W

hen one of our long-term clients approached us with the goal of increasing the rental income across several of their investment properties, we knew it was an opportunity to make a significant impact.

These projects would not only improve the financial returns but also enhance the quality of life for tenants. Two properties, in particular, stood out during this journey: a family home in Wilton and a two-flat dwelling in Khandallah.

Wilton Home

The first property, in the western Wellington suburb of Wilton, was a large, family-style home spanning 130sqm, with four bedrooms, 1.5 bathrooms, and a single garage. Unfortunately, the property had been neglected for years, leaving it tired and in desperate need of repair.

The home, which had been rented for just $400 per week, was far below its potential. The tenants had been living there for over a decade, and regular rental reviews had not been conducted leading to a substantial gap between the actual rent and current market rates.

Recognising the need for a complete transformation, we mapped out a comprehensive renovation plan. The project included a brand-new kitchen and bathroom, fresh carpeting, a full repaint, tree removal and the installation of a new boundary fence.

Working closely with the owner, we sourced all kitchen and bathroom fixtures from Mitre 10’s range, ensuring quality and style.

In terms of flooring, we opted for a blend of new carpet in the living areas and bedrooms, while restoring the original wooden floorboards in the kitchen and bathrooms. The polished floors added a touch of elegance and character that truly brought the home to life.

To ensure the property met modern standards, we also upgraded the heating system and installed new insulation throughout.

The results were nothing short of impressive. Post-renovation, the property was re-leased for $950 per week, a remarkable increase of $550 per week. This boost in rental income translates to an additional $29,000 annually for the owner.

With a total renovation cost of $112,000, the project will have paid for itself in just under four years. The capital value of the property has also likely increased, putting the owner in a strong position should they choose to sell in the future.

This project is a testament to the value of investing in your properties, showing how a well-executed renovation can transform a tired asset into a thriving, income-generating home.

Khandallah Flat

The second property, located in Khandallah, was a two-flat dwelling that had already seen a successful transformation in the upstairs unit thanks to a full renovation we oversaw a few years ago.

However, the lower flat, home to an elderly tenant, presented a unique challenge. Access to this unit had always been less than ideal: a steep concrete staircase with an old, rickety metal handrail that had long outlived its usefulness. It was clear this setup was not only inconvenient but had become a significant health and safety concern.

Recognising the need for urgent action, we embarked on a project to rebuild the staircase. But we didn’t stop there. We saw an opportunity to enhance the tenant’s quality of life by improving the indoor-outdoor flow, something the flat was sorely lacking. To ensure durability and quality, we chose to construct a new deck and stairs using treated New Zealand pine. This material not only provides a sturdy and safe structure but also aligns with our commitment to using locally sourced products wherever possible.

As you can see from the before and after photos, the original entrance was far from inviting. The new, wider steps, have transformed the climb, making it much easier and safer for the tenant, minimising the risk of slips and falls.

Improvements like these are essential. While it’s tempting to focus on the more exciting aspects of renovation, like installing a new kitchen or opening up living spaces, it’s critical not to overlook the importance of essential maintenance.

Looking ahead, we plan to fully renovate inside the lower flat next year. However, we felt it was crucial to address the external issues first. After all, there’s little point in creating a beautiful interior if access and street presentation are neglected.

When renovating, getting the order of work right is key to maximising the property’s value and its liveability.

Harrison Vaughan is passionate about looking after both owner and resident. Having been involved in the New Zealand Property Industry since he was 20 years old, Harrison’s dedication to all clients shows through in the many awards won by Tommy’s.

Find Harrison and his team at www.tommysrentals.co.nz