As an owner of an investment property, your goal is to maximise the rental income of your house or apartment. Having longer-term tenants reduces re-leasing fees, advertising costs and periods where rent is not being earned. Here are several suggestions for keeping your tenants happier and increasing your rental income.
Home Comforts
The non-essential luxuries that improve our lifestyle have become a key factor in increasing selling prices and rent for many inner-city homes. A split heating and air conditioning system (which for many is essential) is a great addition to one or two rooms in the house. Fully installed, a 3.5kw split heating/air conditioning system would cost between $2,500 and $3,500. Less expensive home comforts like ceiling fans, heated towel rails and higher quality window furnishings can give you the competitive edge in the rental market. With extreme weather across Australia, heating and AC are important features the discerning renter is looking for.
New Roller Blinds
New roller blinds are a relatively inexpensive way to spruce up a rental property. Roller blinds are space-efficient and unlike curtains, they fit right in the window, taking up no more space than the size of the window itself. Roller blinds don’t collect dust, either, which makes them great for renters with allergies. Roller blinds are also safe for children and pets. If you are renting your investment property fully furnished, you may wish to choose blackout roller blinds which provide UV light protection and ensure greater privacy for tenants.
New Appliances
Investing in new appliances and technology is often a great way to not only upgrade the property but to modernise a space such as the kitchen, without having to do a full renovation. Dishwashers, plasma TVs, video intercoms, washing machines and video security systems are also options. Even a really nice coffee grinder is a cost effective appliance to attract higher rental yields. Choosing a high end brand for the kitchen will definitely make the right impression and can help command a higher monthly rental. Savvy landlords often look for showroom display stock on sale and refurbished appliances.
Energy Efficiency
For rental properties, while your tenant pays utility bills, it is wise to consider energy-efficient lighting, water tanks and solar panels. A Nest Learning Thermostat will learn the temperatures you like and automatically program itself to help you save energy while keeping you comfortable. While this may not increase rental returns, it is these features which renters are attracted to. There may be rebates from utility providers so it is definitely worthwhile exploring these smart energy efficiency options while assessing the property market.
Open up the Living Spaces
Understanding the original floor plan of your property is a great asset when it comes to simple and low-cost renovations. Older properties tend to have smaller rooms which can be transformed with a simple reconfiguration of the internal layout. Retaining supporting walls but knocking down others could increase room sizes, creating a more open-plan layout or even adding whole extra rooms.
Home Offices and Granny Flats
With more people working remotely and the aging population in Australia, home offices and granny flats have become very popular. Styling your rental property to have a desk, chair and laptop can increase rental income potential. Granny flats packages for design, approval and construction are being advertised in Australia for all-inclusive costs of $100,000 for a 1 bedroom flat.
Whether you are looking to maximise rental returns Tin the short term with affordable cosmetic improvements to your rental property or through more considered structural changes to the property, there are opportunities when it comes to increasing the rental yield you receive from your property.
DISCLAIMER
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions. Click here for full Terms of Use.