A growth-industry of contractors has emerged in the past few years. These contractors spruce-up tired properties, making them ready-for-sale. Often this involves a project manager who co-ordinates an accelerated process — a couple of weeks — that involves superficial measures such as painting, landscaping, window-cleaning and updating (for example, new carpets, blinds or cabinets).
For a relatively small outlay, these investments often boost the sale price substantially. The same tactics can be used for maximising rental returns.
People don’t like spending money on their investment properties. But investing in speedy ready-to-rent rejuvenation can boost returns, preserve the property and attract a better quality tenant.
And there are other benefits. For non-structural updates, landlords needn’t go through bureaucratic processes such as planning permits. Upgrading properties can also offer tax offsets against investor income, and they can increase the property’s capital value, giving the investor more leverage potential.
We’ve recently seen some updates co-ordinated with great speed and outstanding results. A quick improvement can be a good strategy to get an existing property in good condition for better returns — immediate and long-term.