10 Jun 13
Investors in residential real estate sometimes walk a thin line between maximising the return on their investment and maintaining their property in a manner that will continue to attract good quality tenants. We have all heard and seen the media stories about horror rental properties where desperate tenants live in appalling conditions usually only seen in third world countries.
The other side of the equation is the investor who over-capitalises on a rental by spending thousands on high-end renovations for a property that will never rent at the top of the market. Everything has a ceiling price and just because a property has been extensively renovated, does not mean that the rental returns will skyrocket.
Shabby Kitchens are a Turn-off for Quality Tenants
So what should an investor do to keep the property in good enough condition so that careful tenants who pay their rent on time will continue to occupy it? Advice from experienced real estate agents who manage all types of rental properties suggests that before doing a complete renovation of the entire property, the owner should first turn their attention to the kitchen.
The rental property managers at All Residential Real Estate believe this too, and recommend to their owners that when a rental property starts to experience long vacancy periods, the kitchen needs some basic improvements. They are not suggesting spending hundreds of thousands on dream kitchens, but with a little thought, there is much the owners can organise themselves.
Quick and Inexpensive Kitchen Makeover
If the cabinetry is still in reasonable condition, there is paint now available that will cover laminated surfaces and have them looking like new. Toss out the old-fashioned cupboard handles and replace them with new ones and with just those two initiatives, the cabinets will look like new. Organise for the old bench tops, splash backs and taps to be removed and replaced with new ones. Already, it does not look like the same kitchen.
Painting makes an immediate difference, so paint the walls and ceilings in modern colours and add a fashionable window covering.
This is all that the property managers at All Residential Real Estate recommend for a property in the low to middle segment of the market. With a new-looking kitchen, the investor can ask an increased rent and start thinking about upgrading the bathroom. For further information on rentals and property management, go to www.realestatewollongongnsw.com.au.