Do not Waste Your Money

Posted on Monday, June 8 2015

It seems we spend more time talking to landlords about how not to spend their money than we do telling them to spend it sometimes. When your renovating an investment property there are 2 key rules the first being the renovation cost must increase the value of the property by at least as much as you are spending hopefully more, the second is that it must increase your rent and your rent ability ( the fact that prospective tenants will choose your property over other similar properties on the market ) and pay more for yours as well. So BEFORE you start your next renovation ask yourself those 2 key questions an if the answer to both is yes then spend your money if it’s no then keep your notes in your pocket.

So once you have that sorted work out exactly what areas will provide the best return for your investment ( always start with kitchens and bathrooms always ) then paint and floor coverings as all of these are visual and will sell your rental property to prospective tenants every time. Don’t forget “street appeal” tenants often tell us when renting our own properties how they turn up at places and take one look from the outside and drive off without even going in. Thank you to those dumb landlords for increasing our rents and rent ability! Mow the lawns , paint the fence , wash the house and put up a new letter box and add $10 a week to your rent once it looks the part and you will be laughing.

Renovating an Investment property should be easy , well managed and delivered in a set time-frame – get these components right and you will succeed every time- get it wrong and your costs will mount , you will have no income and you will be in trouble. So be smart , be prepared and do it right and remember Don’t waste your money!

Mark Trafford is a director of Renovate To Profit:

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