Hints and tips to guide you through your property management journey
Are you wanting to add value to your investment property without overcapitalising? We would like to share a few of the best ways to increase both the asset and rental value of your property.
It is amazing the impact a fresh coat of paint can have on a property. A fresh coat of paint, ideally in a shade of white, not only will make your property look lighter & brighter, but will also project a sense of space within the home. Make sure to put aside some of your renovation budget for painting the walls & ceilings. It may also, be a good idea to give the bedroom doors, skirting and architraves a coat of paint too.
There’s nothing more off-putting to tenants than outdated, stained or damaged flooring. If the bedrooms have carpet flooring and is starting to look worse for wear, then it may be worth looking into replacing the existing flooring with a a durable, hard wearing carpet. It’s recommended to select a darker colour of carpet, as these will show up stains less than a lighter colour carpet.
A property with new or well maintained flooring will generally lease for up to $20 per week more than properties with severely damaged flooring. Items such as flooring can also be tax deductible, by getting a tax depreciation scheduled completed on the property. The installation of new carpet at a cost of $2,000 will result in $500 of depreciation deductions in the first full year compared to floating floorboards and tiles at a cost of $2,000, which will result in $267 and $50 of deductions respectively. Therefore, it is worthwhile to speak with a Quantity Surveyor before selecting materials for the renovation as they can provide advice on potential deductions available.
One of the easiest ways to instantly add value is to convert a large room, such as a living room into an additional bedroom or bathroom. Adding an extra bedroom or bathroom to a home or apartment instantly increases the property’s capital and rental value.
For example a simple two bedroom unit in Geelong will generally lease for $30 – $50 more per week compared to a one bedroom unit. Converting an oversized room into two smaller rooms, will allow the property to accommodate more people in the home, which will increase the demand for the property when leasing the home.
Undertaken a small cosmetic renovation in the kitchen, which is commonly referred to as the ‘heart of the home’, can have a tremendous impact on the overall feel of the home, but also significantly increase the tenant demand for your property.
It can be as simple as replacing kitchen cupboards and benches and installing new appliances in the kitchen (oven, cooktop, dishwasher, range-hood). When marketing the property for lease, the first images tenants will look for are photos of the kitchen/ living area, as this is the area that people spend most of the time.
I hope this article has been of some value to you and we hope to hear from you when are you ready to lease your property. Contact Verdi Property Management for a free rental appraisal.