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"cheap things you could do to increase the potential rent."

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  • "cheap things you could do to increase the potential rent."

    Hi
    So lets say you have just purchased your first IP.

    3 Bedrooms with lets say a car port and a reasonable sized back yard.

    As the title asks...What can you do to increase to potential rent ?

    Richard

  • #2
    The biggest rent increase potential comes from adding a room. Turning a laundry into a small "study" or dividing a big lounge. Alternatively, making a rumpus room or sleep out is another good option.

    An extra room will be minimum, an extra $50 a week.

    Shane

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    • #3
      After you have got everything neat and tidy, it will depend on the property.

      You need to look at it and think to yourself 'What is the unique thing about this particular property that would make a tenant sign up for a higher rent level and not any of the others available in the market' and accentuate that particular feature.

      For instance, I have just renovated a one-bedroom flat in a block in Manurewa.
      I identified its unique advantage as having its own private secluded lawn area.

      So I rebuilt the porch that accessed the back door into a deck, moved the washing line that was placed right in the middle of the lawn off to the side of the area, heavily cut back the surrounding shrubbery, and opened negotiations with one of the adjoining property owners to go 50 - 50 on a new timber fence to replace the old three-wire one.

      By making a feature of this outdoor area, I have been able to rent the flat for $55 a week above the previous rent level.

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      • #4
        A small deck to sit out on preferably at the back . Although decks can prove costly & do have some maintenance factor.

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        • #5
          Paint...there is nothing like bringing the "new house smell" to an old and tired IP.

          Whilst I don't think it generates a huge increase in rent, I've found that keeping the interior freshly painted and windows dressed with curtains that actually fit helps keep my IPs occupied.... i.e. tenant turnover is lower...most of my tenants stay for 2 plus years which is considerably more than the average of 11months.

          And a decrease in vacancies means more money in my hand.

          I also think I get better quality tenants....more people want to live there thus my choice of tenant is increased

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          • #6
            depending on the location - wall mount flat screen TVs
            Profiting from Property, not People

            Want free help on taking your portfolio to the next level?

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            • #7
              Good neighbors! Preferably not a gang!!

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              • #8
                Bucket of paint
                New carpet
                Nice deck

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                • #9
                  Is insulation making a difference in rentals? Im assuming it will make them rent faster rather than increased $$?

                  I am considering doing mine in Dunedin as tennant has CS card so should work out relatively cheap. House was reasonably warm when we lived there, but I am sure it could be improved.

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                  • #10
                    I second paint... best bang for your buck.
                    My Profile

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                    • #11
                      Paint is a given I would of thought. Who would do all these other things if the paint is looking tired?
                      Profiting from Property, not People

                      Want free help on taking your portfolio to the next level?

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                      • #12
                        Originally posted by DaveW View Post
                        Paint is a given I would of thought. Who would do all these other things if the paint is looking tired?
                        Yeah I think a lot of the things suggested are nice ideas but aren't worth the expense and limited rental return.
                        My Profile

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                        • #13
                          Originally posted by drelly View Post
                          Yeah I think a lot of the things suggested are nice ideas but aren't worth the expense and limited rental return.
                          Yes like a lot of questions on this forum the answer depends on a host of other things making up the bigger picture. Location, quality of tenants, the owner motivation, whether they are long term thinking or short term to get a valuation for re-finance, etc etc.
                          Profiting from Property, not People

                          Want free help on taking your portfolio to the next level?

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                          • #14
                            Had a conversation with a valuer re insulation recently, it's regarded as a bare minimum these days so not the sort of thing that adds value apparently. I'm sure most tenants these days are aware of the benefits though (because the TV told me so).

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                            • #15
                              Originally posted by richard56 View Post
                              Hi
                              So lets say you have just purchased your first IP.

                              3 Bedrooms with lets say a car port and a reasonable sized back yard.

                              As the title asks...What can you do to increase to potential rent ?

                              Richard
                              If your looking for "cheap things" your house must not need a make over so may be in reasonably condition, surrounded by other reasonable properties.

                              1.Write a good feature/benefit advert and taking good quality pictures.
                              2.Go bananas with your camera and take a tonne of pictures, have each room looking its best in each photo. Unless you are using a professional camera the rooms will always look smaller. Open the window and take inward photos of the rooms, where possible. Trademe lets you load 20 photos. If you only have 5 good ones, load just 5 good ones.
                              3.Talk with each prospect as they call and arrange a time to view. Have 3 times in your head that you can make, so they have options to see the property.
                              4.Be at the house early, turn on the heating, the lights, and ensure the place is tidy
                              5.When they arrive, be nice, smile, and welcome them in
                              6.Let them walk around on their own. Dont hover, dont overload them with information until they ask. YOu have already listed all the features of the house on the advert. Thats why they are there. They liked what they read.
                              7. Answer their questions. Smile.


                              These points are all Free. Dont cost a cent. Just your effort to show the property at its best, and be approchable and friendly when the prospects arrive.

                              That been said, if the house is a dunger, in a rubbish area, surrounded by other rubbish, RUN AWAY

                              All the best,

                              Niall

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