How to maximise your rental property
22 April 2010
The appeal or attractiveness of your rental property can play a vital role in earning the best returns from your investment asset. A well presented, attractive property can make the difference between giving you the choice of three or four good tenants or tempting you to compromise on the type of tenant you would prefer - or worse dealing with a vacancy.
Even in times of strong demand for rental properties it still pays to ensure your property makes the most of its good points, after all, in most cases your property will be just one of many that could be available.
As a property investor, you should not just be looking for any tenant but for a good tenant: one that reliably pays the rent while also looking after the property. We know from four decades of experience, good tenants are attracted to well-presented homes. Which brings us to a few important points to make about ensuring the best presentation of your property.
Of course, a good first impression such as street appeal is always important but there are also several other key areas, most of which don’t involve substantial expenditure.
Bathroom and kitchen: a poor impression here will put the property at the bottom of a tenant’s list of options. Even minor expenditure, like a new mirror or vanity unit in a bathroom, can give an immediate lift. Keep main kitchen appliances up to date.
Cleanliness: Ensuring your property is clean is especially important. Nobody wants to move in to a property that is covered in dirt and grime, especially in hygene-sensitive areas such as the kitchen and bathroom.
Paintwork: Heavily marked areas or cracked walls, extra dark rooms and grimy passageways will benefit greatly from new paintwork. It’s also a good idea to stick to neutral colours. Don’t be tempted to splash out in the colour department as you run the risk of alienating potential tenants who might not be comfortable with an orange lounge room or a dark blue kitchen.
Floor coverings: Regardless of whether you have carpets, tiles or floor boards, regular replacement and repair is always necessary. Steam cleaning of soft floor coverings is a relatively cheap expense but could make a huge difference to the property’s presentation.
Storage: Built in wardrobes are vital these days but extra storage such as linen cupboards and pantries will also greatly add to your property’s attractiveness. Large storage areas such as tool sheds, garages or covered outdoor areas are also another big bonus factor.
Security: Intercom systems, security entrances and window locks are also often sought after by tenants, particularly single occupants. These items also reinforce the impression that the owner cares about the wellbeing of their tenant.
Outdoor space: Make sure courtyards, gardens or BBQ areas are well maintained and safe. Fencing should be secure and driveways or paved areas should be stable and not pose any trip hazards.
RENOVATIONS
More significant upgrades are worthwhile if the property has had steady wear and tear over several years but it’s worth keeping the following points in mind.
* Bathrooms without a bath have reduced appeal.
* People generally prefer a second toilet if possible.
* Heating and cooling are highly valued and can give a property at a competitive advantage.
* Off-street car parking will outweigh any disadvantage from reducing garden areas.
ALTERNATIVELY
If you are not in a position to improve the presentation and amenity of your property you always have the option of reducing the rent to ensure you attract a new tenant.
Even a relatively small reduction such as $10 or $15 dollars a week can make a difference. Of course, a bigger reduction is also worth considering if it means you can secure a tenant rather than have a vacant property.
However, if a vacancy occurs it could be the best time to take a more proactive approach and treat it as an opportunity to refurbish and improve the property. Even minor work can make a big difference. This will improve the chances of attracting a good tenant, increase the rent and help improve the property’s capital value.
But please contact us to discuss your property in detail, we will be able to give you specific advice as to the best options for your situation.
