Holiday rental properties have the potential to bring in a significant income boost for investors. As a general rule of the thumb, the higher the tourism grade, the more lucrative the property becomes. In many cases, four and five star rentals are in high demand, especially within the international travel market. If you are targeting a higher calibre of guest, there are many upgrades that can drastically increase the value of your holiday rental.
From swimming pools to hot tubs; luxury en-suite bathrooms to contemporary kitchens, remodelling offers a way for savvy property investors to create inviting spaces that appeal to modern travellers.
Increasing the Value of Holiday Rental Properties
What upgrades are worth considering for holiday rental properties? The following will give you some inspiration…
- En-suite bathrooms. If your property does not already offer private bathrooms for each bedroom (or at the very least, the master bedroom), this should be your first upgrade. Private bathrooms add to the sense of luxury, giving your guests exclusive facilities that do not have to be shared. Depending on your budget and space requirements, you could opt for a small bathing area with free-standing tub separated by a room divider, or a full bathroom with bath, shower, toilet and basin.
- Swimming pool. This is often a make-or-break feature – especially during the hot summer months. With temperatures often reaching 30 degrees Celsius or higher in Cape Town, having somewhere for guests to cool down is essential. Properties with swimming pools almost always perform better, regardless of the size of the pool. A small plunge pool can be just as effective as an elaborate infinity pool.
- Master suites. An impressive master suite can be a major drawcard. Put yourself in your guest’s shoes for a moment… imagine a luxury suite that includes comfortable seating, television, fireplace, private bathroom, large bed, dressing area and other lavish touches. A spectacular one bedroom holiday home can be far more valuable than a cramped two bedroom property. Expanding the master suite and transforming it into an inviting oasis will enable you to target honeymooners and other luxury travel markets.
- Floors. Upgrading your floors to a contemporary option such as laminate or tile can be an excellent investment. This is particularly useful in older properties that may have mismatched floors from room to room. Carpeted floors pick up debris a lot easier and are harder to keep clean. Smooth laminate wood floors that create a seamless transition from each room will give the illusion of space and openness.
- Paint. Never underestimate the power of a fresh coat of paint. That’s not to say that you need to go wild with colour however. The best paint colours for holiday rental properties are neutral and subtle. Using a single colour throughout the property will make the property look larger. Lighter colours also add space.
- Kitchen. A freshly upgraded kitchen can also be a major selling point when it comes to holiday home rental properties. Whether you need to consider a full renovation to replace outdated cabinets and counters, or you simply need to resurface and paint, a modern kitchen allows guests to enjoy self-catering. Replacing old appliances can also increase the value of your property, while changing an old separate kitchen into an open-plan kitchen will help, too.
- Lighting. It may seem like a small detail, but lighting can make a big difference. Harsh lighting does not create much of a welcoming sense, but soft lighting does. Well-lit rooms photograph better and attract guests more easily.
- Patio. Does your property have a space for guests to relax outdoors? Regardless of how much space you have to work with, patio upgrades will help increase the value of your property. Consider adding a built-in BBQ, a Jacuzzi, a deck, a covered area and a paved area that flows to the pool.
- Heating and cooling. Another way to increase the value of holiday rental properties is to install heating and cooling. The former can include fireplaces in key rooms within the property. The latter can include a top of the range air-conditioning system as well as overhead fans.
There is no doubt that holiday rentals are a good investment. Like any other investment however, protecting and enhancing your investment ensures that you reap the most rewards. Sometimes, even the simplest upgrades can make the difference between a two star property and a three star property.
Interested in learning more about enhancing the appeal of your property? Working with an experienced holiday rental property manager is without a doubt the best way to enjoy maximum return on your investment. A good property manager will not only actively market your property across multiple channels – they will also develop custom strategies to help you maximise bookings throughout the year.
To learn more about optimising holiday rental properties for growth, contact Totalstay today.