs. However, before embarking on a makeover be sure to do your cost-benefit calculations and consider whether your current rental charge positions your property at the bottom, middle or upper end of the market.

If you are charging below the average rent for similar age and size units, then it is much more likely that renovating your property will help you make significant gains. Here are some of the best improvement options to add value to your investment property.

Boost first impressions

The outside of your property and front yard are the first things potential tenants see. You can enhance first impressions by enhancing curb appeal. Basic landscaping such as adding plants, laying down mulch, trimming hedges and mowing lawns all make a difference. Enhancing the entrance way with lights, paint and potted plants make it more inviting and upgrading the look of windows with modern but relatively inexpensive blinds will make your property more desirable.

Add a bedroom or separate dwelling

Adding an extra bedroom within your existing property floor plan will allow you to target tenants you might not have previously been able to interest and to charge more. Subject to consenting and district plan requirements, there are a number of ways to do this, from dividing a large bedroom into two to converting a study, dining room or second lounge into an extra bedroom.

In rental properties with large back yards owners can consider building a granny flat or turning a garage into a self-contained unit. This effectively turns the property into a two dwelling residence and when rented out considerably increases cashflow and the property’s value.

Refresh the kitchen and/or bathroom

The state and quality of a kitchen and bathroom are often deciding factors for prospective tenants and usually colour how they perceive the entire property. If either are looking old a renovation may be the best way to increase appeal as well as returns.

Kitchens should be clean, modern and functional, but you don’t need to overspend and completely remodel. Small upgrades such as replacing counter tops, installing new cabinet doors and energy efficient appliances as well as a shiny refrigerator and dishwasher can go a long way in transforming your space.

Similarly, a bathroom can be refreshed by replacing fixtures such as taps and showerheads and installing energy efficient modern lights. A new vanity with storage options increases functionality while regrouting existing tiles can make the room look fresher. 

Change fixtures and replace flooring

Old doorknobs, ceiling fans, light switches and other aging fittings should not be overlooked. They may seem small but they quickly date and devalue your property. Most of the time, replacing these items is cheap but can quickly add value.

The state of flooring also has a significant impact in your property’s appearance. Carpets can be made to look newer with deep steam cleaning and by polishing boards. Floating floors can also be cost effectively installed by DIY landlords.

Paint, if nothing else

Adding a fresh coat of paint is one of the easiest ways to revitalise the look of a property and is something landlords can do themselves or do the preparation for to lower costs.

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.