Ideas to boost rental yield on this property

[jerrybee]

Thought I'd reach out to the brains trust on this:

http://bit.ly/1QNWqCt

It's a small block - 405sqm, so a granny flat won't be possible.

What I'm thinking is I could remove the walls from downstairs (currently a thin veneer of asbestos), put up proper walls, a door and make a bedroom out of it.


It wouldn't be a legal bedroom (due to height) so I'd still have to advertise it out as a 2 bedder. Or I might be able to call it 3, I don't know.

I would then install a carport or sun sail for parking.

I imagine this might cost...20k? My dad is a builder so it'll be much cheaper. If I can boost rental income by say $30pw, it seems like it might be worth it.

What do you guys think?

 

[sumterrence]

how much is the house renting now?

 

[jerrybee]

I don't even have it yet, settles next week.

I did some research and during the peak times (Jan / July) it should fetch about $350-360pw.

Now that the market is slow I would think about $310-330pw.

 

[pinkboy]

It wouldn't be a legal bedroom (due to height) so I'd still have to advertise it out as a 2 bedder. Or I might be able to call it 3, I don't know.

Are backyard/basement gambling establishments able to call themselves a 'Casino'?

There lies your answer.


pinkboy

 

[jerrybee]

Yeah I thought so, I'd plan on calling it a 2 bedder and let the photos sell themselves.

 

[Rixter]

Installing Air conditioning is a common method to increase cash flow.

 

[jodes92]

Pet friendliness can also increase cash flow- as a pet owner I can attest to this !

 

[jerrybee]

Installing Air conditioning is a common method to increase cash flow.

Good tip! You're right maybe this is all I need to do...

 

[S.T]

Have a look at your competition and make sure you have what they have, so you can compete.

If you want your rent higher, you might need to reno kitchen/bathrooms to be at the same standards of other properties.

But you really need to do your research and find out about your competitors.

 

[jerrybee]

Where do you think I should put the AC? I figure 1 x in the living / kitchen, and a fan in each bedroom.

 

[Rixter]

But you really need to do your research and find out about your competitors.

Simtr is correct...you need to do your DD in relation to comparative market rates otherwise you may price yourself too high & out of the market.

 

[DaveM]

Installing Air conditioning is a common method to increase cash flow.

Good for increasing air flow as well.

The paint looks pretty worn, I would give it a tart up with a more modern neutral/grey and new blinds. Probably a new cooker as well as its ancient.

I would also remove the monster row of built ins as they cut the room in half. Hard to tell without a floor plan but I would then install BIR's on the wall adjacent to the door

 

[jerrybee]

Good for increasing air flow as well.

The paint looks pretty worn, I would give it a tart up with a more modern neutral/grey and new blinds. Probably a new cooker as well as its ancient.

I would also remove the monster row of built ins as they cut the room in half. Hard to tell without a floor plan but I would then install BIR's on the wall adjacent to the door

All good tips, didn't even think about the cooker. It's in superb condition so I wasn't going to touch it, but visually it's old as hell so I may replace it on this basis alone.

As for the BIR's, yeah that was my plan too. They are sooo ugly.

 

[jerrybee]

Simtr is correct...you need to do your DD in relation to comparative market rates otherwise you may price yourself too high & out of the market.

Yup I have. 3 bedroom townhouses in the area go for about $380-$400pw give or take (minus about $30 during the slow periods, regardless of size or condition).

But they are 3 bedders, 2 baths, in very good (newish) condition with all the facilities that come with being in a complex. There's almost no 2 bedders in the area. At any given time there may be one or two for rent, but 2 bedroom houses and townhouses are just not that common. So it's not an easy comparison.

So I think $350-360pw would be fair. That's a $20-30 discount for one less bedroom, which might not seem like much, but I remember when I was just starting out, even $10 made a huge difference. Therefore $20-30 is a lot for people who want something cheaper but at the same time want privacy and don't want to share with a room mate.

 

[willair]

Thought I'd reach out to the brains trust on this:

http://bit.ly/1QNWqCt

It's a small block - 405sqm, so a granny flat won't be possible.

What I'm thinking is I could remove the walls from downstairs (currently a thin veneer of asbestos), put up proper walls, a door and make a bedroom out of it.


It wouldn't be a legal bedroom (due to height) so I'd still have to advertise it out as a 2 bedder. Or I might be able to call it 3, I don't know.

I would then install a carport or sun sail for parking.

I imagine this might cost...20k? My dad is a builder so it'll be much cheaper. If I can boost rental income by say $30pw, it seems like it might be worth it.

What do you guys think?

I always look at the downside then work upwards,if you intend to rent to different people in different rooms,ring up the insurance company you intend to use first and see if not being up too council legal standards if the #### hit the high speed fan,that you are covered first before spending one cent..

 

[jerrybee]

No the plan isn't to do that. Only a single family or couple.

 

[Encarta]

I would build under, can be done cheaply and the returns are worth it,. Speak with a pm about this before hand, don't worry about legal height and all if that, also paint and carpet all around and Ac as mentioned
Carport as well if you build under, qlders are funny about that I have experienced

 

[Encarta]

I always look at the downside then work upwards,if you intend to rent to different people in different rooms,ring up the insurance company you intend to use first and see if not being up too council legal standards if the #### hit the high speed fan,that you are covered first before spending one cent..

You don't need to do this, advertise smartly for a premium and get in one big family and let them figure it out which they will