Aiming to attract quality tenants to your investment property is a smart strategy, so which improvements will give you the biggest return on your investment? With any financial transaction there are three key considerations; Time, money and risk.
If your investment property is vacant for say, three weeks while you make your improvements then that is costing you three weeks rental return, so it’s important to manage your tradespeople efficiently.
On the upside, improving the property will reduce your exposure to a high risk tenant. A better quality property is more likely to attract a better quality, house proud tenant as well as a higher weekly return.
No.1 - Clean: Even older homes can be spotless. This will go a long way to attracting a tenant who values a clean environment. To really present a clean property check light fittings, window tracks and sills, curtain rails and exhaust fans.
No. 2 - Paint: Nothing brightens up a property like a fresh coat of paint. Quotes can vary by a lot so ask your Property Manager for a recommendation. Also keep the colour light and bright with a fresh neutral colour throughout.
No. 3 - Window Furnishings: A light colour, opaque tab curtain is usually the most satisfactory and economic solution. They wear well for the price and can be purchased from stores like Ikea & Spotlight. They’re washable and any handyman can install and hang them. Just make sure you get the height right!
No. 4 - Floor coverings: Once again, remember who you want to attract to the property and consider the lifespan of the flooring in relation to its depreciation value. Most people, tenants included seem to prefer hard floor finishes which is great as there are lots of options available. If you’re in a strata building you may need strata approval prior to installing.
Polished timber floors are number one if they are an option, otherwise tiles are another option but tend to date quicker which will have a negative effect on both your future rental yield and property value. Be wary of linoleum which will tear with the first furniture installation.