When you are searching for a below market value deal in the property market, there are typically two choices to pick from. You can either invest in distressed properties that need work or you can buy cheaply through time-motivated sellers.
Of the two, time motivated sellers are usually the best option for property investors. With the right technique, you can more influence how much you pay for the property and save an impressive 30% in the asking price.
In both cases, you can make a potential profit that can go straight back into your property investment. To maximize your rental income there are a few things you should to before you put rented property back onto the market. Give your property a make-over to entice new tenants.
The extent of this job will depend on the condition of your property. Most just need a thorough clean and new lick of paint, but some need more.
Your top ten areas to clean, repair or replace.
Before you get carried away and rip everything out, just stop and listen for a moment. There are cheaper alternatives to improving your property that won’t cost you a fortune. By following this simple plan, you can save yourself money and transform your property into a rental property haven.
First try cleaning. If this does not work, try repairing* the problem item and if that still does not work, then replace it through a reputable company. It is that simple.
Now you have got you plan in place, the question now is: where do you start first?
1. Exterior doors- if needed replace or simply repaint with a latex semi-gloss enamel paint and finish with a waterproof coating.
2. Windows- check the frames, glass and locks. By investing in locks your tenants will feel safe in your property and will value you as a landlord.
3. Interior doors – similar to exterior doors use a latex semi-gloss enamel paint. Keep your colour choices neutral, either by keeping its natural wood appearance (if it has not been previously painted) or using white and antique colours.
4. Kitchen cabinets – this does not necessarily mean you need a new kitchen. But to make your property investment work, thoroughly clean down the kitchen, repair cupboards and repaint the walls. One cheap tip is to use adhesive tile stickers to cover up ancient tile designs.
5. Interior lighting- a simple job, but saves work later from your tenants.
6. Plumbing fixtures – to reach your full property rental potential all your fixtures need to work, so you can effectively sell the property to your future tenants with ease.
We do recommend that if you do not have the time or knowledge to make these repairs, hire a professional. It may cost you money initially but the long term savings are worth it. Make sure you check your sinks, tub, shower and faucets
7. Heating and Cooling system
8. Floor Coverings – if you have chosen to invest in a rundown property, sprucing up the flooring can give your property a homely appearance. Your tenants will appreciate this extra comfort feature.
9. Interior paint – keep your colours neutral. This increases the appeal of the property and allows your tenant to view the property with a clear mind. It’s surprising how often bright colours can influence a tenant’s decision to not bid.
10. Roofs, gutters and pathways – you need your property to be safe, so if you spot a possible future problem, curb it now and make a huge saving.
*if this is not your area of expertise, invest in a professional. It will save you the cost of correcting mistakes later.
The most important point of all is not to get carried away when fixing up your property. Yes, it is important to create the right impression on your future tenants, but you must be careful to not over spend with unnecessary features.
With the right finishing touches, you can aim for the upper quartile of your rental income and make your property investment a tenant’s dream. What’s more you can do it without cutting too much into your 30% profit.
So take the time to assess what jobs really need doing, and make a saving on your budget.