When investing in property for the purpose of increasing the value of your investment as well as gaining higher rental returns, it is essential to have the requirements and the needs of tenants on your mind whilst undertaking such work. The whole idea is to make your property attractive, comfortable and functional for the tenants and making it valuable for yourself. These renovations can be purely cosmetic or more comprehensive in order to align your property with the rental market and it’s demands however, this will be dependent on the condition of your investment to begin with. Given that the current rental market in some areas is still a “tenants” market, they are attending rental open homes with a mental checklist of their needs and wants. And why wouldn’t they when there is so much to choose from!

Some of the expected features are things such as available parking whether it be a garage or a covered carport, air-conditioning, security screens, built in robes, storage space and weather proof entertainment areas. Whilst some of the above may not necessarily increase the value of your asset, it will bring your home in direct competition with comparable properties, which will help minimise the vacancy of your investment. Generally, if your home needs more than a cosmetic makeover, items such as fresh internal/external paint, new flooring (tiles, timber, carpets), building an entertainment area, and air-conditioning can increase your weekly rental income by approximately $40-$70 per week.

The biggest mistake some investors make is by doing renovations such as converting a third or fourth bedroom into an office with a built-in desk. This not only limits your chances of leasing your property but also makes it less attractive for the prospective tenants. The whole idea is to not over capitalise your investment but rather focus on the add-ons to increase your weekly rental return and being realistic about the amount of money spent on renovations. If your investment property has a kitchen and bathroom which could do with a bit of TLC, you are better of installing a new kitchen and bathroom as again, this will increase the value of your investment, achieve a higher rental return and you will avoid over capitalising in this instance.