Smart upgrades for investors looking to maximise value
In today’s competitive rental market, investors and homeowners alike are searching for ways to make their properties stand out — and earn more. One of the most effective ways to increase rental yield without buying a new property is through a well-planned home extension.
Whether it’s adding an extra bedroom, extending a living space, or building a studio out back, strategic extensions can significantly enhance your rental return. But not all upgrades are created equal. It’s not just about more space — it’s about usable, desirable space that improves the livability of your home and appeals to quality tenants.
At Radevo Living, we specialise in end-to-end extensions and renovations designed around lifestyle and investment. If you’re considering expanding your property footprint, here’s how to do it the right way — and boost your rental income in the process.
Why Extensions Work for Rental Uplift
More space almost always translates to more value — especially in high-demand markets like Melbourne. Tenants are willing to pay more for extra bedrooms, upgraded amenities, or flexible living areas that suit modern needs like working from home or multi-generational living.
But beyond just square metres, extensions let you reposition your property. You’re no longer competing at the entry-level end of the market — you’re offering a premium product that commands a higher weekly rent and attracts longer tenancies.
Popular Extension Types That Deliver High ROI
Not every extension guarantees a strong return. The key is choosing the right kind of space to add — based on what’s in demand in your area and what will elevate the property without overcapitalising.
- Extra Bedroom or Guest Suite
Adding a third or fourth bedroom instantly increases the appeal to families, flatmates or professionals seeking shared accommodation. In many Melbourne suburbs, this can mean $100–$200 more in weekly rent.
Pro tip: if space allows, consider adding a bedroom with an ensuite or a separate entrance. Dual-key style setups are increasingly attractive to renters who want privacy and flexibility.
- Second Living Area or Open-Plan Extension
An open-plan living, kitchen, and dining space can make an older home feel modern — and more spacious. These upgrades appeal to young families and professionals alike, offering the kind of lifestyle layout tenants are looking for.
Extending your living space onto a deck or covered alfresco area can further boost desirability without dramatically increasing build costs.
- Studio, Granny Flat or Detached Unit
If your land size allows, a separate studio or self-contained dwelling can be a goldmine. These additions can function as home offices, teenage retreats or even micro-rentals — generating dual income from a single property.
Just make sure to factor in local council regulations and planning requirements (which Radevo Living can help with from start to finish).
Think Like a Tenant: Function, Storage, and Natural Light
When extending your property with rental return in mind, design decisions should be made from the tenant’s perspective. Think functionality, storage, flow and light.
Natural light enhances space without increasing costs.
Integrated storage (built-ins, linen closets, cabinetry) reduces clutter and adds long-term appeal.
Smart layouts that allow for privacy, quiet workspaces, or indoor-outdoor living cater to modern needs.
Our design team works with landlords to ensure every added square metre is optimised — not just for style, but for real-world use.
Planning, Permits and Maximising Your Budget
One of the biggest mistakes investors make is underestimating the complexity of extensions. Council approvals, setbacks, boundary rules, drainage, and structural integrity all play a role in what you can build — and how quickly you can build it.
At Radevo, we offer full-service support, including:
Feasibility assessment based on your block and suburb
Transparent fixed pricing to protect your budget
Management of all council permits and timelines
A dedicated project lead from concept to completion
This means no surprise costs, no tradie coordination, and no passing the buck — just one expert team delivering a compliant, high-quality extension that’s built to last.
How Much Can You Increase Your Rental Return?
Rental uplift depends on your suburb, property type, and what kind of tenants you’re targeting. But here are some real-world examples from across Melbourne:
3-bed to 4-bed upgrade: +$120–$180/week in suburbs like Glen Waverley or Reservoir
Adding a second bathroom: +$80–$100/week in family-friendly areas
Granny flat or detached studio: $250–$400/week as a standalone rental
Open-plan kitchen/living extension: Attracts longer tenancies, lower vacancy rates, and fewer maintenance issues
In some cases, a smart $100K extension can generate an additional $8K–$15K in annual rent — paying itself off in under a decade while boosting long-term property value.
Boosting Value Beyond Rent: Capital Growth & Equity
The benefits of an extension aren’t limited to rental yield. Increasing your floor plan also boosts your property’s market value and unlocks equity for future investments or refinancing. This gives you more leverage — whether you’re looking to expand your portfolio or renovate another part of your home.
Banks also view well-documented, council-approved extensions favourably during valuation. This is where working with a trusted builder like Radevo gives you a strategic edge — every detail is professionally managed and verifiable.
A Smarter Way to Renovate for Rental Returns
At Radevo Living, we don’t just build — we solve problems and unlock value. For investors, that means delivering tailored home extensions that suit your budget, location and long-term goals.
We take full accountability for the project, so you’re never chasing tradies or dealing with permit confusion. Our designs are purpose-built for function, future returns and tenant appeal — delivered with a premium finish and total peace of mind.
Ready to Grow Your Rental Income with a Strategic Extension?
Book a free property consultation with our team and discover what’s possible with your current home. Whether you’re extending to rent, sell, or revalue — we’ll help you get the most from every square metre.
