As we head toward the end of the financial year, you may find that you are having conversations with your accountant or your property manager around areas that you can look at to maximise your investment property value and in turn, the returns that come with it.
One of the areas that you can look at our renovations around the property. Many of these may have to wait until you have a short window between tenancies, however, if you budget and prepare in advance, it can help in minimising downtime between tenancies and the potential for rent loss.
Paint and flooring
Painting and floorcoverings are considered to have an average lifespan of around 10 years. Once they reach the end of that lifespan, it can also reduce the amount that you may recoup from tenants, should they damage paint and floor coverings during the tenancy.
Over time they also start to look tired and worn with everyday wear and tear which can impact the rental return. Budgeting for new paint and carpet or touching up floorboards and tiles can help to give the property a quick freshen up between tenancies and increase the potential return.
While they are a larger ticket item when it comes to renovations, there can be affordable ways to replace or upgrade a kitchen between tenancies. Trades and your property manager can work with you within your budget to achieve a result that can improve the value of the property.
In looking at ways to reduce the costs, if the cupboard interiors and layout are still in good condition, you may choose to replace doors, update the benchtop or appliances, or look at new handles for the doors.
In many states, there are increasing requirements around water efficiency and water-saving devices. Many tenants will also be willing to pay a little extra in rent to gain a bathroom that is clean and tidy with all fixtures and fittings that are in good order.
For more affordable renovations, replacing tapware, towel rails, shower heads and vanities may be a consideration. There are also some great options for tile paint if the full tiling of the bathroom is not within the budget initially.
Replacing cracked or older shower screens may also be required, especially if they become an ongoing safety concern.
In recent years, with longer tenancies and people spending more time at home, there is increased focus around outdoor areas and gardens. Installing low-maintenance trees and shrubs can reduce the time that is needed to maintain gardens and ensure that they are less likely to get out of control for those that don’t have a green thumb.
If there are specific requirements that you have around gardens and lawns, it can often pay to employ a gardener of your choice to regularly maintain the areas and keep them up to the standard that you would prefer.