We’re here to answer two of the more common questions asked by property investors - what are the greatest influences on rent, and how can you cost-efficiently add these factors to rental properties to increase its rental demand and value?
In general, the more bedrooms there are, the more people can live there, and the more people that are occupying the property, the more rent that can be afforded.
One of the best ways to increase the value of a residential property is to add a bedroom. Sometimes a laundry is of a far larger size than necessary, a very large bedroom can be split in two, or there is an extra living area that can be turned into a bedroom. The input of a builder can help determine how much it would cost to renovate to add an extra bedroom, and you can then do the sums to make an informed decision.
Properties with heat pumps have a distinct advantage over those without. Tenants are becoming more and more willing to pay more for a warm, dry home. In-home ventilation systems such as DVS or HRV have a dual benefit – they not only make the house feel warmer, but also reduce condensation and mould, saving on maintenance costs.
3. Good Location for Their Needs
As a general rule, being close to local facilities, community areas, within school zones, and along public transport routes will be a huge advantage for most rental properties. When investing, consider what market you hope to attract – is it a young family, students, or young professionals? These groups will have different needs when it comes to location.
4. Living Areas
The number of living areas should be proportionate to the number of bedrooms within the rental property. In properties with more than four bedrooms, people usually expect a couple of living areas, even more so when the property is in higher rental areas. Minor renovations can help increase the living space, increasing the rental value of the rental property. For example, installing an “island” in the kitchen to create another dining room area and enlarge the kitchen space at the same time.
5. The Property’s Presentation
First, you need to decide what sort of tenant you are targeting. There are tenants who want to save money and are happy to live in a property that is not in first class condition. There are others, such as professional people, who are happy to pay top rent, but expect the property to presented at its absolute best. There is no doubt that a well-presented property will achieve top market rent and will usually attract the best quality tenants. That adds up to a higher investment return, together with fewer and shorter vacancy periods.
Adding to your property’s rental value isn’t necessarily difficult, you just need a bit of imagination combined with strategic, informed decision-making.
Our Quinovic Wellington Property Management companies have had years of experience in the Wellington Market, we know what tenants like, and what they’re willing to pay more for. If you want to know more, feel free to get in touch and learn how our Wellington Property Managers look after properties and tenants.