There are only 2 types of properties on the rental market,
- Properties where the for lease board goes up immediately when the owner or current tenant decides to move
AND
- Properties where the owner STOPS and asks, is my place READY for a tenant?
The first option is straight forward.
The second, not. There are varying degrees that owners go to in getting their properties ready and it’s basically a time vs cost vs benefit balancing act.
To help you clarify, here are some MUST do’s and some WOULD be good to do (if time/budget allows);
The MUST Do’s
- A BIG clean
In an ideal world the house is in a mint clean condition each time before it goes on the market and everyone is super happy.
Arghh…… (wishful thinking!)
In the real world, people get the weekend to move. Perhaps an extra day if they have a nice boss.
They shuffle through all the stuff they’ve accumulated over the years,
and,
60% goes on the front lawn, the remainder gets packed.
They do a quick speed clean and hand over the keys.
If the agent subtly gives you their cleaners’ contact,
TAKE IT!
And, call in the professionals!
Items that can be overlooked are windows, exhaust fans, ovens, insides of cupboards/draws in kitchen, bathrooms and wardrobes, scuff marks on walls and tidy of garden areas beyond a quick mowing of lawns.
- Working and functionality check
Check that all appliances and amenities are in working order; heating/cooling, hot water service, dishwashers, smoke alarms.
Are there any cabinets/doors that are loose, hinges needed tightening? This is easier and cheaper to address before the doors completely come off the hinges.
Leaking taps?
Are there keys for all lockable areas available, including outdoors (gates, sheds)?
Are all the lights working?
Action the above and your new tenant feel welcome and looked after, and will usually feel obliged to return the favor by keeping the place as their own.
Also, there is nothing worse than getting a phone call with complaints straight after the tenant has moved in. This can create tension in the owner/tenant relationship from the start and linger when future issues arise.
As the owner, being prepared ahead means you’ve done things in your own time as opposed to being demanded upon.
The WOULD be good to do!
The focus here is on the aesthetic aspects of presenting your property for rent and standing out from similar homes in your area, competing for tenants.
It requires $$, so if you haven’t any to spare, STOP reading. Implement the MUST Do’s.
- Fittings
Have a look at the floor coverings and window furnishings.
I have come across properties where the blinds have been so old, I have been afraid to test them, fearing they would just break if the cord is pulled.
And, carpets stained to such degree not even a super turbo 5,000 steam cleaner could save them.
Investing in new blinds and carpets/flooring can give the property a complete face lift. It will add capital value to your investment and contribute to your list of depreciable items for tax purposes.
For brand new homes, simply installing blinds before the property is advertised can put you steps ahead, especially when others in your estate will not have this done until months into the tenancy.
- Walls
Nothing like the smell of a freshly painted home.
Well, perhaps NOT the actual smell, but the “WOW” reaction tenants have immediately as they step in.
We associate fresh paint with words like, new, fresh, clean, light, and it gives tenants a blank canvass to make their home.
As a guide, investment properties usually need a fresh coat of paint every 5-7 years.
- Fixtures
Enter ‘renovation mode’.
At some stage of the investment property life cycle, the renovation question will pop up?
Should you go there?
Ultimately this will be answered by what you are seeking to achieve from the renovation.
In many cases, the return on investment from a rental income viewpoint alone may not be justifiable.
However, there is usually a substantial uplift in the capital value, potentially unlocking additional equity that may be utilized to expand your investment portfolio.
Renovated properties are also more likely to appeal to quality tenants compared to homes in original condition.
So your renovation investment is usually better protected, as you have someone that has made your home their home.
This is invaluable. It’s impressive having properties within our portfolio that are 10-15 years old, which are on par with near new properties.
In today’s market, and with influence from reality TV like The Block and House Rules, we see many smart renovations.
Savvy investors know how to remove the right degree of emotion to avoid overspending while making purchase decisions that still appeal to what tenants and potential buyers want.
If you are new to renovating, invest some time to research ideas and concepts that you can then apply within the context of your property location and features.
Seek advice from local agents as to what adds value from both a sale and rental perspective and what works well for the area.
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Written by: Duska Maric
