The rental property landscape is getting increasingly tougher and more competitive. With so many investing, competition is only set to intensify. Naturally, as an investor, you want to reap the highest possible return on your investment and there are numerous factors at play here.
Every little thing matters, from the location (beachfront or heart of the city?) to the type of property (townhouse or cosy bungalow?). In order to increase rental yields, it’s important to ensure your property offers design features that attract quality tenants. We’re talking style and overall user-friendliness, which will add value to your property and increase your ROI.
1. Futuristic kitchen
It’s a shame that property owners still don’t utilise technology to the fullest of its potential. The kitchen is a wonderful spot to make the most of technology from automated stoves to smart refrigerators, you can easily rely on computers to do most of the hard work for you in the kitchen. Most new homes and rental properties have taken advantage of incorporating technology into the kitchen which makes the property more attractive to both buyers and those that are looking to rent. Another way to boost the rental appeal of your investment property is by incorporating smart home technology and partnering with reliable IT services.
2. Improve the landscape of the house or building
The surrounds of a property are just as important as the building itself, especially if a property happens to have a spacious front, side, and/or backyard. It’s important yards are properly maintained and landscaped. If you have space for items such as water fountains or raised garden beds, consider making the extra investment. You will find most renters take the overall appearance of a property into account when deciding on whether to sign the lease and when agreeing to the rent price.
3. Turn the attic into a room
Often, getting the most out of your rental property requires a little bit of outside-the-box thinking. Take your attic, for example. If you’re lucky enough to have a property with an attic, you have a massive opportunity to add extra value to your listing. With a reasonable upfront investment, you can turn an attic into an extra room.
4. Renovate the bathroom
Like a refurbished kitchen kitchen, a modern bathroom provides sort of a “wow” factor in a property. Most people look for kitchens and bathrooms that provide them with ease and comfort. Renovating the bathroom and upgrading it with newer appliances and utilities that incorporate technology provides ease and comfort to users. You also want to make sure the area is clean and mold free.
5. Remodel the bedroom
The bedroom is one space where people tend to spend quite a lot of time at home, so it’s one of the main items on the agenda of any potential renter. Try your best to play up the strengths of your bedrooms. If there’s a prominent window with a great view, add a pair of drapes to make it the true focal point of the room, for example.
6. Furnish the property
Another popular unique selling point is including furniture as part of your rental. Standard utilities like a fridge and microwave are a good start, but you can go the extra mile (and get extra return) by including a quality couch and/or dining table when you put your property on the rental market. Just don’t overdo it, as most renters will have their own items to move in with and their own tastes.
7. Incorporate solar energy
Solar energy is not only a great talking point for your property, it can help tenants save money on energy consumption and you can adjust rent accordingly. However, make sure you consider the maintenance required for different solar power systems so you don’t get stung down the line.
8. Adding blinds or curtains on the windows
Getting blinds or curtains installed is simple and with the right supplier, doesn’t have to involve a lot of guesswork. However, most investors tend to leave windows and any furnishings as they are. It’s unfortunate, since the right style of window furnishing can totally transform the aesthetics of a room.
9. Provide space for entertainment
Again, think outside the box. A basement doesn’t just have to be extra storage. You can clean it up or redesign it and turn it into a space for a home theatre. A big yard has loads of potential and you can add a basketball hoop, a trampoline or even a swimming pool to maximize the level of fun and therefore the interest from renters and your rental yield.
10. Add a garage
Covered parking can be a huge selling point for some renters and if you have the space, consider making an addition to your property in the form of a garage. If you’re looking for an option that’s cheaper but serves the same benefit, consider constructing a car port with a paved driveway.
Investing in income properties with smart design features can significantly increase rental yields. By incorporating features such as outdoor living spaces, energy-efficient appliances, and ample storage, landlords can attract and retain high-quality tenants who are willing to pay a premium for quality housing. Additionally, thoughtful design choices can enhance the functionality and comfort of the living space, creating a better overall living experience for tenants. While it’s important to consider the upfront costs of these upgrades, the long-term benefits in terms of increased rental income and property value make them a worthwhile investment. By staying attuned to the needs and preferences of renters and investing in smart property design, landlords can enjoy strong returns on their investment properties for years to come.
Ryan Lewis is a director at Lovelight. He has a keen eye for detail, is passionate about quality and is also a huge lover of bikes. He is married to Naomi and he is proud father of two – Asha & Jack.