Cost effective tips to increase rental returns

Paint pot sitting on ladder

There are several ways you can increase your rental return - from looking at your finances, to minor improvements and large-scale renovations. Here are some cost effective tips to help make your rental property more appealing to tenants.

General maintenance

The upkeep and on-going maintenance of your investment is the key to acquiring and retaining good tenants and can also help achieve increased rental returns.

Money matters

When it comes to property investment, it is recommended you review your finances from time to time. Refinancing, at a better mortgage rate could help achieve a higher return. You may also want to contact your accountant or tax specialist to see if you qualify for any or further tax benefits.

Interior improvements

  • Kitchen - replacing, covering or painting high usage areas such as cupboard doors, door knobs, tap fittings and benchtops can be a quick and inexpensive way to freshen the overall appearance
  • Bathroom - add bathroom fans or heating lights to minimise build-up of mould, replace any chipped tiles and missing grouting. Repaint painted areas, if necessary, using a mould resistant paint
  • Replace or clean blinds and curtains 
  • Paint interior walls where required 
  • Add a dishwasher.

Outside improvements

  • Ensure the garden is as low maintenance as possible 
  • Add a carport, a parking space or shade-sail cover area 
  • New front door - a new front door can be an inexpensive way to create a good first impression. Keep your eyes peeled for a second hand bargain
  • Replace door knobs 
  • New mailbox or separate letter boxes for each separate dwelling, if in a block 
  • Add security or sensor lights 
  • Add security screens on doors and windows 
  • Provide a clothesline, either hard standing or retractable
  • Add storage.

Make it family friendly

Families looking to rent generally have more specific needs than other tenants, such as a bathtub as well as a shower, and fenced areas for children to play.

Make the property pet-friendly

To attract pet-owners you could add fencing or make sure your current fencing is pet-proof. You could also add a cat or dog door.

Large scale renovations

When you're renovating, it's important to make sure you don't overcapitalise. However, if your property is due for a hearty revamp, here are some suggestions to consider:

  • Paint the whole of the exterior 
  • Provide new carpets or flooring 
  • Renovate the kitchen and bathroom 
  • Create an extra bathroom/bedroom 
  • Add an outdoor entertaining area or provide extra storage.

Find out more about return on investment and summer maintenance tips.

Remember, it’s always important to consider other factors including expenses, interest rates and periods of vacancy. For more information contact a property manager.

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