Maximising the performance of a rental property is a key part of the rental property journey. It not only improves the return on investment for the landlord but also increases the tenants enjoyment of the property and can engrain them in the community further through comfort in their home.

There are, however, some improvements that won’t have the desired effect and can hinder the properties output or possibly put the property out of reach of too many tenants to benefit the landlord, potential tenant pool and community. 

Striking a balance for cost effective improvements is imperative and one that should be done in consult with your builder, sub-contractors, financial advisors and property managers to ensure that what is done benefits all parties involved including increasing the properties. 

Cost up the items below then ask a local property manager what that upgrade would do to affect the rent i.e how much a tenant would pay extra to have the upgrade to ensure that you obtain a suitable return on investment. 

Some great ideas for upgrades are: 

1. Paint, Paint and more Paint. Colours fade and date quickly. Giving a property a fresh coat of paint (both inside and out) can instantly promote the property to the top of the pile. Tenants will want to be there because the property feels newer and will enjoy living in a well presented home. When choosing choices, it is always recommended to stay conservative with options for a rental to however be location specific. If your rental is in Omaha beach or Matakana then look online at “for sale” or “for rent” listings there to see what has recently been renovated/built and looks good for the area. Check your local area to see what is working there. 
2. Bathrooms and Kitchen replacements. These are great changes to make as they more often than not can be done without costly consent processes. Locals in the Rodney north area love going down to the local markets in Matakana, Puhoi and co to bring back fresh produce for their kitchens. Having a well presented kitchen will be a great addition here. Same goes for bathrooms, as the replacements can be done cost effectively, the improvement should always be one of the first considerations when thinking about upgrades. 
3. Landscaping. This is a great one as it is mostly just labour and can make a world of difference. Up here in the Kōwhai coast we are surrounded by the outdoors so why would we not want our own backyards to reflect the beautiful nature we have at our doorstep. Having a great first impression when potential tenants come to view the property get it off on the right foot. If the tenant can see there is a usable outside living space to enjoy the Mahurangi summer then they can already imagine living here. 

What to avoid?

1. Consents! Thats not to say you should discount all work that will involve consents as some will be required by law and some does just make plan sense however if you’re looking to remove a wall or change a layout then its important to really find out the cost benefit to this modification. If it increases the property price to a point that makes it suit then go for it. Just be very weary that when consent applications start the jumps in rental price achievable need to be large enough to cover them. 
2. Changing layouts with no increase in rooms similar to the consents note. If you are swapping a wardrobe for an office or a laundry for a bathroom with no increase in usable rooms then the consent process or labour used may not cover the increase in rent achievable. Instead of playing musical chairs with rooms, consider engaging a professional architect to see if its possible to change that 2 bed, 1 bath 90sqm house into a 3 bed 2 bath. 
3. Chattels that command high maintenance I’m looking at you swim spa overlooking Mathesons bay! If you have operating chattels on site that are easy to maintain then offering them to a tenant can increase the property appealability. However, if that spa is falling to bits or that expensive plumbed-in double door fridge is on the way out then look at removing it. If there is a nice deck for a spa with power then simply having the space as an option for the tenant to install one is enough. If the cabinetry doesn’t demand a wide fridge then leave it empty for the tenant to supply or supply an economic alternative that won’t require water filter replacements etc. Bear in mind that when a landlord supplies a chattel they must maintain/repair it throughout the tenancy.  

There are expectations to each rule and they can be location or property specific however. If in doubt simply reach out to your support network of property managers, builder and subbies that can all give you an idea of where to focus your attention to ensure the best outcomes for the property, potential tenants and ultimately you, the landlord achieving your long term goals.