31 Jan 2011
If you own an investment property then you obviously want to get a high a return as possible.
You can make the most of a real estate investment by making smart choices with the location and the property type, but there are a few improvements you can make once you have bought the property that can also help you make better returns.
Refurbishing your rental property can allow you to increase your rental price and it may help you attract quality, long term tenants.
Installing air-conditioning or insulation may also help attract long term tenants and insulation has the added benefit of blocking out noise.
Make sure your investment property is secure and safe. Tenants like to feel like themselves and their belongings are well protected, so it can help to have secure locks, security doors and alarms at the property.
Between tenancies it might be a good idea to undertake minor renovations. A fresh new bathroom, kitchen or paint job can all help win over tenants and allow you to charge higher rent (beware of overcapitalising though – ask you agent for advice).
If you own enough land you may be able to subdivide it, subject to council approval. If you can subdivide than you can potentially build another house or unit and receive extra rental income.
Make sure your property management carry out regular inspections and keep on top of maintenance issues. It’s much easier to fix a small problem, rather than fix a major one that has been left too long.
Apart from making improvements to your property also make sure you’re keeping up to date with current rental prices in your area, as you may be charging less then the average. Ask you real estate agent for any more advice.