Hello,
Say you have an unrenovated 2 or 3 brm unit & you wish to increase the rent by renovating? What are the areas where you can get the best return on your dollar?
1) Install air-conditioning (Split-system) - Add how much extra per week?
2) Install new carpets in 3 brms - Add how much extra per week?
3) Renovate kitchen (ie. add new cupboard doors, door handles, & benchtops) - Add how much extra per week?
4) Renovate bathroom (ie: new tapware, vanity) - Add how much extra per week?
What are the things that tenants want & would pay extra for? It's summer now in Cairns, so a/c is worth doing.
The rent at the moment on my 3 brm unit in Whitfield, Cairns is $245pw - I think the most I could charge would be $285pw - is it worth spending $7-$10,000 doing the above & a few other things just to increase the rent by $30-$40pw.
What do you expect as a reasonable return on your money; ie. If I spent $5,000 I would expect to have that $5,000 returned to me through rent increases of $500per year over 10 years?
Sure renovating a property is going to increase the value of the property & ability to draw on that equity, however I am wondering whether renovating a property is worth the effort in the end if the extra rent isn't there? Yes, the property will probably rent quicker because it'll be like a brand new unit.
Comments appreciated. Thank you!
Say you have an unrenovated 2 or 3 brm unit & you wish to increase the rent by renovating? What are the areas where you can get the best return on your dollar?
1) Install air-conditioning (Split-system) - Add how much extra per week?
2) Install new carpets in 3 brms - Add how much extra per week?
3) Renovate kitchen (ie. add new cupboard doors, door handles, & benchtops) - Add how much extra per week?
4) Renovate bathroom (ie: new tapware, vanity) - Add how much extra per week?
What are the things that tenants want & would pay extra for? It's summer now in Cairns, so a/c is worth doing.
The rent at the moment on my 3 brm unit in Whitfield, Cairns is $245pw - I think the most I could charge would be $285pw - is it worth spending $7-$10,000 doing the above & a few other things just to increase the rent by $30-$40pw.
What do you expect as a reasonable return on your money; ie. If I spent $5,000 I would expect to have that $5,000 returned to me through rent increases of $500per year over 10 years?
Sure renovating a property is going to increase the value of the property & ability to draw on that equity, however I am wondering whether renovating a property is worth the effort in the end if the extra rent isn't there? Yes, the property will probably rent quicker because it'll be like a brand new unit.
Comments appreciated. Thank you!
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