Boost­ing value

The Weekend Post - Real Estate - - Front Page - Cait Bester

GA­manda Boccalatte, prop­erty man­ager, il­lus­trates how putting a fresh coat of paint on a client’s house can in­crease the value. IV­ING your in­vest­ment prop­erty a facelift could sim­ply give you an ex­tra $ 50 in your pocket each week.

Land­lords can of­ten reap ma­jor re­wards by car­ry­ing out mi­nor im­prove­ments to their rental prop­erty with in­creased prop­erty value, greater ap­peal to bet­ter qual­ity ten­ants and higher rental re­turns, says LJ Hooker Edge Hill prin­ci­pal Ross Moller.

Not all im­prove­ments to in­vest­ment prop­er­ties need to cost the earth, he said.

Mr Moller said a fresh coat of paint or new car­pet were sim­ple, but ef­fec­tive ways of help­ing to im­prove the in­ter­nal ap­pear­ance of a rental prop­erty.

“ There are some small and in­ex­pen­sive im­prove­ments that can make a huge dif­fer­ence to the ap­pear­ance of your rental prop­erty and help it stand out from the rest,” he said.

“Ex­ter­nally, it could be some­thing as sim­ple as en­sur­ing that lawns are moved and gar­den beds are in or­der and that paths and drive­ways are clean.

“ For older prop­er­ties a fresh coat of paint or even some new gut­ter­ing or roof re­pairs may help. Land­lords need to en­sure the qual­ity of all work car­ried out is good as shoddy work can eas­ily de­tract from the value of a prop­erty.

“Cer­tain tasks also need to be done by a qual­i­fied trades­per­son.

“Where the bud­get al­lows, up­dat­ing old kitchens and bath­rooms with new ap­pli­ances can also pro­vide added value to an in­vest­ment prop­erty.

“Sim­i­larly, sim­ple in­stalling an air­con­di­tioner or a dish­washer may prompt a prospec­tive ten­ant to pay a lit­tle bit ex­tra for a par­tic­u­lar rental prop­erty.

“If the prop­erty is fur­nished well then you will get a bet­ter rental re­turn and clean fur­ni­ture is de­sir­able. If the prop­erty is fully fur­nished new flat screen tele­vi­sions, a good re­frig­er­a­tor, good beds, lounge and din­ing suites are es­sen­tial to at­tract the best ten­ants and rent.

“ The ten­ants are more likely to take bet­ter care of the fur­ni­ture if it is in good con­di­tion.”

“By com­plet­ing ren­o­va­tions the owner will firstly rent the prop­erty much quicker and also achieve a higher rent. This will re­duce down time and there­fore costs if the owner has a mort­gage.”

Mr Moller said own­ers of units are ad­vised if the block is poorly pre­sented then they should en­cour­age the body cor­po­rate and other own­ers to en­sure the unit block is well pre­sented with the gar­dens well main­tained and each owner mak­ing sure their prop­erty presents well.

Mr Moller said it was im­por­tant for land­lords to do their sums and work out if the po­ten­tial re­turn could jus­tify the cost of the ren­o­va­tions.

“Re­mem­ber also that tax ben­e­fits such as de­pre­ci­a­tion al­lowances on im­prove­ments of­ten make the ini­tial in­vest­ment in ren­o­va­tions worth­while.”

“Also make sure good pho­tos are taken for the in­ter­net when ad­ver­tis­ing the prop­erty.

“I sug­gest pro­fes­sional pho­to­graphs and make sure the prop­erty is on all the ma­jor web­sites.”

Pic­ture: BREN­DAN FRANCIS

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