If you have entered the property market, you want to make sure you get the most value from your rental properties. Keep reading to find out how.
It's not surprising the third quarter national rental vacancy rate of 2017 rose 0.7 points to 7.5 percent. Though many factors cause this trend, homeowners are not doing enough to attract tenants. Thankfully, some simple steps will raise the value of your rental properties.
People consider several factors before renting a place:
- Their budget
- The location
- Whether they have a roommate
- Their must-haves
- What they would be comfortable not having in the rental
The goal for the homeowner is to tick all these boxes to land high-paying tenants. Yet, to do this, the property must be appealing.
Read on to learn how to improve the value of your rental properties.
Boosting the Value of Your Rental Properties
Investing in rental properties supplements your income and boosts your financial future. It gives you income streams, tax benefits, retirement income, and possible housing loans.
It also helps you mitigate the risks of inflation.
As such, it is important to have your property in the best possible condition to attract renters. A major overhaul isn't necessary.
Here are some simple steps to help you.
Property owners sometimes change carpets or paint walls instead of cleaning the place first. Hiring cleaning professionals can make an area more pleasing.
These cleaners should wipe the walls, scrub the ceilings if need be, and remove carpet stains. Have them take the trash out and remove odors from the property.
Renters want to live in a clean place and are likely to pay more for the rental.
Repaint the Place
You can charge more money if you have a good-looking and well-maintained rental. Repainting can help you with that. The place will look brand new and you can use better colors than the previous ones.
If you are uncomfortable doing the designs, hire a professional interior design firm. Picking the right colors and style boosts the rental's perceived value.
Don't forget to paint the exterior.
Upgrade or Repair Fixtures, Kitchens, and Bathrooms
Quality workmanship sets apart high-end properties from the cheap ones. Make sure your properties have quality and working fixtures.
The door knobs, handles, and light fixtures should all be in working condition.
People notice the small things and these might put them off. They may wonder what else is not working well on the property.
If you have funds, make some changes to the kitchens and bathrooms. You could upgrade the flooring, sinks, countertops, and doors.
These changes make the place look modern and attractive.
Consider Adding Private Bathrooms
Not all rental properties have private bathrooms. Adding private bathrooms and toilets may seem expensive at first, but will be beneficial later. Wealthy tenants want places that are convenient and have privacy.
Market to Higher-Paying Tenants
You can decide to make your rentals attractive to a particular high-paying market.
For instance, college students may not be able to afford the high prices you want. Thus, you should market your rental to corporates who are working in the area.
Learn More About Real Estate
Getting more value from your rentals requires a bit of money, great designs, and a better market. Do the necessary repairs and renovate the area where possible.
Use a design firm to make the place look more appealing. Then, target the right tenants.
To learn more about real estate and design processes, contact us.