Apartments or rental properties are a fantastic source of passive income. You can go on holiday or plan for retirement knowing there’s a steady source of money rolling in each month. Could your investment property be working better for you? What can you do to maximise the return from your rental and make your retirement goals move one step closer?

Location, Location, Location

If you’re looking to buy a rental property, see what else is around it. Is it close to shops, a mall, bus routes, a good school zone? These are all marketable features that tenants will consider when making a choice between rental units. If the apartments are similar, the one closest to more amenities wins.

Read more: Who looks after the property? Landlords responsibility vs. tenants. 

Heating and Cooling

Knowing they can stay warm and not pay a fortune is a big drawcard for tenants. Make sure your property is insulated and has central heating or a heat pump. In some cases, tenants have been willing to pay extra rent to have a heat pump installed because they know it’s cheaper to run than a fan heater. With new legislation around maintaining rentals, insulation cannot be overlooked. There may be grants available in your area to help you get insulation installed.

Kitchen

Often the heart of the home, and where people spend time preparing for their day and winding down at the end of it. Energy efficient appliances, and a modern look, will help raise the value of your rental property. While it’s common knowledge renovating a kitchen is a power area for adding value, it’s important to make effective use of the space and not go overboard. An inner-city apartment with a massive kitchen and not much else won’t give you the return on your investment.

Bathroom

Another power area in a home known for adding value. Before overhauling, make sure you nail the basics. Make sure it’s well ventilated, clean, dry, and that there are no signs of damp and mould. Adding a pressurised showerhead, underfloor heating, and fancy vanity will add very little value if your property’s bathroom suffers from poor general hygiene standards.

Lighting

The biggest impact on the look, feel, and tone of a room. You can use lighting to create more space, make living areas feel warmer and bedrooms more relaxing. If you can make tenants feel comfortable and at home in your rental property, they’re likely to pay more for the privilege and stay longer, which will help with that passive income.

Extra Room

A bold move, but done correctly will pay dividends. If you’re in a great school zone, or close to university, people might be looking for that extra bedroom. Another person on the tenancy agreement can increase the rental value of property. One option is extending the property, while another is moving existing walls to create space. It’s important you consult a builder or architect before you start swinging a hammer. If you’re targeting inner-city professionals, another room might impact the already limited living space and not add any value.

There are many options for property investors to increase the value of their rental properties. A few little changes might mean retirement is just around the corner. Always seek professional advice before altering your property.

Download our A-Z guide is a handy guide to help you navigate the property investment world, and make buying, leasing, and selling homes that much easier: