When you’re a landlord or property investor, you’ve got one main goal - to maximise returns without unnecessary risk.
The reality? Many New Zealand rental properties are underperforming simply because they’re not being optimised for today’s market. At Property Brokers, we’re sitting on a goldmine of information about the properties we manage - and when we combine this data with the renovation expertise of property investment coach Ilse Wolfe, we uncover opportunities that can rapidly boost rental income and long-term value.
“Our rent roll is full of older stock, and there’s huge potential to improve cash flow for landlords and investors,” says David Faulkner, General Manager of Property Management.
We work with Velocity, a leading automated rental evaluation platform, to track actual rents versus potential market rates. It blends market data with our own records to produce accurate rental assessments, showing exactly where a property sits in the market.
The insight is powerful - it tells us where rents are lagging and helps identify properties that could benefit from targeted upgrades.
Ilse Wolfe has been helping investors unlock hidden value in existing properties for nearly 20 years. Her approach focuses on older homes - often from the 1950s to 1970s - that can be cosmetically upgraded to perform like new builds, but at a fraction of the purchase price.
“There’s a ceiling on what tenants will pay for a three-bedroom house in a given area,” says Ilse. “But if you can cost-effectively add a fourth bedroom - without major structural work - you can push the rental income higher almost overnight.”
It’s a strategy backed by numbers. Using appraisal data, Ilse has helped landlords transform an average-performing rental into a market leader in just six to eight weeks, often by making smart, cosmetic changes like adding a non-structural wall to create an extra bedroom.
Not every property has the space to add another bedroom inside, but there are other ways to increase earning potential. For example, a detached 10–30 square metre cabin can be installed without building consent (provided you follow specific government guidelines).
“These cabins are perfect for creating an extra room for a home office, studio, or additional family member,” Ilse explains. “If your property manager is confident the market will support a rent increase for that extra space, it can be a great return on investment.”
One recent project shows just how powerful this approach can be.
An investor purchased a block of 10 one-bedroom units just outside Palmerston North for $825,000. Working alongside Property Brokers and Ilse’s team, they invested around $440,000 in a targeted renovation- updating kitchens, bathrooms, exteriors, and fencing.
The result?
- Rental income more than doubled while keeping the units affordable
- Gross yield hit an impressive 15%
- A registered valuation came in at $2 million - an $800,000 lift in equity
All of this was achieved in about 10 weeks, with the Property Brokers team managing tenant transitions and ensuring every upgrade matched local rental demand.
For years, investors have been drawn to new builds for their low maintenance and capital growth potential. But with high interest rates and tighter lending conditions, cash flow is back in focus.
Older properties offer the ability to create differentiation and add value - something you can’t always do in a development where every townhouse is identical to the one next door.
By targeting the right improvements for the right tenant profile, you can increase both rent and property value, while keeping the home competitive in the local market.
If you’re wondering how your rental stacks up against the market, start with the data. Property Brokers’ property managers can give you a detailed rental appraisal powered by Velocity’s insights - highlighting where you may be leaving money on the table.
From there, Ilse and our team can help you explore renovation or reconfiguration options that make financial sense for your situation, whether that’s adding a bedroom, installing a cabin, or tackling a multi-unit upgrade.
The goal is simple - create a property that earns more, grows in value, and supports your long-term wealth.
- This blog is a snapshot of insights shared in our revive and reinvest recent webinar - click through to watch the full session and explore all the strategies in detail.
Your gateway to invaluable insights and tailored advice!
Book a complimentary 15-minute consultation with Ilse Wolfe. As a seasoned expert in real estate, Ilse brings knowledge and personalised strategies to help you confidently navigate the market. Whether you're buying, selling, or simply exploring your options, this free session is your gateway to invaluable insights and tailored advice.
