How to renovate an investment property
If you are thinking about renovating your investment property, there are a few things you need to consider. From creating a budget to picking the right fixtures and fittings, getting the administration and project management right is key. Here, we outline some of the main things to consider when you renovate an investment property.
Determine a budget and the available deductions.
Renovating a property could result in some larger than normal expenses for your property. Make sure you put together a budget before you get started. It is also a good idea to determine which expenses can be fully deducted in the current financial year and the other expenses that will need to be depreciated over several years.
Talk to the body corporate early.
It can take a while to get approval on potential works from some body corporates. If your property is in an apartment building where you will need approvals, talk to the body corporate and put your case forward early. Include rough timelines for the renovation, your plans for the property, any safety precautions you need to consider and note when noise disruptions may occur.
Make a project list.
You may complete this step when you are putting together your budget. Make a list of all the parts of your rental property that you want to upgrade. The general rule of thumb is to spend approximately 3 to 4 per cent of the property's value on kitchen upgrades and under 1 per cent on the bathrooms. When you are thinking of the improvements on this list, consider what will give the property "wow factor" for potential tenants. And do not forget to budget 10 to 20 per cent for contingencies.
Keep neighbours informed.
Let neighbours of the property know that renovations are taking place and when noise disruptions may occur. If it is an option, you can also display a notice in the building's common areas.
Be mindful of fixtures and fittings.
A few careful decisions on fixtures and fittings can make all the difference when it comes to attracting quality tenants. Leave installing new carpets until the end of the renovations to ensure everything is in good condition and fitted properly. Further, any new kitchen benchtops should be heat, scratch and stain resistant. And do not forget to include plenty of power points around the property, especially in the kitchen, living areas and bedroom.
Renovating your rental property is a great way to increase the value of your investment, attract higher rental prices and ensure you find quality tenants. Remember, a tenant wants a blank canvas to work with when they move in, so keeping everything neutral and fresh is important and will pay dividends in the future.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.
PS: What a client had to say;
I would also like to take this opportunity to thank you for being an amazing property manager, it has been an absolute pleasure dealing with you and you are an amazing women. Thank you for being you, we all think you are awesome.
I would also like to wish you and your Family a very Merry Christmas and a safe and Happy New Year.
Looking forward to 2017, I hope you are too
Jodie King & Chris Nugent
- Jodie King & Chris Nugent
I have known Jennifer for 8 years, I first met her when I needed to list my property for sale.
The property was situated at 11 Alice Street Mango Hill, Queensland.
From the start she was very friendly and professional, I was working away at the time and had no-one to look after the pool and garden while I was not there which made attracting potential buyers very hard, but through persistence, road blocks and other unseen forces Jennifer eventually sold my property.
Jennifer is a very hardworking professional and caring agent, there are no smoke screens or false promises from her, not like other agents.
I would highly recommend Jennifer to look after the sale of any property.
Thank you again for all the effort you put into selling my place.
- Lance Field
Robert and Gaelle
Just a short note to say thank you for acting on our behalf in the sale of Grayling Court house.
Behind the scenes, the sale was comparable to a Cecil B. DeMille production of The Ten Commandments.
Robert and Gaelle