As an investment property owner, making strategic upgrades to your rental property pays dividends when looking to boost future sale valuation.
Whether you are seeking a profitable flip or simply maximising your long-term rental returns, there are some renovations and feature additions that can make income properties significantly more profitable in Australia.
Here are 8 of the Top Tactical Upgrades for enriching your rental property’s worth over time:
Preventative Maintenance
Just as consistent oil changes keep vehicles humming for hundreds of thousands of miles, proactively monitoring and addressing minor rental home issues early prevents exponential expensive damages long-term.
Conduct thorough property walkthroughs inside and out whenever units turn over.
Replace worn parts before catastrophic system failures happen.
You can hire end-of-lease cleaners from agencies like Absolute Domestics whenever tenants move out to ensure that everything is properly deep cleaned before neglected areas turn into bigger and more expensive issues.
A little precautionary attention ensures well-running properties are worth top dollar for minimal continued upkeep costs.
Kitchen and Bathroom Modernisation
Few remodels offer higher ROI payoffs than renovating kitchens and bathrooms in rental units.
Outdated appliances, leaky plumbing, and aged finishes negatively impact tenant satisfaction and make spaces feel tired.
Replace appliances, hardware, and surfaces with fresh contemporary finishes.
Swap dated cabinetry for open-concept shelving displaying decorative cookware.
Opt for environmentally friendly appliance models.
Modern kitchens and baths suggest overall updated interiors.
Curb Appeal Improvements
The home’s exterior directly influences perceived desirability from the initial approach.
Little aesthetic improvements make big positive first impressions on possible tenants in the initial inspection.
A vivid front door or geometric walkway tile can instantly boost curb appeal without breaking budgets.
Maintain exterior surfaces well so fencing and outdoor structural elements make welcoming impressions rather than seeming neglected.
Simple foundation plantings and flowering pots also increase the property’s aesthetic from the street.
Every initial attraction brings more prospects through the front door, resulting in a more profitable investment for your bank account.
Creative Storage and Organisation
Even multi-bedroom floorplans quickly accumulate tenant clutter without enough space to store belongings conveniently.
Maximise every inch inside rental units by incorporating customised storage solutions such as mounted bike racks in garages, pull-out base cabinets in kitchens, under-stair cubbies, and rolling under-bed bins.
You can highlight storage perks when advertising vacancy listings to renters.
Remember, orderly interiors suggest responsible past tenants and attentive property owners.
Upgraded Flooring Materials
While dated carpeting looks visibly dingy quickly under high foot traffic, new waterproof vinyl plank flooring or composite floors can withstand steady activity over time – especially in high-traffic common areas like hallways and kitchens.
Make sure that updated floors meet safety requirements and provide sufficient traction too.
Easy to mop and sweep floors also appeal greatly to tenants with pets looking for durable, pet-friendly surfaces, check out this guide on the best flooring for dogs.
Plus, Brand new flooring makes spaces seem cleaner overall.
Consider installing colourful patterned decorative area rugs over basic floors too for pops of fun while hiding imperfect flooring areas.
Outdoor Living Improvements
For properties with small yards, improving the usability of outdoor areas adds value exponentially.
Construct an attractive deck or patio perfect for grilling, alfresco dining, and lounging outside.
Connect spaces seamlessly to interior floorplans using large sliding doors.
Incorporate stylish fencing, planter boxes, or pergolas supporting vines – the possibilities are endless.
Ensure adequate lighting too.
Tenants with green thumbs gravitate toward properties where they can garden.
Upgrading drab yards into functional outdoor areas certainly sweetens rental deals.
Eco-Conscious Sustainability Upgrades
Eco-oriented updates like low-flow toilets, solar panels, drought-resistant landscaping, heat pump systems, and rainwater collection tanks promote sustainability while benefiting rental owners long-term by reducing environmental impact and lowering utility costs.
Even installing simple laundry drying racks saves energy over machine drying.
Every efficiency upgrade helps future-proof properties against rising energy expenses.
With these types of added features, you can also appeal to environmentally conscious Gen Z and millennial renters.
Final Thoughts
Approaching rental property ownership by coupling renovations with functional additions and maximising space and convenience, investors witness substantial appreciating valuation over their ownership time.
The more deliberately you cater to tenant wish lists today, the faster your asset accumulates value for substantial future sale returns tomorrow.
See our general investment property tips for more on how you can increase the profitability of your rental investment.
