What will get you increased rent return: Renovating for a modern look or an extra bedroom?
One such issue to consider is where best to direct your funds: on renovations that update a property’s tired old features, or on an addition that adds more space and function to the room?
Both strategies can improve the amount of money a tenant is willing to pay in rent, But will one get you more rent?
When looking to increase the rent from your investment property through additions or renovations, it’s important to think strategically about which updates are going to provide the highest returns.
Research the rental market, so that you have an understanding of who you are targeting and at what price you can get is imperative before you begin any renovation.
How do you decide which is going to offer the best bang for invested dollar?
The benefits of a new bedroom
If you are looking at a new bedroom then the first thing that you want to do is ensure that the property is spacious enough to allow for the addition, and that you won’t be encroaching too much into the current living and dining spaces by redefining that space, this could have a negative effect.
Always ensure you have crunched the numbers before committing to any big renovation project.
A superb two-bedroom house will be better than being a poor or small 3-bedroom option. While a 3 bedroom house may get an increased rental price per week, potential tenants may find it less appealing and you may in the long run, find it harder to lease, meaning increased vacancy times.
Additions can tend to be very costly renovations, he adds, especially if it involves adding a new level or wing to your Home.
Adding a bedroom is one way to obtain a higher rent. Before you think about going down this path, you need a good understanding of your property’s layout and what you can and can’t do according to council, you do not want to make the house into a rabbit warren layout just to get a extra bedroom. Also consider the bathroom and toilet options.
The modern makeover fix
The good thing about a cosmetic fix is that you won’t be making structural or layout changes, which means that you are able to better control how much you spend, and the time taken.
You may decide that a simple refresh, such as a fresh coat of paint, new flooring and modern fixtures, is all you need to do, as a cost-effective way of bringing a tired property back to the present.
Giving your investment property a modern makeover is a great way to improve the desirability of your property to potential tenants and obtaining a higher rental price.
A cosmetic makeover should include looking at the kitchen appliances, the bathroom vanity, light fittings and blinds. Keep in mind that what you outlay for some of these updates won’t always result in a increased rent price, but may make it easier to rent and reduce vacancies.
Always shop around for quotes and pick durable materials and brands that will stand up to tear and wear of tenants. The first quote, cheapest or dearest quote may not always be in your best interest.
In general Renovating for an extra bedroom or living space will add more Rental Profit dollars to your rent return each month, but if the property becomes poorly designed or cramped as a result, you may have a tougher time finding a tenant