The Top 8 Renovations That Increase Your Rental Yield
Did you know that nearly one-third (32.91 per cent) of Brisbane’s 1.13 million residents live in rental properties?
If you own one (or a few!) of these properties and want to increase your rental yield, consider investing in some strategic renovations. We made a list of the best upgrades that will add value to your Brisbane property, along with a few key things you need to know.
Why should you renovate your property?
When you renovate your rental property, you can radically increase the amount you earn each month from your renters.
Here are some specific ways renovations can lead to more rental income:
Reduce Maintenance and Operating Costs — An outdated rental property is more likely to need repairs, which eat into your profits. By renovating you can proactively fix maintenance issues (vs kicking the can down the road).
Stand Out from Competitors — Renovating and updating your investment property will separate it from other rentals in the area (and lower your overall vacancy rate).
Attract Quality Tenants — Quality tenants are the kind who pay rent on time, renew their leases and take good care of the property. A renovated home has a much higher chance of finding people like this.
Qualify for More Tax Deductions — You can deduct the cost of many renovations from your annual tax bill.
Increase The Property Value — Renovating your investment property also increases its value and allows you to get more money when you decide to sell it in the future.
8 Renovations That Increase Rental Yield
If you want to experience the benefits of renovating your Brisbane investment property but aren’t sure where to start, consider one (or more) of these 8 renovation ideas:
1. Fresh Coat Of Paint
Something as simple as fresh paint can breathe new life into your rental property and make it much more enticing to potential renters. It helps you cover up imperfections, and it also makes the apartment or house feel newer.
If it’s been a while since you painted your property, now is a great time to do so. Just be sure to stick to neutral colours like grey, tan, white, or cream. That way, new tenants have a blank slate to add more personalised touches to the property.
Honestly — you’ll be amazed at how big of a difference this one thing can make!
2. Do a Kitchen Makeover
The kitchen is one of the most frequently used rooms in apartments or houses of any size.
If you’re going to renovate one part of the property, the kitchen is a good choice. After all, it’s easy to justify raising rental prices if you’ve recently updated the property with all new appliances or brand new countertops.
Don’t want to break the bank on kitchen renovations? Consider simpler upgrades like painting, refinishing the cabinet doors or updating the hardware.
3. Update the Bathroom
Your tenants will also appreciate an updated bathroom.
If it’s been a while since you replaced the tiles, you’d be amazed at how dramatically that can change the bathroom’s appearance. You can also make simpler changes like replacing the shower head, taps, light fixtures, or vanity units.
These updates are fairly easy and inexpensive, but they can still yield big returns. Just make sure you do it effectively. If you’d like a professional opinion to make sure that what you’re investing in will generate a return (and not go overboard), contact our team.
4. Replace Light Fixtures
In addition to replacing the light fixtures in the bathroom, you might want to invest in replacements for the lights in other parts of the property.
New light fixtures (with quality light bulbs) can refresh dim properties and make them feel more expansive.
This is an especially good update to make if your property doesn’t get a lot of natural light. Brightening things up can go a long way toward increasing your property value and making it more enticing to potential tenants.
5. Landscaping
Good landscaping can make even the oldest, shabbiest properties look more appealing.
Make sure the lawn is regularly mowed and the garden is free from weeds. If you’re going to plant flowers or shrubs, make sure they’re low-maintenance ones that won’t require a lot of upkeep from a landscaping team.
Along with improving the landscaping, you can also boost your property's curb appeal by cleaning and repainting the front door before showing it to interested tenants.
6. Make Properties Pet-Friendly
Roughly 61 per cent of Australians own pets. If your properties are not pet-friendly, you could be missing out on a lot of potential rental income.
To make your properties pet-friendly without creating more work for you, consider removing the carpets and sticking with wood or vinyl flooring throughout the property. This helps to prevent lingering pet smells.
You can also paint the walls with heavy-duty paint that is more resistant to the dirt and damage that tend to follow pets wherever they go.
By the way — if a pet causes damage to the property the tenant is responsible for fixing it.
7. Improve the Backyard or Outdoor Living Area
If your rental property has a backyard or patio, consider making some improvements to that area. Most tenants love the idea of being able to relax in the backyard at the end of a long day, so consider making it possible for them to do so.
Mow the grass — if there is any — and power wash the patio so it’s free from dirt and cobwebs. You may also want to buy some inexpensive patio furniture for your tenants to enjoy.
8. Upgrade Your Security Features
Your tenants want to feel safe while living in your rental property. They might even be willing to pay more in rent in exchange for a greater sense of security.
Improve security by investing in quality locks — and making sure all windows and doors lock properly before renting out the property. Consider installing security doors, motion lights, and an alarm system as well, for added peace of mind.
If your property is a single-family home, you might also want to install a fence around it.
Ready to Renovate?
After reading about the impacts renovating can have on your rental yield, do you feel ready to start or would you prefer some more personalised advice for your property?
If you’re hesitant or unsure of which renovations to choose, we can help. Hot Property Buying Agency is a buyers agency that offers assistance with property purchasing, portfolio management, vendor advocacy, and renovation consulting.
Contact Brisbane team today to learn more about our renovation consulting services, as well as any other property support you need.