Renovating your rental property: why and when
If youre not getting the results you want to see from your Perth rental, it may be time to make some changes to your investment property. Property renovations can be a great way for investors to increase the appeal and maximise the value of their investment. However, before you rush into any big decisions, youll need to consider whether the time is right to renovate.
Why renovate your rental?
Add value to your property – Whilst renovating your investment property may cost you initially, the right renovation could add significant value to your Perth rental. The exact value added will depend in part on the location of the property and the nature of the property renovation. Before renovating, investors should consider speaking to their property managers and a finance professional to get a projected value the planned renovation could add to the property.
Flexibility and functionality – Whether youre looking to add additional space or increase the overall functionality of your Perth rental property, a renovation could be the move you need to make to attract your desired tenants. If your investment property is targeted towards families, for example, are you offering them the space and features they require? Its worth researching similar properties in the area and speaking to your property management team to find out whether the proposed changes will appeal to your target market.
Maximise rental returns – Renovations are a great way to make those modern improvements that could attract potential tenants. By improving the quality of your Perth rental and the items within it, you will be able to boost the appeal of your property and increase your rental rates as a result. You may also be able to claim these renovations as depreciable, so its worth keeping a record of any updates you make in preparation for tax time.
Increase sale price – If you plan on selling your Perth investment property in future, a well-planned property renovation could see you making a greater profit from the sale. When planning a renovation for your rental property, you will need to consider if and how the proposed changes will appeal to future buyers, as this will determine how much profit you could make when it comes time to sell.
When should I renovate?
When done right, renovations could see property investors maximising returns on their Perth rental properties. However, property renovations are often accompanied by a lot of stress and financial hassle. So how do you know when the time is right?
Rule number one of renovations is that they should never be rushed. Ultimately, they should be carried out when your budget and schedule allows for it. Before committing to the big makeover, you will need to ensure you have the means to finance your venture. A finance professional will be able to take you through your funding options to ensure you can afford the proposed changes. You also need to remember that you wont be earning rental income during the renovation, so you will need to factor this into your overall budget. Finally, you should never renovate without research. Before you implement any big changes to your Perth rentals, make sure you speak to your property managers to find out whether your proposed updates will be worth your while (and your wallet).
The right advice from Rentwest
Looking to increase the value of your Perth investment properties? The property management team at Rentwest can provide the advice you need to lead a successful property investment venture. Whether youre seeking greater rental returns or looking to increase the appeal of your Perth rentals, the property management specialists at Rentwest can help you make the decisions and changes you need to make the most out of your investment.
To find out more about Rentwests property management solutions, contact us on 9314 9888 or email us at email@example.com