Determine who your target market is before you start renovations. You need to ensure your property will still appeal to your market when it comes time to sell or lease. For best results, hire professional contractors to help you with your renovations.
Remember, not all home upgrades will increase your property’s value or return on investment; adding a pool, highly customised designs, or over-the-top luxury is not always a good thing. Upgrades that may seem valuable to you might not be valuable at all for potential buyers. So think about what your tenants would like in the property, and consider adding or restoring those to boost your property’s market value, and drive up the rent.
To help you on your way, here are 12 ways to add value to your investment property without breaking the bank.
1. Modernise the entry
For the outside, consider painting the door, replacing the door handles, installing a security door, providing a door canopy and adding a welcome mat. As for the inside, add hooks on the wall to hang clothes and hats, a shoe rack, a rug by the door, and install good lighting.
2. Create an inviting hallway
If you have a cramped or narrow hallway, placing mirrors on both sides of the wall facing each other can open up the entryway and make it appear bigger. You can also accentuate your hallway with light and warmth by installing chandeliers, pendants or sconces.
3. Paint the walls
Apply a fresh coat of paint to your property’s exterior to make it look spick and span. Painting the interior walls in light or neutral colours can also give your property an instant facelift. It will also make the inside feel more spacious, and allow potential tenants’ décor and taste to fit easily.
4. Makeover your kitchen
You don’t need to install new appliances and worktops, but if you’ve got old, worn benches and basins you should consider replacing them. Otherwise, simply update lighting fixtures, add splashbacks, replace a dated kitchen faucet set, modernise cupboards with new handles and finishes, or paint the walls in light, bright colours.
5. Upgrade your appliances
If your kitchen appliances don’t match each other, get new matching face panels for them. If you have sleek, matching appliances, your kitchen will look more modern and pulled together.
6. Update your bathroom
Getting a new toilet seat or applying a fresh coat of paint can add value to your bathroom. If you have an old bathroom or a dingy shower, re-grout the tiling and do a thorough clean. You can also replace or paint old, worn benches and basins, add new door and cabinet handles, as well as upgrade the bathtub and taps.
7. Spruce up your flooring
Contemporary and clean floors will add value to your investment property, so rip out your frayed carpets and replace them with hardwood floors for a classic upgrade.
8. Install new door handles, curtains and light fittings
Door handles can get broken, damaged or worn out after a long time of constant usage, so consider installing new ones for every door in the property. Dated curtains and light fittings can detract from the look of the place, so install new ones to help brighten up the rooms.
9. Add some niceties
Adding a few niceties can help increase your property’s value. These include a washing machine, dishwasher, small air conditioning unit, Wi-Fi, and small furnishings like bathroom storage solutions or kitchen settings.
10. Turn your garage into a living space
If you don’t often utilise your garage or it’s just extra space for storage, try turning it into a usable living space such as a guest room, playroom, or home office.
11. Accentuate the outdoors
Your outdoor areas are what potential tenants and buyers will first see, so consider mowing the lawn, planting flowers, or building a deck for a more stylish yard. A neat and tidy outdoor area will surely boost your property’s value.
12. Secure your property
Add value as well as protect your tenants with a fence surrounding the property, a lockable garage, security screens, deadlocks on the main doors, and a security system. Providing a carport to shelter your tenants’ vehicles will also show you care about their wellbeing and safety.
Overall, sprucing up your investment property can improve its value as well as your potential rental yield. But think carefully before you make upgrades – you don’t want to invest your hard-earned money in renovations that will not add value to your property.
By investing just a few thousand dollars into upgrades, you can transform and dramatically increase the value of your investment property.