Renting out an investment property is a good way to enhance your income. But some minimal investments on upgrades and renovations in your rental property can help you earn even more income than you imagined. You can even undertake some of these tasks on your own if you're handy around the house to eliminate the cost of labour.
Replace Timeworn Carpets
Old and out-dated carpets can dramatically reduce the curb appeal of any property, which in turn will push down the amount tenants are willing to pay to stay there. In fact, most prospects will point out these issues and may even offer less rent than you're asking for. Keep in mind that you don't need to install carpets at the higher end of the cost spectrum. You just need the property to look refreshed and inviting. Inexpensive nylon carpets are as low as $30 per square metre, while low-pile nylon can start from just $40 per square metre. A small upgrade like this can fetch you more rental income per week to maximise your return on investment.
Refresh With New Coats Of Paint
Chipping paint and discoloured walls can make your property seem timeworn, which will reduce the number of tenants applying for your property – especially with the plethora of new building developments across all of Australia's major capital cities. To bring your property on par with others in the market, refresh it with a new coat of paint. For a 2-bedroom home with a laundry and bathroom, you may be quoted between $2,500 and $3,500. If you're handy with painting and the property doesn't need much preparation, you could even eliminate the cost of labour and undertake the painting job on your own. You can easily buy paint from any home improvement store – a relatively inexpensive investment.
Clean Up The Property Thoroughly Before An Open House
Before tenants inspect the property, you'll want to ensure that it is thoroughly cleaned – allowing you to showcase it in the best light. Tenants form an impression of the property from the moment they step through your doors, so anything that looks dirty and drab can put them off instantly. Make sure your walls and windows are cleaned, while floors are washed and polished. On an average, a 2-bedroom unit that is less than 100 metres will cost you just $100. But the investment is well worth it when you notice that tenants are willing to pay more to move into a clean and swanky property.
Small investments can make a big difference to your rental income, so consider them when you next put your property on the market. An experienced real estate agent can give you sound advice to help you further improve your rental yield.