When buying an investment property, the most important factor to the majority of people is capital growth – making money in the long term.
However, not many people would turn their back on also having a good rental return. Why shouldn’t you have it all?
When you buy the right property in the right location you’re half way there – no matter what the interior, for the right rent someone will want to sign that lease. But a rundown place is unlikely to attract houseproud tenants, which, as well as costing you financially, is likely to create ongoing and unnecessary headaches.
Supply and demand is the back bone of most businesses so here’s how to make sure your property is in demand:
Bathrooms and kitchens don’t only sell well, they rent well too!
When your tenant comes home after a hard days work the last thing they’ll want to deal with is a dark and dingy bathroom with old fittings. However, most people appreciate how good it is to relax in a bright and appealing bathroom.
Even if you eat takeaway four nights a week, a kitchen is the heart of a home and little will inspire your tenant to feel houseproud better than a new and gleaming kitchen
Paint & Carpet (or other floor coverings)
Freshly patched and painted walls, gleaming wooden floors, new carpet and attractive tiles all create that important first impression.
Neutral Colour Schemes
You may have a penchant for bright colours and patterns but a neutral colour pallet will appeal to a broader range of people, increasing your chance of quickly securing a good tenant.
Again keep them simple and neutral – blinds are a good option.
Storage, storage and more storage! Don’t underestimate how in demand built-in-wardrobes and cupboards are. The more you build them, the more they will come!
A Good Property Manager
Once your renovations are complete make sure you employ a good Property Manager. Do your research when choosing one and ask for recommendations, preferably from people you trust. Amongst a myriad of other responsibilities a good Property Manager should:
• Find you a good tenant who is fully reference checked
• Get you the highest rent possible and ensure that it is paid on time
• Do periodical inspections and give comprehensive feedback
• Take the initiative when small repairs are needed
• Advise when larger repairs are needed
In short a well maintained property, with a pleasing decor, will improve your yield and attract a better calibre of tenant taking you closer to the passive investment is should be. If you’d like some advice on how to improve your property investment, feel free to get in touch with us at Empire.