How to fast track extra income from your existing rental properties.
Landlords often fail to recognise that owning a property is like a business and to get the best results they need to treat it like a business. Most investors know that the performance of real estate as a financial asset is outstanding over the long term, however a lot of property investors, like homeowners, have unrealised equity and potential extra income hidden in their rental properties. The majority of landlords buy their property, install the tenants as quickly as possible and leave the property to sit there for years untouched, just sitting back waiting for capital growth to eventually kick in. They only carry out minor maintenance jobs when the tenant or property manager alerts them about a problem and give no thought at all to regular maintenance. In fact it is very rare for a landlord to have a planned upgrade and maintenance program set up for their investment. Naturally over time the investment property’s general condition will deteriorate.
I have also heard this story numerous times from landlords – “I have a great tenant who always pays their rent on time and never causes me any problems so I reward them by not raising the rent”. It is not unusual for a landlord of a long held property, to be willingly receiving 30-40% below market rental! And yet owning a property investment is supposed to be a wealth creation strategy.
Tenants are your greatest asset
“Properties are just bricks and mortar without bank accounts. tenant’s who are living breathing humans, are the ones with the cheque books”
Have you ever considered that tenant’s are a landlord’s greatest asset because they are paying off your investment for you. Tenants are just like any other homeowner in that they also want to live in an appealing, well cared for property that gives them a certain standard of lifestyle. If you can improve the amenity of your rental property, you will attract a higher quality tenant who will appreciate the “extras” and be willing to pay a premium rent to live in your beautiful property.
Making a commitment to adding value to an investment property by investing in a cosmetic makeover, will not only give you instant equity, it will increase your ability to charge a higher rent. If you want to run your property investing like a business instead of a hobby then here is a recap of the benefits
- Gives you instant equity – don’t wait for the 7 – 10 year property cycle to give you capital growth
- Increase rental yield
- Attract a better quality tenant
- Maximise tax deductions
If Property investors want to ensure their asset is performing at its peak and bringing in the biggest amount of income but don’t want the hassle of organising a makeover themselves, they should consider using the services of a home makeover specialist.
Houses to Impress provides project management and interior and exterior design advice to property investors wanting to transform the appearance of their investment property, add instant equity and increase rental yield. Using both our property renovation and professional home staging expertise, we show landlords how to transform their investment property for the most contemporary look and the largest return.
Kate and I were interviewed by Angelo Meno of Adelaide Property Finders, an Adelaide based Buyer’s Agency about the benefits of adding value to an investment property.
Click here to go view the 30 minute video on Renovation and Home Staging.
For further information about how we can help you to improve your investment property please call us for a FREE 15 minute consult.
Charyn and Kate Youngson
Authors | Professional Home Stagers | Speakers
