One of the strategize we teach our clients is the value in undertaking some basic alternations to improve the rental yield and rent ability of their investment properties. Some of these works have seen clients receive up to 300% return on their investment annually.
Let me show you what I mean, let’s say you want to improve your rental return and you have $5000 to invest into your property, our first step would be to undertake a review of the property and determine what opportunities are available to improve the property and make it more appealing to the rental market.
We recently obtained a $20 Per week increase in rental and reduced our down time from 2 weeks to just 1 weeks vacancy by undertaking these simple tasks:
- Installing 4 x Fan Light combos (one in each bedroom and one in the living) this cost our client around $1400
- Installing a Dishwasher, this cost just under $1000 Supplied and Fit.
- Robes, we installed 3 Free Standing Robes at a cost of just over $1000
- A/C, we coordinated a small split system unit be installed in the Main bedroom at the cost of $1600
Let’s say these improvements have an average life expectancy of around 10 years some of the items might last longer some might need maintenance sooner but as a guide let’s look at 10 years, in that timeframe our client will potentially receive an extra $14,900 due to these improvements. A breakdown of this is, $20 per week over 10 years, and the one week a year of extra rent because the property has a reduced vacancy. Clearly there are variables that can affect the outcome but the principle of this strategy remains the same, reinvesting back into your current portfolio and have active property managers and property strategists providing guidance for your portfolio can improve the performance of your portfolio and get your money working harder for you.
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