How to raise the rent by 10%
Monday 24 April 2017
Wondering how to boost your rental returns? Here is our list of key do-ups that will raise your rent by 10% without risking vacancy.
Most people realise that renovations should add value to a property.
And the reality is that if you’re running your property investments as a business, renovations need to bring in a higher weekly rent, or money isn’t being well-spent.
Well-chosen renovations can add 10% or more to the weekly rent.
Others, however, cost an arm and a leg, but only add value on paper, not on the rent itself.
In order to raise the rent, a renovation must deliver tangible value to your tenant.
So there should be no surprises then that almost every expert we spoke to said the top renovation is adding bedrooms.
A three bedroom property, for example, will rent for more than a two bedroom, even if the footprint is the identical size.
That’s because renters either want to put more people in the house or would like to use the extra bedroom as a study or a media room.
But there are other rent-boosting renovations you can do. Here’s our list of the top five:
1. Adding an extra bedroom
2. Converting the garage
3. Putting in a granny flat
4. Getting a great paint job
5. Making bathrooms better
In the latest issue of NZ Property Investor magazine, we explore what these renovations involve and why they are profitable.
To read the full story, click here to get the digital issue of NZ Property Investor magazine.
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