Renovating Your Investment Property
The rooms you should renovate to maximise your rental returns
When it comes to renovating specific rooms in your rental property for higher returns, some rooms will deliver better results than others. There are certain rooms in a home that, when in pristine condition, will maximise your rental returns. Projects such as updating a kitchen are a relatively large investment, while things like freshening up the paint and carpet in the master bedroom are less costly.
In this article, we look at the best rooms to renovate to maximise your rental returns.
Renovating a kitchen can do wonders in adding value to your home, but it comes at a cost. Recent research by Improvement found the average cost of a kitchen makeover in Australia is $22,000. If you keep within the rule of thumb that you shouldn’t spend more than five per cent of your property’s value on a renovation, updating the kitchen in your investment property could be a worthwhile option for some people.
The amount you spend on your kitchen renovation will depend on the finishes and what you choose to update. No matter what you update, make sure the final look fits in with the era of the property, so it’s cohesive. Common kitchen updates that can help you maximise your rental returns include adding appliances such as a dishwasher and creating another place for people to gather with a breakfast bar deep enough to add some stools.
Beautify the bathroom
Bathroom updates can range in price as much as a kitchen. For example, you may spend upwards of $10,000 on a full bathroom renovation or less than $5,000 on smaller-scale updates. It’s important to remember that bathroom updates can be fiddly. Factoring in a 30 per cent allowance on your budget will ensure you have the money to spend if something doesn’t go as planned. Top updates that will help you attract good tenants and even better rental returns include a modern vanity and basin, slimline shower screens and a deep, luxurious bath if space and your budget allow.
Add an extra bedroom
Converting an extra living space into a bedroom can be done for around $10,000, providing there isn’t too much structural work required. Adding an extra bedroom can open your property to many additional prospective tenants while improving the likelihood of significant capital gains when it comes time to sell the property.
If you’re thinking of updating your rental property, focusing on the kitchen, bathroom and potentially adding an extra bedroom could see you not only maximise your rental returns now, but you could attract a higher price when you sell the property.
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