Maximise and comply!
Time flies when you’re a residential property investor. Before you know it you’ve fixed enough maintenance items to consider opening your own building company and then all of a sudden it’s time to advertise your property for the next wave of tenants. With that in mind, 2021 is seemingly not too far away. It’s already March after all! 2021 for residential landlords means the introduction of the long anticipated Healthy Homes Guarantee bill.
The primary focus of the bill is on heating insulation and ventilation compliance to ensure homes are better to live in. There will no doubt be many landlords who are anticipating some serious costs in order to bring their properties up to code, yet again. This for many landlords could be the final straw, with the frustration of consistent legislative changes incurring more and more cost every time. The good news is Tommy’s Property Management have seen this as an opportunity to start adding some value to your home! How? Well, we have partnered with Mitre 10 Crofton Downs to form a unique partnership that is exclusive to Tommy’s clients. Not only will this partnership add some serious value to your property but also make the worries of non-compliance a thing of the past.
No matter how long you have owned your property, it is very rare that there will not be an opportunity to add value. However, it just so happens that the main items that the homes guarantee bill focusses on are some of the key areas that you can always improve your property. Ventilation, drainage and moisture ingress could all be easily translated to bathrooms and kitchens and so thanks to the team at Mitre 10 Crofton Downs, we are now able to offer some tailored renovation options to both kitchen and bathroom areas at preferential pricing that will not only add significant value and longevity to your investment, but also tick all the boxes when it comes to compliance. The renovations come with extended warranty periods so you can rest assured that you will have a product you are able to confidently market for a premium price for the foreseeable future. Don’t believe us? Check out this case study below!
When we first introduced the offer exclusively to our clients, we were met with a three-bedroom, one bathroom property in Churton Park which had a list of deferred maintenance items. As part of Tommy’s policy to manage properties which are compliant, we suggested some renovations. The rent at the time was $430 per week. Through our partnership with Mitre 10 Crofton Downs, this particular landlord was able to renovate his house from top to toe for just under $35,000. Whilst this may seem like a sizable initial outlay, the landlord was able to increase his weekly rent by $250 and he now receives $780 per week from a property which is compliant and has a certificate issued by the Sustainability Trust. In turn, this gives him the green light for the healthy homes guarantee bill. By the time the bill is introduced in July 2021, the landlord will have had at least 2 years of the increased rent which totals an additional $13,000 of rental income a year. This is not to mention the fact that the market rent will be adjusted each year as part of his management agreement with Tommy’s when renewed each year. This means that not only when 2021 comes along will his home be compliant, but he will also have recovered almost all the cost of renovations and have added at least another 10 years of life to his investment property.
Of course, there are other benefits to renovating your property aside from just increasing the rent. The case highlighted could easily see the value of the home increase by upwards of $100,000 if they opted to sell. A small but completely project managed investment, has seen this particular landlord massively increase his financial position and opened up a wealth of opportunities, either for him to capitalise on the increased value of the property by selling, or leveraging and looking to add another property to the portfolio.
So, what does the deal involve? Well, if you are a client of Tommy’s Property Management, we’ll extend the exclusive and preferential pricing model we have through our partnership with Mitre 10 Crofton Downs to make sure that you can execute a cost effective and high quality renovation on areas of your home which may need to be upgraded in order to comply with the new bill. You’ll be kept in the loop every step of the way, and we’ll be able to forecast what your rental income might be before you do the renovation. Once the renovation is done, you’ll receive an up to date market appraisal both for the rental and sale of your home, along with some obligation free advice on what your next options might be.
If this sounds appealing, or you’re curious to find out more about whether your home is already Healthy Homes bill compliant, give us an obligation free call today on 04 381 8604.