When the market fluctuates, rental rates may increase and decrease accordingly. As an investor, you’d want to increase the returns of your investment. However, simply charging higher rent for a property unit that doesn’t have much substantial value would dissuade potential tenants. Being creative and innovative is one of the skills investors need, just make sure you can control these ideas and follow through with your action plan considering both cost and significance.
You can add and separate spaces of your investment property to increase its value and command higher rental income. But always consider the cost of starting property renovations and what sort of significance your renovations can bring to your property. Whether you’re adding living, bathroom or outdoor space, it’s a matter of maximising and utilising the area of your property.
What are Strategies to Raise the Rent on Your Investment Property?
There are a lot of options to upgrade your investment property, be it through purchasing smart appliances, dividing open spaces or adding enclosures. You don’t necessarily need to upscale your property especially when it is relatively located in a high demand market area because you might end up overcapitalising it. Rental properties are ideal for extensive renovations because the rental yield can eventually payoff the investment made into it for the long run.
You have to play with space when renovations are made, the scope of works will also depend on the size of your investment property. Smaller properties like a unit or a townhouse can accommodate single occupants, couples or new families. Most times you can’t add room divisions, but you can still construct modular cabinetry to maximise the space for storage and the like. Bigger properties can always accommodate bigger families or friend groups. Additional rooms are advantageous especially for new or growing families. Spaces that can be multifunctional depending on the character of your tenants will also be a good bonus. As an investor, you have to adapt to your potential tenants taste and their demand.
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What are some spaces to consider renovating to raise the value of the investment property? What else can you do to uplift the space?
1. Bathroom
Extra bedrooms, creating entertainment rooms or expanding dining areas are simple living space options to add in a house. But having more than one bathroom in big property houses can be very crucial. Let’s imagine this scenario that a couple lives in a house with their three kids and this house only has one bathroom. It would take much longer time for all three kids and the parents to prepare themselves in the bathroom because they have to wait for the person to finish their business. Having at least two bathrooms can shorten the amount of time to accommodate the family.
- Replace the old fixtures
- Add a vanity area
- Improve lighting design
- Install new tiles
2. Kitchen
Special care is needed when using the kitchen since the cooking appliances and sharp objects are located here. Having an upgraded kitchen can improve the end-user efficiency which can attract tenants. There are a lot of energy-efficient appliances that consumes less electricity which can save up on utility bills, adding these appliances to your kitchen may prove to be helpful in increasing the rental rate.
- Upgrade appliances
- Ergonomic workspaces
- Cleanable surfaces
- Ample pantry storage
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3. Utility Room
Utility room in a house provides a separate space for the washing machine, dryer, water heater and heating, ventilation and air conditioning (HVAC) systems. It can easily be accessed, keep things organised and enhance convenience because it’s for utility-related activities, thus freeing up other areas of the house. You might also want to install a good air conditioning system since that can bring up the property value.
- Install shelving and cabinets
- Add utility workspaces
- Provide proper lighting and ventilation
- Consider security measures: hazardous materials, access to some appliances and tools
What Else Can be Done for the Interior Design and Spaces of the Investment Property?
These are some ways to give your investment property a fresh look.
1. Flooring
You must replace worn-out flooring and even outdated ones. There are a lot of flooring options that are durable and attractive like hardwood, laminate or high-quality vinyl flooring. It may good to also consider lighter shade of flooring for common areas and use a darker shade of flooring for bedrooms.
2. Wall paint
When doing a fresh new coat of paint, choose neutral colours that appeal to a wide range of tenants and make the space feel clean and inviting. Some even consider using borders to create a little bit of character to the space, but that would entirely depend on the trends of the market and taste of the tenants.
3. Wall divisions
Especially when the living and dining area is in an open room, having wall divisions can make things interesting. It can be a style in itself and make your potential tenants remember that specific wall division feature.
4. Storage solutions
Maximising space by providing closets, built-in shelving, or organizational systems can make the property more functional and appealing.
5. Lighting
Decent lighting inside the house can easily make the property more desirable. Good lighting makes a difference in enhancing the ambiance and functionality of each room. If you can use the windows for its natural source of lighting, the better. People would love to come home to a bright house rather than a dark and spooky house.
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6. Window treatment
Replace old or worn-out window treatments with new blinds, curtains, or shades. This can give the property a more polished and put-together look while providing privacy and light control.
7. Smart home features
If you want to go above and beyond, you can add other smart home technology like a smart thermostat for your HVAC or possibly security cameras outside and inside the investment property. Giving more control and adding security for your tenants can incredibly increase the demand for your property.
8. Curb appeal
This would obviously deal with the exterior of the property. You can have the exterior walls and the front door repainted. The landscape of the front yard must be maintained and it has to be easily taken care of even by your tenants.
What are Some Tips When Adding or Dividing Interior Spaces of Properties?
1. Property Layout and Flow
When renovating your investment property, consider the overall layout and flow of the property. By adding or dividing spaces in a way that complements the existing layout, you can create visually pleasing and well-proportioned areas.
This ensures that the new or modified areas seamlessly integrate with the existing layout and it also avoids creating awkward or impractical spaces.
2. Placement of switches and sockets on walls
Switches and sockets are positioned in specific locations to provide convenient access to electrical power. By considering their placement, you can ensure that they remain easily accessible and functional after a wall is added or removed. This includes ensuring that switches are in convenient locations for controlling lights and that sockets are positioned for powering devices and appliances. If switches or sockets are located on the wall that will be demolished or inaccessible from another room, relocating them can be time-consuming and costly.
3. Running plumbing pipes
You can’t simply remove a wall when it has running plumbing pipes inside. They typically run through walls to supply water to various fixtures in a house, such as sinks, showers, toilets, and appliances. By considering the location of these pipes especially when you want to remove a wall, you can avoid accidentally damaging or disrupting them during the demolition process. By planning ahead, you can make appropriate arrangements for rerouting or adjusting the pipes to maintain the functionality of the plumbing system either through another wall or under the floor.
Remember to research the local property market before undertaking renovations to determine what features are in demand and likely to deliver a good return on investment. Consider engaging with a professional, such as a contractor or a real estate agent who can provide advice and expertise throughout the renovation process.
