Considering renovating the kitchen in your investment property? Before you do, have a read through our kitchen renovations rental property guide to ensure you get the most out of your investment.
Is a kitchen renovation worthwhile as an investor?
Wondering if renovating the kitchen in your investment property is worth it? There are several good reasons not to hold it off any longer…
Increases tenant appeal
Housing affordability has been a major issue in Melbourne for a while now—in fact, the price of a typical home in Melbourne has grown four times faster than wages over the last 40 years.
While it’s not great news for renters trying to purchase their first home, it is good news for landlords. It means there are plenty of renters out there willing to pay a lot to live in a great property they feel comfortable in—but to be able to charge a premium price for your property, it needs to be as appealing as possible.
A kitchen renovation is one of the most effective ways to increase the appeal of your property. Not only is it typically a central feature of the home where tenants will cook, relax and entertain, but it also makes a real statement about the style and status of the people that live there.
Investing in a beautifully appointed new kitchen will help to create more competition among applicants, giving you a larger pool of tenants to choose from, allowing you to charge a premium price, and even helping you justify incremental rental increases.
Adds value to the property
A kitchen renovation is one of the best ways to increase the value of your property. Depending on the type of property, a kitchen renovation even has the potential to add up to $100,000 to the value of a property.
While you may not have plans to sell the property anytime soon, it’s likely that the prospect of putting the property on the market will eventually roll around. When that time does arrive, you’ll want to have done everything you can to ensure you can achieve top dollar and generate the most out of your investment.
In the meantime, there’s also potential to use the additional equity generated from the property value increase that results from a kitchen renovation to finance other investment opportunities.
Provides tax benefits
Making improvements or renovations to your investment property also allows you to tap into valuable capital works deductions come tax time.
While the value of the deductions you can claim will depend on the type and total value of the renovations, it’s worthwhile having a chat with your accountant to see how you can benefit from renovating the kitchen in your rental property.
Essential features of a rental property kitchen renovation
When renovating the kitchen in your rental property, there are a few features you don’t want to forget to include:
- Loads of storage: A lack of storage is usually the number one bugbear for homeowners and renters alike. A kitchen renovation is your opportunity to address the problem once and for all by including plenty of cupboards, drawers and shelving where tenants can conveniently store everything away.
- Durable materials: Damage can be a major concern for landlords renting out their property. Opting for high-quality, durable materials, fittings and fixtures that will stand up to whatever tenants throw at them will preserve your kitchen and ensure it remains beautiful and functional for many years to come.
- Stylish finishes: Even though your tenants don’t own the property, it doesn’t mean they’re not house proud. Your tenants will value having a well-presented, stylish kitchen just as much as you would and it’s a sure-fire way to make your property more appealing and justify a higher rental price.
Planning and managing the kitchen renovation process
As an investor, you probably have enough on your plate and don’t want to dedicate the time and effort it takes to plan and manage the kitchen renovation process—that’s why you should entrust the experienced team at Mint Kitchens Group to manage the whole process for you.
We can recommend the optimal kitchen layout and design, suggest a range of stylish finish options, and take care of every stage of the renovation process for you so you can focus on other things. The result will be a premium quality kitchen that’s oozing with appeal and sure to attract the best quality tenants.