Even if you are a seasoned property investor, but especially if you are relatively new to property investment, our advice is to “get advice”.
There’s much to consider:
Is it a good investment for me? Do the numbers work?
Do I know all I need to know about the property from a legal perspective?
What sort of rental return can I expect?
What improvements can I make to increase the value of the investment?
What type of features appeal to tenants; what are they looking for?
Here are a few tips that might help your decision making.
The number of bedrooms is generally the first factor in determining how much a property will rent for. The bedrooms, the greater the rental income potential. Bedroom size is also important – they should all be big enough to accommodate a double or queen-sized bed.
The number of living rooms should be in proportion to the number of bedrooms. Usually, if there are four or more bedrooms, there should be more than one living area. Living areas are areas used for general living, ie – a space that can fit a couch, coffee table and TV. They also need to be far enough apart so that noise isn’t an issue. For instance, a house that has a combined lounge/dining upstairs and a rumpus room downstairs is considered to have two living areas.
Kitchens and Bathrooms
New or renovated kitchens and bathrooms are more appealing to tenants and “sell” rental properties. They also help maximise the sales price of properties when sold. Like bedrooms, the number of bathrooms can also influence the rental return.
Outdoor Living Area
Properties with an outdoor living area are easier to rent than those without any outside options. Ideally, there should be enough space for a barbecue and seating for 4 to 8 people. Yet anything is usually better than nothing.
Grounds should be low-maintenance and well maintained in the front and back. Consider the cost of lawn and garden maintenance and who you think should be responsible – you or your tenants.
Properties that need repairs and maintenance aren’t appealing to tenants. Property presentation is also a very important consideration. As the property owner, home maintenance inside and outside is your responsibility, not your tenants. It makes economic sense to ensure your property is presented in the best possible way.
At Quinovic Property Management over the past 30 years we’ve learned a lot about rental properties. We’ve helped residential property investors maximise the potential of their rental assets.
Are you looking for independent, honest advice based on experience and knowledge?
Get in touch with Quinovic Property Management Parnell by clicking on the link below: