You’ve set your plan in motion, gained the right advice, been to the banks and purchased your first (or second or third) investment property – congratulations! Now to get it ready to lease. First call: to renovate, rejuvenate or rent.
The idea that any property can be a rental is true, to some extent, but what you really want is to ensure a good return on your investment. And in some cases, your initial purchase of a property to lease may require a little extra investment and/or elbow grease to have it looking its finest.
Renovations aren’t for the faint of heart, and the fact of the matter is it may not even be necessary. Knowing when and where to spend extra should be well considered.
If you’re beginning with a somewhat blank canvas, consider what will give you more bang for your buck. Perhaps internally the property is in good condition and just needs a bit of refresh.
If replacing things like flooring, or countertops, even window fittings, think liveability and durability. Over the course of your investment’s life, there may be countless move in/out days and while care is [mostly] taken, there may be the occasional scratch or bump. There are countless products on the market – go for long wear and remember that repairs completed now may benefit the property in the long run.
A fresh coat of paint, some basic landscaping and a little attention to the entry way may be the boost your property needs. First impressions count and curb appeal may make a big difference to the interest your property draws.
In most cases there’s no need for a big backyard blitz, but by keeping things neat and tidy you’re setting expectations for tenants to keep things in order.
Some minor repairs, such as replacing fixtures may be enough to liven up a kitchen or bathroom up to give it a modern edge without the need for a full renovation.
If more work is required, particularly in wet areas, it’s best to get the job done right the first time as these are often costly areas of the home to renovate. Making timeless choices – rather than personal preferences – when it comes to redecorating may prove beneficial in the long run and give tenants the opportunities to individualise the property whilst residing there.
If your property needs more than a weekend working bee, make sure you consider where to focus renovations that will meet the needs/desires of potential tenants.
Research other properties in the area and consider how your property will fair in comparison. Could the property benefit from a dedicated study space, or perhaps an open plan living space. Is outdoor living just as important and do other properties have adequate heating/cooling. While there’s no need to be a copycat, understanding what features other properties have in your market will help when it comes to finding the right return for you.
Any structural work should require the expertise of tradespeople, and, if required, correct approvals met prior to commencement. Any electrical or plumbing work needs to be completed by a licenced professional.
Whether your property is ready to rent, needs a little TLC or a major overhaul, making the right choices will help your investment reach its full potential.