Top tips for renovating investment properties

Top tips for renovating investment properties

So far 2016 has presented great opportunities for investors to build their portfolio and capitalise on investments.

As we all know, interest rates are at historical lows and the past year has seen property prices steadily increasing across markets – particularly Sydney and Melbourne.

If you have the means to get into the market as an investor here’s what you need to know about renovating or updating an investment property.

1. REMEMBER – INVESTMENT PROPERTY, NOT FUTURE HOME 

If this is not a property which you will live in, it doesn’t need to meet your personal particularities and preferences. In fact, the optimal strategy for selecting an investment property is to secure one which will be in continuous demand by tenants, as well as future home buyers. The property should be appropriate for the demographic in the area. Do your research to discover the demographics of your area of choice, and ensure that the property you are looking at caters suitably to these potential tenants.

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Image: Vault Interiors Property Styling

2. ADD VALUE FOR THE DEMOGRAPHIC

Once you have your hands on the perfect place and you know who your target market is, you could add value by making cosmetic changes that will make this property more inticing to tenants and future buyers. For example, in the CBD you may choose to fully furnish a property that caters to executive tenants. Or if the demographic is a young family you might choose to enclose the yard or improve the garden. For young executives, you might modernise the place with a budget kitchen or bathroom that will also add value when you choose to sell the place.

3. QUICK FIXES THAT ADD BIG BUCKS

Easy cosmetic fixes such as painting, carpets, storage and blinds will add visual appeal and value in a potential tenant’s eyes. If there’s a lack of storage or these items need some TLC, they should be your first port of call. If you have the space, add built-in robes in the bedrooms (IKEA have some great affordable options) and if the room is on the tighter side, mirrored doors will work well to make the room feel bigger.

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Image: Vault Interiors Property Styling

3. STICK TO NEUTRALS 

A common mistake we see investors make too often is updating a property to suit their own personal tastes. Keep the colour palate completely neutral. White paint is the way to go to add maximum light in the property and give a fresh look. Flooring should follow the same rule of thumb – go for a dark carpet or floating floors for low maintenance.

If the property is in reasonable nick already, you may be better off waiting until you are ready to resell the place before updating painting and flooring. Most tenants, unfortunately, won’t take care of your property as they would if it was their own home. For this reason, you may be best to hold off on new carpet and paint until the tenants vacate the property and before you sell the place. That said, a freshly updated property will most likely attract a higher quality tenant or a higher rental price. Consult your real estate agent to get advice on this before you proceed.

4. HELP YOUR TENANT, HELP YOU

Plenty of storage facilities could help to ensure that the property remains well kept. Tenants want to feel at home, not cramped and uncomfortable, so they’ll place greater value in a home with open spaces that are low maintenance. Properties that can be easily and cheaply maintained are more likely to enjoy high tenant demand as renters will see the property’s upkeep won’t monopolise a lot of their time. For study areas (which is big added value in the eyes of potential tenants), think inbuilt bookshelves, a floating desk system, making sure that there are ample power, data points and task lighting.

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Image: Vault Interiors Property Styling

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Do you have any important tips when selecting an investment property? Share with us, we would love to hear from you!

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Vault Interiors Property Styling is in the business of creating higher value spaces in Sydney through vibrant and edgy design. We specialize in unlocking the potential in your property and helping you increase its value through presentation, functionality, and appeal.

Contact us today to get an obligation free quote from a property stylist.

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