Smart investors are taking advantage of temporary rental vacancies by renovating and upgrading their properties.

According to the Real Estate Institute of SA (REISA), increasing levels of home ownership by First Home Owners had led to a rise in rental vacancies in many parts of Adelaide over the last 12 months.

Like any asset, an investment property required periodic maintenance and experienced property owners were using this time to protect their investment.

Regular maintenance of rental properties is essential in order to maintain the value of an investment – both in terms of the capital value and the rental returns.

During the course of any property investment, the rental market will experience highs and lows relating to purchasing trends and population movements. Current market conditions create an ideal opportunity for property owners to ensure their investment is properly looked after.

Eight years ago, Will and Kate Burton rented out their older-style flat in the inner eastern suburbs when they moved into a larger home further from the CBD.

The Burtons say that for almost all of that time their flat has been occupied.

When a long-term tenant vacated the property recently, the Burtons decided it was time to undertake some renovations, not only to improve their chances of renting, but also to improve the value of their investment.

“When we first lived there 12 years ago we did some minor renovations and redecorating. Now it looks a bit tired, particularly compared to some of the newer apartments in the area,” Kate said.

The couple decided to use the time the property was vacant to upgrade and repair, and spoke to their property manager about what improvements they could make to attract quality tenants and to improve the property’s value.

“I think our flat has a lot of charm and I know many people prefer the older style of flat. We didn’t want to do any renovations that detracted from the style, but we did want it to look fresh and bright,” Kate said.

“Some things we can do ourselves, like repainting, ripping up the carpet and polishing the floorboards, and upgrading the security. We’re also looking at upgrading the kitchen and bathroom – not spending a fortune but repainting and replacing some worn and dated fittings,” she said. “I think it is important to look after the place anyway and if the property looks good I think tenants are also more inclined to look after it.”

A poorly maintained residence didn’t encourage good tenants. It also reduces rental returns and devalues the property in the long term.

Apart from the property owner’s legal obligation to keep a rental property in good shape, by regularly upgrading and maintaining the property you might be able to charge a higher rent, particularly when the market picks up again. Using a temporary vacancy to maintain your investment property might mean you are able to turn a down time into a period of greater profitability.

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Property Management Experts – We’ll look after You.

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