Improving rental appeal

[JulieW]

Can anyone suggest the major features that renters look for and where the best returns for effort are.

I'm assuming that painting is a number one. How about modernising or renewing things like cisterns, bench tops (Dog Kennel!) etc? Has anyone any relative 'percentage' figures or dollar values? (e.g add lockup garage adds $xx or xx% to rental value), or is that widely variable over suburbs?

 

[Gools]

Julie, this exact topic has been done to death. Have a bit of a search on here. A topic about a month back had a poll to rate the features to upgrade to get the best return on investment.

Anyway, you will need to give some sort of indication as to the type of dwelling you are planning on. House, Town House, Unit.........


Gools

 

[tobe]

Im no expert, but I would suggest it varies from area to area, and type of tenant. I have found it useful to talk to the PM's in the area when I was looking at doing reno's. For one of the areas I invest in, a car port adds no rent whatsover, but a new heater adds $20 a week if you are trying to find a tenant in autumn.

 

[josko]

As mentioned above, it depends on the area, but I have generally found kitchens offer a much greater appeal.

It doesn't have to be Caesarstone with glass splashbacks. Just a kit kitchen will do...as long as it looks new and modern.

I think gardening and landscaping is under rated and adds a great deal of appeal to a renters first impression.

Regards JO

 

[Minxdamanx]

I guess it all depends on price and location doesn't it?

The area that your property is situated and what they prospective tenant could afford.

I see no point having granite benchtops and high end appliances in an area and type of IP that would only attract 250-270/week.

So for me, in the areas that I invest - lowish, blue collar sort of properties - I think an updated bathroom and kitchen, security, lock up garage and a nice, neat easy care garden are important.

But definitely it is a horses for courses thing.

All the best,

 

[marg4000]

There are two different ways of looking at - things that will add value to the property as opposed to things that will improve the tenant's quality of life.

I would think that air-con and a dishwasher would be more appealing to a tenant than a landscaped yard - which would probably mean more work for the tenant.

Your PM is the best person to advise you what tenants in your area feel is important.
Marg

 

[JulieW]

Thanks all for the suggestions. On search I found that a white picket fence might have 'cute' appeal and the suggestions on Kitchen and LUG are helpful. I'm speaking to the PM this afternoon and I'll see what they suggest. Current rent is 300 pw, 3 BR house Seaford, and I'm hoping to push it up to at least 320 for the new lease -(and it needs a front fence lol)

 

[RumpledElf]

Rear fencing is a better idea than front, if you're doing fencing. If you have an open yard, you immediately eliminate anyone with small children. If you don't want tenants with kids, however ...

says me with an unfenced yard and a toddler who is prone to running off ...

 

[travelbug]

I have found that in cheaper places built in robes are a definite plus with renters.

Not everyone has wardrobes. It mightn't necessarily up the rant but if one with wardrobes (at least in the main bedroom) was the same price as one without, the one with robes would win. Tenants may pay a bit extra for them ( or use poles like I did when I first moved out of home).

 

[RightValue]

I think gardening and landscaping is under rated and adds a great deal of appeal to a renters first impression.

Regards JO

So they can watch it turn to an overgrown weed bed???? ..

On the whole tenants do not do gardening .. I would guess that in 5% of tenanted properties I go into,the gardens are maintianed .. hell they rarely bother to pick up the dog poo.

The amount of times landlords have been with me during an inspection, who look forlornly at a weed infested fading vestiage of their $1000's of landscaping and state something like .. "the gardens were very nice when I lived here".... is too numerous for me to count.

As a result I think that spending any real money on gardens in IP's is a complete waste of time, effort and money .. you are better off better off spending the money on a holiday or a case of Grange.

cheers

RightValue

 

[JulieW]

So would that mean that it could be worthwhile for the landlord to engage a gardener to maintain the gardens if one wanted to maintain their value to the property in resale?

 

[RightValue]

So would that mean that it could be worthwhile for the landlord to engage a gardener to maintain the gardens if one wanted to maintain their value to the property in resale?

Depending on the area and the garden .. but on the whole you will probably spend as much on maintaining the garden as it adds to value.

IMHO gardens add to saleability more so than value.

Not all purchasers appreciate a garden enought to pay for it.

I valued on house with a very very impressive Japanese garden .. easliy $50k had gone into it ... it sold for no more (and possibly less) than a house with an undeveloped yard; apparently a fair few purchasers were put off by all the work.

A nice garden is nice but only a gardener will really appreciate it .. people are real busy these days and many want easy care .. that is why units/townhouses sell for almost as much as a similar house on a full site ... they will pay more for less so they have less work to do.

I don't think valuers add all that much for gardens in their valuations, nor that most purchasers or investors are really prepared to pay that much more for a property based on its garden.

If you want to spend money on a garden and gardener .. go for it, after all I could well be wrong here.

Ask yourself this.. when you bought the property, how much of the offer price was based on the garden?

cheers

RightValue

 

[Minxdamanx]

I don't disagree with you RV, but for rentability I find that a neat, easy to maintain garden does appeal to tenants.

My poor daughter though when she rented her first place had nearly a full quarter acre of lawn to mow - corner block so all at the front. It used to take her a full weekend! So that isn't what I mean.

Nothing fancy, bit of lawn and neat, edged garden beds appeal to tenants. In our IP's we pay for the lawn mow once a month ($30.00). When the tenants move out, it takes me (at most) half a day to weed and neaten the garden. We supply lawn food and keep the reticulation maintained.

It may not add any value to the property, or even increase the rent we get, but .... I'm told it does attract tenants as it LOOKS neat and easy to maintain.

 

[devo76]

I am going through this ATM so i run a few house plans past my realestate agent.

First of all bedrooms.
The more you have the more rent you will get.Simple

Double garage.
At a minimum a single with ample storage ( 1.5 maybe)

Location.
Closser to the cbd the more rent.

Yard.
This can go both ways. Some want yard,some dont.Must be low maintenance but.

Finish
Modern clean inside.Executive style finishes are great and most builders have a special to incorperate these into the price but not sure how much more rent you would achieve.It will help rent it but.

This is it for my area. Everything else gives less of an effect. There are variations. Say a 3 bed with larger living areas may rent the same as a 4 bed with smaller living areas etc. You get the idea.

Cheers

 

[JulieW]

Thanks everyone. All makes sense indeed. Can't find the poll mentioned by Jools - can someone link please