Rental renovation tips: 9 ways to quickly boost your property's value

The answer is yes. Even a simple renovation can attract better-quality tenants who want a fully functional home with all the modern conveniences, one that is easy to clean and maintain, and are willing to pay more for it. For landlords, quality tenants mean not only higher rental returns, but also longer tenancies, more stable rental relationships and better care of the property. Renovated and upgraded homes can also deliver higher returns when sold.

More and more landlords are therefore choosing to renovate their rental properties. However, spending more on renovations does not necessarily mean a higher return on investment. Only by investing in the right upgrades and alterations can you achieve higher rental income and resale profits. So what are the ‘right’ upgrades and alterations for a rental property? They are those that increase its value as quickly and substantially as possible for the smallest outlay. Kitchen and bathroom renovations are key to increasing rental value. Beyond choosing which areas to renovate, the work involved and the building materials used can also differ considerably from those for an owner-occupied home.

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The following 9 approaches can help you quickly increase your rental property's value:

Make your rental property more comfortable

Install a heat pump: New Zealand summers generally call for electric fans, while heating is essential in winter. Heat pumps offer an energy-efficient alternative to furnaces and air conditioners. Installing a heat pump in your rental property can attract tenants willing to pay more for it. You can install individual heat pumps in each room or use a ducted heat pump to heat the whole house. Central heating will also substantially increase the property's value if you decide to sell in future.

Upgrade the insulation: A well-insulated home benefits tenants' health and can also extend the property's lifespan. This is because an uninsulated home can encourage black mould to grow and penetrate the walls, causing wall linings to crack and damaging the structure. Quality tenants are also willing to pay more for a healthy home. Extending the property's useful life while increasing rental income makes insulation a long-term investment with benefits on both fronts, rather than simply an expense.

Kitchen upgrades and renovations

The days when the kitchen was simply a secluded room at the far end of the house are long gone. Today, the kitchen is an integral part of everyday life for New Zealanders. An open-plan kitchen is not just a trend but a way of life. Alongside the kitchen's structure and layout, attracting and retaining quality tenants requires materials such as hardwood flooring that are easy to clean and need little care, because you cannot be sure tenants will carefully look after their rented home.

When renovating a rental property's kitchen, the following points deserve particular attention:

An open-plan layout: As mentioned above, open-plan kitchens are both a trend and a way of life. If your kitchen is a secluded room, it is best to engage a professional to plan how to integrate it into the living space. Removing the two walls separating the kitchen from the living room to create an open-plan living area will attract more prospective tenants and bring higher rental income. It will also add value if you plan to sell in future.

Flooring: If you decide to replace the kitchen floor, laminate or acrylic flooring is recommended for its easy maintenance, ease of cleaning and value for money. Both cost less than hardwood flooring and are very durable, saving money while extending the kitchen floor's lifespan.

Replace cabinets and drawers: Replacing cabinets is a great way to give a kitchen a fresh look. Most people assume that replacing only the cabinet drawers is cheaper than replacing the entire cabinets, but this is not the case. Making whole cabinets is easier than finding cabinet doors to fit the existing structure. For durability and low maintenance costs, we recommend Melteca, a surfaced fibreboard, rather than solid timber.

Depending on the kitchen's size and the materials chosen, new cabinets, doors, drawers, drawer runners and shelves cost between NZ$5,000 and NZ$12,000.

Bathroom upgrades and renovations

Apart from the kitchen, the bathroom is the room tenants and homebuyers pay most attention to. When renovating and upgrading a bathroom, the following two points deserve particular attention:

Ensure good waterproofing, warmth and ventilation: Moisture is the enemy of walls and buildings. Professional bathroom waterproofing and ventilation will extend the property's lifespan while keeping tenants comfortable. Good waterproofing and ventilation will greatly reduce potential damage and save substantial maintenance costs.

Install new fixtures: A bathroom with outdated fixtures such as a toilet or bath is unlikely to attract quality tenants, let alone command a high rent. In fact, a shabby bathroom often puts off prospective tenants and buyers. Replace an old bath with a modern shower, replace a yellowing vanity, and so on. Generally, upgrading a bathroom costs less than NZ$12,000, but can substantially increase the property's value and rental income.

