Affordable upgrades every landlord should invest in as vacancy rates rise
The rental market across Australia is shifting, and what was once a landlord’s dream with properties flying off the market is slowly turning into a renter’s game.
Across the country, vacancy rates are creeping up, rising by 0.3 percentage points over the past year alone.
That might not sound like much, but for landlords, it’s a signal: renters are beginning to have more choice, and standing out is now more essential than ever.
In major cities like Sydney and Melbourne, vacancies have jumped even more than the national average - up by 0.5%.
“A rise in vacancy is good news for renters as it means more choice,” says Anne Flaherty, Senior Economist, PropTrack.
“Properties listed for rent at the higher end are taking longer to lease out, with more renters looking to move into more affordable properties,” she says.
There are two main reasons for this shift: increased investor activity, which has resulted in more properties on the market, and rising cost-of-living pressures.
According to REA Group’s July Residential Audience Pulse, 41% of renters reported needing to downsize or move into shared housing to manage financial difficulties, while 22% are considering renting with others to reduce costs.
With renters now on the lookout and vacancy rates on the upward trend, property owners are realising they need to make their rentals more appealing and cost-effective to attract and retain tenants.
Here’s a list of some quick and affordable upgrades for landlords to keep properties in demand and avoid costly vacancies.
1. Revamp your space with a fresh coat of paint
A fresh coat of paint is the fastest facelift you can make to your house, and it’s one of the most cost-effective ways to instantly elevate your property’s appeal.
Neutral tones are the way to go: think soft whites, light greys, and warm beiges.
They not only make rooms feel brighter and more spacious but also appeal to a wider range of renters.
2. Stay cool and competitive
When it comes to upgrades that really catch renters’ attention, air conditioning is near the top of the list.
With each summer becoming hotter than the last, tenants are no longer just hoping for air conditioning—they’re expecting it.
When selecting a new system, prioritise brands with a track record of customer satisfaction.
Installing a quality system, like those from Mitsubishi Heavy Industries Air Conditioning (MHIAA), gives your property year-round appeal.
MHIAA has become the most independently awarded brand of air conditioners with over 20 accolades in Australia alone.
Tenants will appreciate the comfort in both the scorching summer heat and chilly winter nights.
Plus, MHIAA units are known for their energy efficiency, meaning tenants could enjoy lower utility bills - a big selling point in today’s market, where renters are increasingly cost-conscious.
3. Upgrade your flooring
Old, worn-out carpets are a turn-off for most renters, especially in a market where tenants have options.
Upgrading your flooring to something more durable and modern, like laminate or hybrid flooring, not only boosts the aesthetic appeal but also ensures the property is low maintenance.
Think of it this way: a quick flooring upgrade can give your rental property an entirely new feel.
And since vacancy rates in capital cities have climbed, every little detail matters.
4. Brighten up your space
Never underestimate the power of good lighting.
Replacing outdated light fixtures with modern, energy-efficient options like LED lighting can completely transform a space.
Not only do they look better, but they also save on electricity—something that tenants will definitely notice.
Adding a mix of ambient, task, and accent lighting can create a cosy, inviting environment that stands out in online listings and open inspections.
5. Boost your curb appeal
First impressions matter, especially when potential tenants are scrolling through listings or attending inspections.
A well-maintained exterior signals that the property is cared for, giving tenants confidence in the quality of the home.
Start with low-maintenance landscaping, like quality plants, to keep the yard looking fresh year-round without creating extra work for tenants.
Consider adding features like shade sails or a simple patio setup to enhance outdoor liveability.
Aussies love outdoor spaces, and even a modest investment in an inviting outdoor area can make your property stand out.
Whether it’s a small garden, a tidy backyard, or some outdoor seating, these enhancements not only improve the property’s aesthetics but also create a lifestyle appeal that draws tenants in.
*** Article written by realestate.com.au and Mitsubishi Heavy Industries Air-Conditioning
