Renting

Benefits Of Renovating Your Investment Property

Renovating your investment property may seem like a wasting money, but making improvements to your investment can reap rewards in more ways than one!

Here we’ve covered some of the biggest benefits of renovating –

1. Increase sale price

Updating and maintaining your property regularly will most likely improve the price when you sell. Even if you have no plans to sell, it is worthwhile consistently keeping the property up-to-date and in good condition in the event that your circumstances change and you need to sell quickly. The best way to keep your investment looking fresh is to paint the walls at least every 10 years. Stained carpet and damaged flooring make the property look less appealing, so invest in a professional clean or polishing. If the apartment is vacant, consider replacing carpet and floorboards.

If you have the means, renovating the kitchen and bathroom will add significant value. This is not always warranted however. It is important that you choose colours, fixtures and furnishings that are timeless. The safest bet is to stick to neutral colours.

2. Attract better quality tenants

Every renter has a story about a landlord who would not even fix a tap, it might be difficult to think from the perspective of the tenant, but it’s important not be dismissive of their ideas or concerns. Obviously, the best time for renovations such as painting and recarpeting are best done when you first buy the property or between leases, but there are many minor works that renters won’t mind happening while they are there. Upgrades to ovens, air conditioning and washing machines are always welcomed by tenants. The effect of updating and upgrading is that existing tenants will be happier and more comfortable, and if you are looking for tenants, you will have a wider selection of prospective tenants to choose from.

By showing that you are prepared to improve creates loyalty with the tenant’s and they are more likely to keep the property in better condition.

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3. Improve energy efficiency and reduce environmental impact

Installing solar panels might seem like a drastic and expensive outlay, but quite rapidly your current and future tenants can reap the rewards. This can make the property more appealing to tenants because the rapid rise in electricity prices is causing real financial stress for renters. Many people, in particular millennial’s, are becoming increasingly environmentally conscious and are renting for longer.

This, like capital works (kitchens and bathrooms) should be really a case by case scenario depending on the property and its value.

4. Depreciation considerations

Most renovations that are completed should be tax deductible and your accountant will guide you in the best time to do this.

So apart from keeping the property in good working order there are many other reasons to updating your rental property.

Trever Molenaar
Trever has worked in the industry selling property for over two decades. This lifelong profession has enabled him to master the art of negotiation. Trever’s own personal values relate through to his professional life 
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Molenaar x McNeice
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