Repaint your rental property

Repainting is one of the simplest, cheapest investments that can dramatically transform a rental property's interior. If some rooms have wallpaper, strip it off and repaint the walls. A fresh coat of paint breathes new life into a room and can greatly increase prospective tenants' interest, boosting rental income.

When renovating a rental property, it is best to choose options that withstand the greatest wear and tear. When repainting, it is therefore best to work with professionals and use oil-based paints. Compared with water-based paints, oil-based primers and paints can withstand more wear. Although oil-based paints cost more, they have proved a worthwhile investment.

Give your property ‘kerb appeal”

‘Kerb appeal’ means a home's visual appeal from outside. First impressions of the exterior undoubtedly have a major influence on prospective tenants' choices.

A beautifully presented outdoor area gives prospective tenants or buyers their first impression of your property. Aucklanders like having an outdoor space where they can entertain family and friends in summer. An attractive deck or outdoor area can greatly increase a property's value and make it easier to attract quality tenants. It is therefore worth spending some money renovating the deck or patio to a high standard. Deck renovations are inexpensive and can deliver a strong return on investment.

Keep the garden well maintained

In Auckland's competitive market, tenants' first impressions of a rental property matter greatly. Quality tenants care about whether the exterior is well maintained, so looking after the garden is essential. Trees need proper pruning, and planting flowers and other greenery can give the rental property extra visual appeal.

Research shows that good landscaping can increase a home's sale price by 5.5% to 12.5%. While an earlier interior design may fall out of fashion, garden plants only become more lush over time, adding value to the property.

The best way to add value through landscaping is to make a plan. Before starting, it is essential to seek professional advice, do some research and develop a sensible, coherent plan.

Replace carpet with hard flooring

Traditionally, carpet has been the flooring of choice for living areas in most Auckland homes. However, carpet is difficult to maintain and gets dirty easily.

As mentioned above, rental properties should be renovated using materials with low maintenance costs. If your rental property's carpet looks dirty and worn, tenants are unlikely to show much interest.

To improve rental income, it is best to replace old carpet with quality laminate flooring. Its low maintenance requirements and high durability will extend the floor's lifespan. It also offers good value, meaning replacement will not be very expensive even if careless tenants damage it. Laminate flooring comes in a wide range of colours, textures and designs, so replacing the flooring can make a rental property more attractive and generate greater tenant interest.

Small changes can make a big impression

If circumstances prevent you from making major upgrades or renovations to your rental property at present, consider a few small changes. As the saying goes, details determine the outcome. Some inexpensive adjustments can make a surprisingly strong impression on prospective tenants.

Replace old curtains and blinds: Old curtains can make a room look shabby. This small change can give it a fresh new look.

Replace an old cooktop: For most tenants, the kitchen is a top priority when viewing a home. If a full kitchen upgrade is not possible, it is best to replace the cooktop. A greasy old cooktop can put prospective tenants off, while a quality replacement costs about NZ$500. If this increases the weekly rent by NZ$10, it can provide a good return on investment. Induction cooktops are currently the most popular and efficient option.

Replace old bathroom taps: Old, yellowing and cracked bathroom taps may seem like a minor detail, but they can give quality tenants cause for concern. Replacing all the bathroom taps costs little, yet gives tenants the impression of a clean, tidy bathroom.

Replace the kitchen benchtop: Upgrading to an engineered stone benchtop can instantly improve the kitchen's appearance, adding beauty and giving it a more premium feel. Engineered stone benchtops come in many designs and textures, offer good value, and are durable, easy to clean and long-lasting.

Give the property a thorough clean: Hiring professional cleaners before tenant viewings is well worthwhile to ensure the rental property looks its best. Clean the windows and clear away outdoor clutter; wash the exterior and clean the interior furnishings; polish hardwood floors to give them a better shine. A home in good condition attracts good tenants willing to pay a higher rent.

Add a dishwasher, washing machine and dryer

More and more people are looking for rental properties that make their lives better. Renovations should therefore include installing and upgrading basic amenities to attract quality tenants. The law does not require rental properties to have a dishwasher, washing machine or dryer, but these appliances offer tenants considerable convenience. Landlords can also earn higher rental income as a result, so why not?