In London, intense competition between landlords for tenants has driven rent levels down for most properties. However, if a property is refurbished to a high standard, a landlord can increase its rental value by as much as 50 per cent. Resale values can be lifted by a similar amount.
'Based on examples of works that we have undertaken to completely refurbish properties, the rents achieved can increase anywhere from 25 per cent to 50 per cent depending on the level of specification,' said Jane Ingram, national head of lettings at estate agency Savills.
Alan Waxman, managing director of developer Landmass London, advised landlords to create a smart, modern look. 'For rental properties, the trick is to furnish it as if it's a hotel,' he said. 'It's best to keep the decor neutral to attract tenants. With resale properties, you also need to offer a bit of a wow factor, so you make the property stand out from others and encourage a transition from a practical purchase to an emotional one. This can be done by introducing some colour, but don't go over the top - a signature wall is a safer bet than painting a room one colour, as you may otherwise run the risk of putting buyers off.'
Deciding on the target market for resale is important. To attract bachelors, the property ought to include ultra-modern furniture and some black in the colour scheme. But Waxman warned that this combination would put off families.
'Creating atmospheric rooms can help to encourage an emotional purchase, but the decor must reflect the intended use of the room.' he said. 'You can create cosy rooms with darker colours and relevant lighting, whilst you can make the more practical rooms light and airy, using light colours and mirrors.'
Homes for sale ought to be furnished even if being sold unfurnished, he advised. Furniture packages can be bought or hired from companies such as Landlord Furniture, which sell packs from GBP499 (HK$6,185).