When it comes to renovating your rental property, thinking about the long-term reward is key. However, considering that renovating a home is never a cheap process, it’s likely you want to get maximum output for the smallest investment possible. This means understanding the expectations of current and prospective tenants, choosing fixtures and fittings that are low maintenance, and addressing potential problems to eliminate chances of further work needing to be carried out in the future. If you’re looking to maximise the return on your property, consider the following suggestions on the ‘best renovations to increase rent’.
Best renovations to increase rent
When it comes to the best renovations to increase rent, a fresh lick of paint can do wonders. If your investment property’s paint job is looking a little bit drab or the colours are too divisive, consider changing things up with a new colour. Repainting is a simple of updating your property that is a relatively low cost way to increase rent and appeal to a broader demographic.
Curb appeal is all about standing out from the crowd, and the best thing is that it doesn’t have to cost you a lot of money. First impressions count, so taking the time and effort to improve your houses façade will go a long way. Ways you can improve your property’s curb appeal include repainting, updating the fence, planting some nice bushes and flowers, or changing the window fixtures. Even a new letterbox can make the home look more cared for!
Gardening is a fantastic investment to make on your property, as your plants will continue to flourish as the years go by. Unlike kitchen and bathroom renovations, garden landscaping is often the last thing people think to do to increase the value of their property. But considering the garden is often the first thing you notice about a home, a well thought out and landscaped garden can have a very strong impact on first impressions. This in turn, will add to your house value as it will attract more interest from prospective renters. Comparatively, a neglected garden can negatively influence your property’s value, with 70% of interviewed real estate agents on Open Agent agreeing that it can lower property value by up to 15%.
Though slightly costlier, bathroom renovations don’t have to require extensive remodeling to be effective. Small updates such as retiling, changing vanity units or replacing fixtures can make all the difference. If your bathroom looks run down or outdated, it can really drive down the value of your property. If you’re looking to rent your property out on premium rates, improving the look and function of the bathroom will entice renters to pay top dollar.
Lighting goes a long way
If your rental property doesn’t have a lot of natural light, consider updating your light fittings. Good quality lighting dispersed generously throughout your property can give the illusion of open space, making it a favourable selling point for prospective tenants. With the right lighting, paint and furniture, a house on the smaller side can appear bigger than it really is – meaning it looks as though it’s worth more.
Install new window fixtures
Installing new window furnishings such as blinds or curtains is one of the best renovations for rental property as it’s a cost-effective way to improve the overall look of the property. Window furnishings are quite a visually noticeable part of a room, and a dated look can really date the room..
Air conditioning and modern appliances
The Australian climate can be very unforgiving during the summer months, so most tenants will expect air conditioning. Once considered a modern convenience, air conditioning is now considered a basic standard expectation by tenants in Queensland. Most tenants will expect an air conditioning system at least in the living room area and for many suburbs it is also expected there will be an air conditioner in the main bedroom. Similarly, modern appliances such as dishwashers will go a long way, as tenants will lean towards choosing properties that have convenient amenities.
Claiming renovations on rental property
Wondering what renovations you can claim on your rental property? According to the ATO, claiming renovations on rental property can include:
- Any work to make good or remedy effects of damage or deterioration of property
- Any work to prevent deterioration of property
- Fees incurred by managing property such as water tax, council rates and advertising for tenants
- Small improvements that increase the amount of rent you charge such as replacing an old dishwasher with an updated dishwasher. Improvements are not deductible in full but can be claimed over their effective life.
We hope we’ve given you a good idea on the best renovations to increase rent. If you’d like to learn more about the best renovations for rental property or would like to discuss rental property management , with a property manager Brisbane Please Contact us and a member from our team will be in touch shortly.