PM - Getting budget right for your investment property

Be careful when considering renovations and take the advice of your property manager as to what type of renovations will increase the rental value and what tenants actually desire in their search for a rental property.

By knowing what tenants are looking for and tailoring your renovations to market expectations, you are spending your time and investment dollars towards deriving additional income and not simply towards improving your property.

Remember to retain all records and invoices. It is important to note that the cost of renovations for an investment property are deducted off capital gains tax, not deducted off your income tax.  Speak to your accountant regarding the tax implications of any renovation work that you undertake and also consider obtaining a tax depreciation report so your renovations can be depreciated for tax purposes.mean fewer vacancies and a property that is well looked after!

Good property preparation will achieve a better return

First impressions count – and when it comes to leasing your property, presentation matters now more than ever before. Not sure about investing in the presentation and quality of your rental property? Think about this: when we enter a store with high expectations and money to spend but experience a dingy environment and shabby goods – our funds stay firmly planted in our pockets as we exit the business’ doors. Why would the response of a tenant looking for a beautiful, well-presented and well-appointed property be any different? 

In a property market as competitive as our own, impressions are quickly formed - and once they’re in place – are hard to budge. If you are about to re-lease your property, now is the time to think about prioritising presentation and improving your asset to increase your revenue. With a little thoughtful updating and funds judiciously spent, forward-thinking landlords can nab better quality tenants AND higher rental returns in the long run. Here’s why.

Generation Rent

The Great Australian Dream isn’t what it used to be – with many urbanites deciding to rent instead of buy, prioritising travel, designer living and proximity to work over having a mortgage. This lifestyle-oriented market of tenants look to secure properties that are well-cared for with all the mod-cons, and they’re prepared to pay for quality and style. 

By improving your investment property with necessary comforts such as air conditioning and effective heating, adequate storage in bedrooms and routine updates (think fresh paint and carpets when necessary, rejuvenating wet areas rather than leaving them to age), you are attracting a tenant who wants it all … and is prepared to pay for the privilege. Consider upgrading your investment property – and think of it as a small upfront investment in exchange for years of quality rental returns. 

A Professional Finish

When it comes to marketing your property and capturing tenants who value quality, presentation also counts! Consider furnishing your rental property during its leasing period and having a handful of professional photographs taken – such professional touches will ensure your home stands out from the crowd, rewarding you with a bevy of willing tenants and short ‘days on market’ to lease.

To sum it up: by investing in your rental property, you are likely to have tenants who will keep up your good work – who doesn’t want a fresh, well-cared for home?