Ideas to Maximise your Rent Returns

Written by Paul Kounnas Wednesday, 16 November 2011

Whenever the rental vacancy rate drops below a benchmark of around 3% the rents cycle swings in favour of the property owner.

Nationwide the vacancy rate is now way below that level with some markets almost at crisis point, showing rates of 1.5%.

This remarkable situation has created an opportunity for owners who are now able to make improvements that will not only increase the value of their property but increase the rents, giving both long and short term gains.

And with the building industry relatively quiet there is no shortage of tradesmen ready, willing and able.

But what to do? Where to start?
What improvements will give the best return? Sure, you could go all out and add another bedroom – a surefire way to increase the rental return. But that’s a high cost that will take a while to amortise.

The clever approach is to look at ways to cost effectively increase the desirability and liveability of your property.

A new benchtop in the kitchen, perhaps some splashbacks and cupboard doors, is a good way to start.

Less than $500 will get you a pretty impressive BBQ for an outdoor entertaining area and a verandah extension or even a new deck is not expensive if you approach it in the right way.

Even the bathroom can be given a whole new look for less than $1500 with a vanity and shower. In all of these things the trick is not to shop where you would for your own home, but to shop smart at factory outlets, seconds stores and even via eBay online stores.

Throughout the process, from planning to shopping and installations, don’t lose sight of the fact that you are aiming to make the place desirable.

When you are done, talk to your agent about marketing. Good photos (not a few happy snaps), well thought out copy and the right approach will paint a picture of your rental property that may in itself justify adding another $50 a week to the rent.

Your other consideration with your improvements and your marketing is the target market – aim for young professionals in an upper demographic.

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written by anna, November 17, 2011

Sure you improve the home, the tenants come in and they dont look after it. What was the purpose of giving them a nice bench, an outdoor entertainment area or a new vanity and shower that when they leave you will more than likely need to renovate again. Sorry I really dont agree. Give them a clean safe home but dont renovate just for an extra $10.00 a week. It will end up costing you more than the extra you made on rent.

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