Ways to Improve the Value of Your Rental Property
“The major fortunes in America have been made in land.” John D. Rockefeller
It is well-known within the business community that real estate rental business is evergreen. It is not a bubble, like crypto-currencies, that could burst suddenly, leaving investors in disarray and shock. Instead, real estate is one of the most profitable businesses and has been for a very long time. As such, it makes sense for investors to dive into this business and try their luck. During the time you own a rental property, you can expect its value to increase. However, there are ways to improve the value of your rental property which we will share with you.
Why property value is important?
The primary concern when renting out a property is its value. As a rental property owner, you want to rent it out at the highest possible price. This can only be possible if you use all your resources wisely to make the most out of your rental property. If you keep your rental property looking new, you may end up improving the value of your rental property more than it would generally be in the market.
This whole process may be draining, and at some point, you may wonder if it would even be worth it in the end. In times like that, you need to be resilient and remember that every little upgrade will increase the dollar value of your rental property.
Now you may be wondering what steps to take that would actually improve and add value to your rental property – that is exactly what we are going to find out next.
How to improve the value of your rental property
It does not take much to maximize your rental property’s value. In fact, any good self-manager will include these following items on their “To-Do” list! You want to attract tenants to your rental property, learn what tenants value.
1. Improve your yard
People say the first impression is the last impression. In the case of your rental property, yards make up that first impression. It is one of the first things that people notice in a rental property. For this reason, you should make sure it leaves a lasting impression on your potential tenants. Keep it green and colorful. Maintain the length of the grass. Remove any dead trees or dying flowers. In short, make your yard aesthetically pleasing on the outside. No matter how beautiful your rental property is on the inside, no one wants to walk through a mess to the front door.
Expected cost: $0 – $300
2. Decorate the entryway
Potential tenants will notice early while visiting your rental property. Make this experience worthwhile! A fresh, welcome mat will leave a lasting impression. You can also hang baskets and pots of plants near the front door. Also, focus on the front door itself. Make sure it is free of any mechanical problems such as squeaky noises or a faulty lock. Obviously, it should look good as well.
Remember – Your new renters will likely take a photo in front of this door when they move in. Make it look photo-worthy!
Expected cost: $0 – $100
3. Add a fresh coat of paint
This is a frequently required maintenance item on any property, but especially rental properties. It can go a long way in building up a positive impression. A freshly painted rental property has a high return on investment for improving rent. While this is a mostly low-cost way of improving the value of your rental property, do not get carried away with cutting costs. Make sure that you use quality paints and hire a professional if you cannot carry out the task. Make sure to save the paint codes so you can easily re-order at HomeDepot or Lowes.
Expected cost: $35 – $400
4. Keep the carpets clean and presentable
You likely have carpet in parts of your rental property. While this is supposed to be a long-term investment, it is necessary to keep it maintained. Regular cleaning of the carpet is required, preferably via a steam clean. The carpet should not remind the new tenants that someone else had used it before them. Tenants do not like to think about other people living in their new rental home, especially if they had pets or were smokers.
You can get around this task by requiring all tenants to clean the carpet after moving out or even when renewing their annual lease!
Expected cost: $40 – $200
5. Fix your appliances
Once the former tenants have left, there may be a few problems with the appliances in your rental property. Fix all these issues before the new tenants move in. If not, they will come to you with complaints, making a bad impression on them. You may think, “Well they already moved in. What’s the big deal?”
Think about it. This tenant will need to renew their lease or move out. Leaving them with a bad taste will only spur them to move out as quickly as possible.
Expected cost: $50 – $1,000
6. Pressure wash the exterior of the rental property
This is one of the most overlooked aspects of increasing the value of your rental property. Pressure washing is cost-effective and depending on how frequently it is used, can drastically change the look of the front of your rental property. You can rent a washer or hire a low-cost contractor to do it for you. Either way, you will see a night and day difference after cleaning the side of your house and walkways.
Expected cost: $80 – $200
7. Fix the drains
Sanitary issues are usually overlooked by self-managers, and they create bad impressions on potential tenants. Therefore, it is vital to check your rental property’s drains and fix them if needed. It’s easier to fix plumbing problems now instead of at midnight when the tenant calls you with a flooded rental property.
Expected cost: $0 – $150
8. Improve the lighting
A well-lit house can make a world of difference in how a person feels inside the property. A few extra lights in each room or replacing the smaller lights with more powerful ones can drastically improve the lighting of the entire house, making it feel more welcoming. Look at buying accent lights or bulbs that provide more warmth to the home. Make the rental property feel like a home, not a long-term hotel room.
Expected cost: $15 – $150
Wrapping Up How To Improve The Value of Your Rental Property
In conclusion, to improve the value of your rental property does not take huge amounts of cash. Instead, you need to make tweaks and fixes in the right places, especially in areas where tenants are most likely to look. After making these improvements, the value of your rental property and rent should increase.
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