One way for property owners to generate more revenue from their properties is by making upgrades and raising the amount they charge. Of course, there is a delicate line between upgrades that may boost rental revenue and those that just leave you over-capitalised, so you should exercise caution before making any large purchases or significant repairs.
Increasing the rental income of your investment property is a top goal for savvy real estate investors, and it doesn’t have to be as difficult or costly as you may think. Here are some fundamental yet practical changes that may significantly increase your rental income:
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Refresh the Bathroom
People are willing to spend a higher price to live in a home with a well-designed and functional bathroom. That does not, however, imply that you must spend a lot re-doing the space. If your tiles are old, discoloured, or worn, you do not need to re-tile the bathroom or start from scratch. Simply paint over them using tile paint to give the bathroom a new appearance at a fraction of the cost. Replace any old shower curtains, showerheads, and fittings, clean away any mould, and install a new vanity if necessary. These are very inexpensive improvements that significantly impact the presentation of the bathroom, producing a cleaner and more contemporary place for tenants to fall in love with.
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Do a Kitchen Makeover
The kitchen is the heart of the house, and tenants are willing to spend more for a home with a decent kitchen, just as they are willing to pay more for a nice bathroom. Despite popular belief, kitchen renovations do not have to be expensive; a new coat of paint may work wonders in making a guest-friendly space.
Changing the cabinet doors may completely transform the appearance of your kitchen. If entirely new doors are out of the question, just changing the knobs on the cabinets and drawers may make a significant impact.
Renters, like purchasers, like excellent appliances. If yours are showing signs of wear, consider replacing the dishwasher, oven, or refrigerator. Renters will pay extra for these items since it’s often easier than purchasing their own.
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The More Bedrooms, the Higher the Rent
Is there space for an extra bedroom in your home’s layout? Perhaps your home includes a separate dining room, or some “dead space” that might be turned into another bedroom, or an extra-large room that could be divided into two. Adding an extra bedroom enables landlords to demand a greater rent. While appliances are popular with renters, dedicated laundries are also popular. Renters value having a room where a washing machine and dryer can be used and then stowed away, and they are willing to pay extra for the convenience. Adding an inside washing room does not have to be an added cost. Instead, it is about taking advantage of dead areas to maximise space.
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Add Off-Street Parking
A parking spot may be a big plus, mainly if your rental is in a densely populated location like the inner city or a seaside suburb. The closer your home is to the city, the higher the value of the parking spot. Tenants will pay extra for adding a carport or even constructing a driveway since they would prefer to live in a home where parking isn’t a daily issue.
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Add Outdoor Entertaining Space
An outdoor entertainment area is a big attraction for renters. It will make your home more appealing to tenants and increase the value of your property when you decide to sell. You also don’t have to spend a lot. The addition of a deck, tiling a courtyard, a gazebo, and BBQ, and some outside furniture is a significant attraction for tenants.
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Make the Property Pet-Friendly
Pet-friendly homes are in high demand. Because some rental homes do not accept dogs at all, others that do are preferable. People adore their dogs, and with this in mind, they would much rather pay a little more for a rental home than part with their pets entirely. Pets, understandably, may pose a danger to investors. Place certain property protections in the contract, such as carpet cleaning at the tenant’s cost or pet-related damage being paid for by the renter, to enjoy the benefits of higher rent from pet owners.
Final Thoughts
Some landlords may be concerned about increasing the rent and therefore losing renters. However, if you charge rent following market value, tenants will understand that there is no sense in searching for other comparable homes since the cost is the same or more significant.
Property owners may also raise the rent if they offer a home with new appliances, fixtures, and accessories. Tenants expect to pay more for these items; thus, increasing the rent is a simple method to boost rental returns.
If you are looking for rental property management in Sydney, you can always partner with us at Own Better! We are full-service asset management, helping individuals receive the property management services needed to maximise their returns for their property portfolio.
