Inner-city landlords should consider converting extra floor space, such as walk-in wardrobes into bathrooms to earn higher rents and increase property values by tens of thousands of dollars.
According to research from property valuation firm Opteon, converting a walk-in robe to a second bathroom can boost an apartment’s value by $20,000 to $30,000.
An additional bathroom is also likely to expand the pool of renters interested in the property and can demand a premium rent, according to Opteon Victoria central regional manager Scott Chapman.
“For the right floor plan, we would expect to see an increase in both the value and rent,” he said.
Mr Chapman said investors seeking to undertake renovations do not always know where to start.
“This type of research is invaluable for inner-city apartment owners who want to improve the value of their property but don’t necessarily know where to begin,” he said.
Opteon's research centered on inner Melbourne and took into account views, elevation and sales timing.