So, your tenants of ten years are moving on? You have some average tenants and would like to do better? You would like to increase the value of your rental property so you can buy another one?
These are all great reasons to look at doing a quick, cheap renovation or at the very least a tidy up of your property.
If you are lucky enough that you have had long term tenants for many years, the chances are you have had to do minimal cosmetic work to your rental property; the carpet will be the same, the paint will be the same, appliances and other items in the property will be the same- run down and“doing the job”. If you have had long term tenants your rent is probably under where it could be as well; in exchange for long tenure, Landlords do tend to sit slightly under market rent to keep good long-term tenants.
On the other side of the coin if you have fairly average tenants and a stream of them, renting the property for a year and then moving on with a ton of wear and tear following them out the door, a quick renovation might be just what you need to attract a better longer term tenant.
A quick in between tenancy renovation can be arranged through your Property Manager. We have many reliable tradespeople that we work with regularly; they give us competitive pricing and most of all are reliable.We can call on them at short notice to get quotes done and work under way.
A quick renovation in between tenancies can tidy up your property immensely. This makes it much more attractive to a new good quality tenant who will make the nice newly renovated property their home and likely stay much longer. If you give tenants a nice newly renovated clean property, they are more likely to try and keep it that way. It will also appeal to a larger range of good quality tenants.
The other major upside of a quick reno is the ability to charge a higher rent. If you have a clean tidy property for rent it is worth more than the falling apart property of the same size next door. There will also be more competition to rent this property -supply vs demand. This gives you the pickings of many tenant options rather than having to take the only half decent tenant willing to rent your falling apart property.
Now when I say quick renovation, I do not mean a full blown$100K make- over like on the block. You would be surprised how much a property can be transformed by new paint (interior only is fine). If you want to paint the outside too by all means, go for it! New carpet and lino, there are various qualities of flooring and a good hard-wearing rental carpet is not as pricey as you would think. New curtains or blinds (nothing worse than mouldy old net curtains). This is the minimum that can completely transform a property. Of course, if your property is really in need of some love, a kit set kitchen and Bunnings bathroom fittings can really transform the home and make it look almost brand new.
Do not forget to mow the lawns and tidy the gardens, trim any trees and remove any exterior rubbish. The outside of the property is thefirst thing tenants will see when they come to view the property- street appeal is important!
As an example, I have just recently arranged a quick in-between tenancy renovation for a Landlord. It consisted of only interior paint throughout, walls and ceilings. New carpet throughout, and the existing lino that was still in good shape. New curtains and nets. The total cost of the renovation to the Landlord was around $10 000. The rent went from $465.00 to$565.00 within three weeks. The new tenant is immaculate and will be there fora long time.
Finally, a quick reno and higher rent return can make your property worth more! This is good for the bank if you are looking at buying more properties.
If you currently have a rental property with us and would like to look at getting some work done contact your Property Manager and they would be more than happy to get some pricing for you and give you an idea of what rent you might be able to achieve with a tidy up.