More Value = More Rent

Owning rental property in New Zealand provides great opportunities for growth, but maximizing your rental income often requires taking action to add value to your property. Whether your investment is in Auckland, Wellington, Christchurch, or elsewhere, here are some proven strategies to enhance your property’s appeal and command higher rent.

One of the best ways to increase your property’s rental value is by adding extra bedrooms—and crucially, matching the number of bathrooms to the number of bedrooms. Properties with multiple bathrooms, especially those that align with bedroom count, are highly attractive to house-sharing groups, such as professionals or students. With more bathrooms, you can justify significantly higher rent as it makes the space more livable and comfortable for multiple tenants.

Consider these ideas:

• Add ensuite bathrooms: Adding a bathroom to a master bedroom can create more privacy, allowing you to market the space to higher-paying tenants.
• Convert existing spaces: Converting unused areas like garages, attics, or basements into both bedrooms and bathrooms can appeal to larger groups who value private facilities.
• Renovate strategically: If you already have extra space, consider installing a bathroom alongside each bedroom, catering specifically to group living arrangements. This setup can command a higher rent per tenant and reduce wear and tear on shared facilities.

Matching bedroom and bathroom counts is a major selling point and an easy way to differentiate your property from others on the rental market.

Updating kitchens and bathrooms is one of the most effective ways to increase rental appeal and justify a higher price. Renters want functional, modern spaces, and they are willing to pay more for them. Here’s how to approach it:

• Kitchen upgrades: Tenants love modern, open-plan kitchens with contemporary appliances, durable countertops, and plenty of storage. If you renovate the kitchen, you can increase rent while ensuring the property remains desirable for years to come.
• Bathroom remodels: Upgrading bathrooms with new fixtures, better lighting, and modern tiling instantly elevates the space. If adding another full bathroom isn’t an option, consider improving the ones you have by adding stylish, water-efficient fixtures.

Well-designed and modernized kitchens and bathrooms are a major draw for tenants, allowing you to raise rents accordingly.

Enhancing natural light and maximizing your property’s view can be game-changing. New Zealand’s landscapes and outdoor spaces offer ample opportunity to increase your property’s value by capitalizing on light and outlook.

• Open-plan living: Remove unnecessary walls to create larger, open spaces that allow more light to flow through the home.
• Install larger windows or sliding doors: Consider floor-to-ceiling windows, sliding doors, or bi-fold doors that open up to outdoor areas. This not only brings in more light but also makes the space feel more expansive and inviting.
• Outdoor living: Add or upgrade decks, patios, or balconies. Tenants, especially in family or group arrangements, appreciate outdoor spaces for relaxation and entertaining.

An open, light-filled property with good outdoor flow can fetch a premium in rent, especially in sunny and scenic areas.

Tenants are increasingly looking for homes that are warm, dry, and energy-efficient. Investing in quality insulation and modern heating systems will not only meet building code requirements but also help you demand higher rents by providing a more comfortable living space.

• Improve insulation: Especially in older properties, upgrading ceiling, wall, and floor insulation can dramatically improve tenant comfort.
• Energy-efficient heating: Install heat pumps or other efficient heating solutions to keep the property warm during colder months, which tenants in New Zealand appreciate. This can also reduce energy costs, making the property more attractive.

Not only will these improvements make the property more desirable, but energy-efficient homes are increasingly in demand, allowing you to set higher rent prices.

Security is a priority for most renters, particularly those living in group households. By enhancing your property’s security, you can attract better tenants and charge more rent. Consider:

• Install smart locks and security systems: Tenants value secure entry points, and smart home features such as app-controlled locks and alarms are becoming popular.
• Exterior lighting: Add motion-sensor lighting to entrances and driveways for improved safety.
• Fencing and gates: Well-designed fences or gates add privacy and security, which are appealing to families or house-sharing groups.

These improvements not only increase tenant satisfaction but also justify a higher rental price.

In some locations, particularly in tourist hotspots, short-term rentals (like Airbnb) can offer significantly higher returns than long-term leases. However, they do require more hands-on management. Another option is subdividing larger properties to rent to multiple tenants at once.

• Short-term rentals: If your property is in a high-demand area, consider converting it to a short-term rental. This can generate higher income, especially during peak travel seasons.
• Subdivide for multiple tenants: If you have a larger home, consider splitting it into smaller units or renting separate floors to different groups. Properties that are equipped with multiple bathrooms and kitchenettes lend themselves well to this model.

This approach can result in dual-income streams from a single property, making the investment even more lucrative.

First impressions matter, and a tidy, attractive exterior can significantly raise the perceived value of your property. To attract higher-paying tenants, consider:

• Exterior painting: A fresh coat of paint can instantly modernise the look of your property.
• Low-maintenance landscaping: Tidy gardens, well-kept lawns, and simple outdoor decor can greatly enhance curb appeal.
• Driveways and fencing: Upgrading your driveway and fencing can improve the property’s privacy and safety, which are key selling points for house-sharing groups or families.

By making targeted improvements like adding rooms, matching the number of bathrooms to bedrooms, upgrading kitchens and bathrooms, and improving the property’s aspect, you can attract higher-paying tenants and increase your rental income. If you’re ready to make some changes, start with the options that offer the best return for your investment.

Have any questions or need advice on your specific property? We’re here to help! Reach out to us for personalised recommendations and guidance to make the most of your property investment.