Are you keeping your investment property renovations in order? When hoping to rent out your investment property, it is important to realize the common trends and demands in the market alongside simple tasks you can do to ensure that your property is ready for renters.
Local Property Analysis
To properly see what investment property renovations you should add into your home, a formal analysis on how competing properties are performing should be done. To do this, you can join local home open house showings to observe the current offerings of the housing market. While doing so, it is also wise to pay close attention to what people’s opinions as it can provide crucial market insight as to the desires and lifestyles of the people that live in the area. Also, if you were managing a property that was close to shopping, freeway access, or a local “hot spot,” for instance, it might be important that you take note of the kinds of individuals that may wish to live in your home.
If you don’t follow the right steps properly set up your house for the right market in Melbourne, it may take longer to find renters, or the renters might not stay as long, resulting in a higher turnover rate. Take the proper steps in tending to your investment property renovations by ensuring that your renters are getting what they need.
Fulfill the Needs of Your Target Market
A property investor in Melbourne took notice when a rental property took longer than average to rent out. After further analysis, they figured out that the home they were renting out was in a commuter or eco-friendly area because it was close to a major public transportation hub. The prospective tenants that were viewing the property investor’s home were interested in the property; but after learning that the access to the hub was closed off by a high fence with no gated access, they decided to walk away, losing interest in the property. Had the owner left the gate access that was allowed by the city and hub, they may have had a better chance of getting renters. Adding solar panels and alternate charging stations can be a boon as well.
Now in comes the part where you have to think about the market and what investment property renovations you need to make. Customarily, families with animals look for properties with a fenced yard. Elderly individuals might appreciate more of a low maintenance garden, more storage space, and bedrooms with ease of access.
Meeting the Housing Standard
Sometimes, it would be proper to simply apply a fresh coat of paint or put in new carpeting in your investment property. The standard of rental renovations is to constantly adapt to the budding demand in the market based on what people in the area are looking for in a home. New appliances or a new coat of paint could be important in increasing the value of the rent and/or allowing your property to be occupied for a longer period of time. A house that is not properly maintained or updated could lead to damages or deterioration. Residents can also be unhappy if they are given outdated appliances (including a fridge, microwave, or oven), and those negative feelings could reflect on the property itself.
You could also adapt depending on what the housing market is. For example, if your property has four bedrooms and one bathroom while the demand in the area is for three bedrooms and two bathrooms, you could decide to add in a landscape, basic cable, or internet services.
By understanding the demands of the local market, you can make the proper adjustments without doing a complete overhaul to renovate the whole property. The key to making investment property renovations is to do what is required of the market and ensure you are meeting the right demand in your area.