You do not have to demolish walls and put in marble benchtops to lure great tenants. All you have to do is know what levers to pull.
This is a glimpse of the renovations that not only spin the needle on the rental return, but do so without emptying your bank account.
Rental Kitchen Renovations: Fresh, Not Fancy
It is said that kitchens sell houses, and they rent them too. The first thing that puts potential tenants off is a greasy and exhausted kitchen.
Nevertheless, you do not have to spend 30,000 dollars to receive a payoff. In the case of a rental, consider a cosmetic refresh instead of a full scaled renovation.
- Retain the boxes: In case the internal cabinet boxes are in good condition, then retain them.
- Change the front: It is possible to make a huge change simply by changing the doors and handles.
- Crown it: A stone benchtop overlay or a high-grade laminate will instantly modernise the space.
In the case of upgrades, keep it simple. Tenants don’t need the houses to be as fancy as you might think. You do not want to go too far with kitchen design layouts that look fancy but make the cooking process a nightmare.
Open spaces, clean lines, dishwashers, and durable surfaces will always prevail. If you can provide an island bench or a breakfast bar, then do it. It provides more dining area without the necessity to rent a larger room, which is a tremendous advantage of living in an apartment.
Bathroom Resurfacing: Paint, Don’t Replace
The second room that is most important to yield is the bathroom. Unfortunately, they are the costliest rooms to renovate.
The entire bathroom renovation is accompanied by waterproofing, plumbing, and tiling. That takes weeks and costs a fortune.
A peach-coloured nightmare of the 1980s can be turned into a sparkling white space by professional tile and tub resurfacing at a fraction of the price.
- Refurbish the vanity: Replace the old sink with a new, wall-mounted one. It makes the room feel bigger.
- Repair the fittings: Change the taps, showerheads, and towel rails to similar modern black or chrome.
These are little gestures, but they will indicate to a tenant that the property is well maintained. That justifies a higher rent price per week.
Best Flooring for Rental Properties: Durability is Key
Carpet is a rental killer in high-traffic places. It gets dirty, smelly, and requires replacement every few years.
Rip up the carpet in the living quarters if you want to gain yield and cut down on maintenance headaches. Substitute it with timber or vinyl-hybrid.
- Indestructible: These are tough and waterproof materials.
- Pets allowed: They allow pets into your premises.
Pet-friendly buildings are usually priced higher since they are difficult to locate. You can charge that premium by installing hardwood flooring and not worrying about a dog ruining your investment.
Climate Control: Air Conditioning and Comfort
This is a fact that is usually ignored, and in Australia, comfort is money.
A property without air conditioning in a hot summer is difficult to occupy. The same can be said of a house that has no heating during a winter in Melbourne.
One of the highest ROI upgrades that you can implement is to install a reverse-cycle split system in the living room and main bedroom. This is filtered on property apps by tenants specifically. Unless you have it, you may not even appear on their screen.
Another low-cost win is ceiling fans in bedrooms. They are inexpensive and easy to set up yet provide a physical comfort element, which tenants enjoy.
Kerb Appeal: Improving First Impressions
You are not able to rent a house when nobody wants to enter through the front door. We tend to concentrate so much on the interior that we do not remember the exterior.
You do not need a landscaped masterpiece. It must be neat and low-maintenance.
- Garden: Add new mulch to the garden beds.
- Driveway: Have it pressure cleaned.
- Entry: Paint the front door.
When the fence is leaning or the gate squeaks, repair it. These minor flaws shout negligence. They put a low price expectation in the mind of the tenant even before they have stepped inside.
Renovation Financing and SMSF Rules
Lastly, a brief comment on the way you pay for these upgrades. This is very important when you are investing in more complex structures.
A good number of Australians are investing their superannuation in purchasing property. But this is accompanied by a very particular rule book on renovations.
You must be very cautious in case you have bought your investment using residential SMSF loans.
In most cases, the money borrowed through such arrangements cannot be spent on enhancing the asset—only to repair it. For example, the loan money can be used to repair a broken window but with the same borrowed money, you usually cannot upgrade a functional laminate kitchen to a stone one.
The majority of the changes in this case should not be financed by the loan but rather by the cash that is already available in the super fund. Never swing the hammer on a super-owned property before you consult your accountant.
Summary of High-Yield Renovations
Raising the rental yield is not about making emotional decisions. It is regarding tactical, long-term enhancements.
- Re-use, not re-build: Resurface tiles and cabinets instead of replacing them.
- Flooring: Use hybrid floors instead of carpet.
- Comfort: Add air conditioning to be featured in more searches.
- First impressions: Clean the yard and paint the front door.
- Know the regulations: Before you begin, understand your financing limitations.
It is possible to maximize your rental income without overcapitalising by concentrating on these targeted changes. This makes your investment work even harder.
