Considering some rental property renovations? Before you spend your hard earned cash, let’s take the time to explore whether you’ll reap the benefits or if you’re better off spending your cash elsewhere.
Should I Do Any Rental Property Renovations?
As a landlord, you want the maximum return for a minimum cost. It makes sense to think that if we put the money into renovating a rental property, that we’ll recoup it in rent later on. Plus if you have a great looking and usable rental, you’ll attract a better quality of tenant. However, while this can happen, it isn’t always the case, and it’s easy to over capitalise on a property.
There are a few questions to ask yourself before diving into any rental renovations, and they are:
- What will the renovation do to my weekly rental return?
- Should I repair or replace?
- Will the renovation improve life for the tenant?
- Will it over capitalise on my property, based upon the purchase price, location and other local rents
There are some smart rental property renovations you should do, and we’ll discuss those next.
Rental Property Renovations Worth Doing
It’s always best to think about usability and the benefits provided to the tenant when planning any renovations. These can help you decide on whether a large investment is necessary or if you would be better off with a smaller budget. Some of the best renovations are of a low cost and require minimal effort and disruption. They include:
- Repainting interior walls to make the rental bright and airy looking
- Adding new hardware – door, drawer and cupboard handles
- Installing extractor fans in the bathroom, kitchen and laundry to reduce mould
- Repainting or recovering kitchen cupboards and benches
- Installing additional powerpoints and light switches
- Replace any old carpet and lino to improve the appearance. Keep an eye out for high-quality secondhand carpet to use.
- Installing a plain backsplash in the kitchen to keep water and spills from soaking into the walls
- Replacing old appliances, which cuts down on your repair bills too!
- Replace old blinds and curtains with thermal backed ones for warmth
- Add sensor lights outside for convenience
- Consider installing a heat pump or HRV to assist with keeping the rental warm and mould free
Before you start any renovations on your rental, chat with us first! Our expertise as Auckland property managers means we can quickly tell you if it will improve your return on investment or if you’d be better off keeping your money in the bank! Contact us today for a chat about what rent your property could receive.