Hi,
While opportunity exists in every market, there’s certainly no need to wait around until it taps you on the back!
Investors with exiting properties need to be pro-active in considering ways to add value. Here are two ideas that centre around the idea of creating more in perceived value than actual cost:
1. Complete some minor renovations where every $1 spent creates more than $1 of equity through increasing the after-reno value of the property. Don’t tinker with gardens and around the cosmetic edges… focus on creating more useable space as that is what commands a premium price.
2. Ask your tenant if they?d like an improvement in the property as a trade off for a rent increase. It doesn?t have to be a major rent rise to have a significant effect on your bottom line? $5 extra a week on a 8% yield adds $3,250 to the value of the property!
Don’t make the mistake of looking outside for the best deals when opportunity might be knocking from within!
Please post ideas / comments about this topic, especially if you have added value recently and want to share your strategy!
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Okay, I’ll start it.
I lived in my IP for 4 years. Most I did was put refrigerated aircon in. When I moved in with my girlfriend, I rented out my unit. After replacing the back door, putting in fan/heating in bathroom/toilet, and having it painted, I had it valued.
I nearly hit the floor. Paid 67000 in 98, worth 85000 in Jan 04. Get 165/w for semifurnished.
Stoked about that
Cheers
“Looking forward to the day when I can tell the boss where to go”
Fantastic post Steve,
I couldn’t agree more!!! So many people have the misguided opinion that in order to make (more) money they have to be bowled over (literally for some) by that “perfect opportunity”. They don’t realise that by waiting for this, they risk overlooking perfectly viable opportunities that are right under their bloody noses!!!
That is how people become financial well-off, by maximising the assets they already have, rather than just sitting around waiting for new ones to make the real difference.
Thanks for the comment; extremely valuable!!! [biggrin][biggrin][biggrin]
Cheers,
Jo
Just an idea that I’ve seen work well in Canada…
Where there are two properties on a single title that share a garage… rent it out to the higgest bidding tenant!
Alternatively, if you own all the properties on a multi-dwelling title, grant exclusive use of common area (such as a driveway, backyard, garden etc.) in return for an additional $XX per week.
All little ways to earn extra rent to improve your bottom line.
Slicing up the pie can actually provide you with a little extra. [smiling]
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Oops Sorry Steve,
You asked for comments re improvements…..yes I like adding carports to IPs that don’t have any carparking cover (i.e. garages); it is cheaper than full on garages, and adds an extra 15-20 dollars extra per week, paying for itself nicely over a couple of years.
Jo
Garages/carports????? We must have been posting at the same time Steve….LOL
Jo
[wink4] he he
One person’s garage is another person’s carport
[smiling]Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Steve and fellow forumites.
My new tenants are getting fences to turn their flats into little townhouses. I am also gardening the front, painting the besa block, and putting extractor fans in the bathrooms. Its not a huge outlay, but it will completely change the character of the block, and make it more attractive for the tenants to call home – and hopefully stay there forever as nice tenants!!
CD
CastleDreamer
Originally posted by SteveMcKnight:[wink4] he he
One person’s garage is another person’s carport
[smiling][lmao][lmao][lmao][lmao] I’ll pay that one!!!!
Another improvement to IPs I particularly don’t mind spending money on, is adding BIRs to bedrooms; tenannts really appreciate this, and homes with BIRs tend to fetch a healthier rent each week.
Jo
I built a garden shed (kitset,) $390 on the tenant’s request and and charged the tenant an extra $5 per week, 130 percent return on shed p.a.
tenant was really happy, too
joy to the world
I must be in one of my philosophical moods, as it strikes me clearly that your point, Steve about not waiting for opportunity to tap you on the back, is so pertinent for all areas of life. If you see an opportunity, you need to be brave enough to have a go, and take it on the chin with a grin if it doesn’t work out. “They” say that the greatest number of opportunities are right where you are. [happy2]
The property concept is definitely true, Mini’s garden shed, Monopoly’s carports (are they like little green houses and red hotels? Can we add them to the game??!!!??!!) my backyards, and the host of other things that people have suggested here and on other threads in the past.
I’ve heard another forumite use the saying “money follows management” – I believe this is from Steve and Dave. It’s so true, and it goes hand in hand with you sometimes “need to spend money to make money” Put these together, manage the money you spend really well to add value close to home, think laterally and you will end up with win win situations all round, happy wealthier you and family, happier tenants, happier bank manager etc etc etc.
Cheers
CD[smiling]CastleDreamer
i have an ip and need to up the rent in september 5 – 10 dollars, but not sure how to do it. the place is fully furnished (ie beds airconditioners, washingmachine,dryer etc), and in pretty good condition. its a 3 bedroom unit with ensuite and carport etc. the only thing i can think of is to give them a dvd player (selling at woolies for 80 dollars). what do you think? is there anything else i could do.
perhaps get the maintenance man in to fix up the little nicks and scratches.
what you would guys and girls do?
cheers
shaunLead, Follow or get out of the bloody way
Originally posted by SteveMcKnight:One person’s garage is another person’s carport
One person’s garage could be another person’s home!!
I’ve seen granny flat conversions, sleep outs and just 4th bedrooms.
Cheers
JeffHi Shaunwalker,
Easy…..just give them notice of intention (60 days here in Vic) to increase rent, then simply up it!!!!![thumbsup2]
DVD player????????? Why stop there????? Just tell them that if they pay an extra 100 dollars a week you’ll come along once a week and put on a show!!!!!! [drummer][guitar][jester]
Seriously, it sounds like they have it pretty good, the furniture you have provided is in good condition; I can’t see why you have supply their entertainment as well.
To me, as long as the tenants have the basic comforts like heating, cooling, carpets, wardrobe space, car space and so on……the rest is of little concern to me………they’re my tenants, not my kids!!!!
Cheers,
Jo
Hi Guys,
Do you think these ideas would work with adding a reverse cycle air con? House is in Coffs and has no heating or cooling.
RoboGreat thread Steve/all,
At the conference, one bit of advice that Dave gave me was that investing doesn’t have to mean buying another property. It can mean anything from paying down one’s mortgage to reducing a credit card debt. Sometimes it helps to look within every once and a while when searching for the elusive golden fleece.
Cheers,
Gatsby.I’ll have to get Dolf’s book out again. Off the top of my head, I remember the first of his 101 tips were adding a carport if there was no under cover storage, and turning an existing carport into a garage.
Bruce
Mooloolaba, QldHi all,
Two weeks ago on a trip to NZ, I decided to make an appt. and visit each of our tenants, even though we use PM’s.
They were all really excited to see me, and one even stayed home from work, just to meet me. (I don’t really know why, but it felt nice).
One of the tenants said that although she loved the house, that she felt she had to give notice to move out, because her toddler was running out onto the road too often.
I have agreed to put up a wooden fence at the front of the property, at a cost of only $5 per week to her. She was wrapped! It will cost me about $700, but I get my home improved, with no vacancies, and keep a happy and prompt paying tenant.
Don’t be afraid to actually SPEAK to your tenants, they don’t bite (well most don’t)…..[blush2]
Del
Originally posted by thefirstbruce:I’ll have to get Dolf’s book out again. Off the top of my head, I remember the first of his 101 tips were adding a carport if there was no under cover storage, and turning an existing carport into a garage.
Bruce
Mooloolaba, QldHi Bruce,
Smart man this Dolf; who is he????????
Jo
Look in http://www.dolfderoos.com
Cheers
Jeff
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