All Topics / Value Adding / renovating for rents, renovating to sell – different priorities?

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  • Profile photo of carlincarlin
    Join Date: 2005
    Post Count: 211

    Hi All,

    I read in a recent API mag advice re-the best things to do to achieve more rent.

    Would you do different things to achieve a good price if you planned to sell the place?

    I'm keen to know people's views on the differences and the similarities in the approaches you need to take for these two different goals – ie: achieving higher rent or achieving a higher sale price. In other words, do different things appeal to renters than to buyers?


    Profile photo of KuadeKuade
    Join Date: 2006
    Post Count: 84

    Your original post was long ago, but thought I'd reply anyway.

    The answer is yes. You are appealing to two totally different markets. The home buyer and the renter both have different requirements and expectations, though they're similar if you're targeting the same category or market. As with any business you need to identify where you're money will come from and how you can get the maximum money back from what you put in. You really need to decide what you're planning on doing first, before you even purchase.

    If your goal is to have a high profile rental property for the ex-pat or interstate professional, you do one thing (best of everything), if it's to rent to a small family, you do something else (nice yard, clean and functional interrior, close to schools), or if it's for the young professional it's different again (low maintenance, high quality finishings, close to restaurants etc) or for students you need a completely different strategy (tidy, budget fittings, budget rent, close to uni's and tafe and near to transport).

    As for selling, it's another ball game again. You have retirees, empty nesters, families, young families, first home buyers, and other investors.

    Profile photo of BanjoSmythBanjoSmyth
    Join Date: 2007
    Post Count: 44

    Hi guys

    I think most things are pretty similar.

    The main differences would be bigger things that don't necessarily affect renters.

    eg.  structural, wear and tear on building, gutters, decking etc.

    On one hand its easier to please buyers because they  know that the can change it if they want to. 

    But at the moment renters can't really be to fussy :)


    Banjo Smyth

    Profile photo of GlennStakerGlennStaker
    Join Date: 2005
    Post Count: 23

    i agree with banjo
    i tend to think that most of the stuff you do is fairly similar…..but you do need to have your target market in mind when renovating to sell or rent out…..
    i may cut some corners on some of the finer finishing touches if the place is to be rented. A renter wouldn't put near as much time into inspecting the place and it's structural elements as a buyer………a renter will notice whether the stove is stainless steel or not but isn't going to inspect the slight plaster crack in the roof or the water damage at the back of the cupboard.

    thats my opinion anyways :)

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