Increasing the value of your rental property provides a number of different benefits. You’ll be able to earn higher rents, you’ll attract better tenants, and once it’s time to sell, you’ll earn more on the sales price. There’s a lot of potential in your real estate investment, and you want to make sure you’re using all of it.
To raise your rental value, you have to attract the best tenants. And, high-quality tenants in California are looking for well-maintained homes in good neighborhoods. While there isn’t much you can do about your location or the size of your home, you can take matters into your own hands when it comes to property condition. Upgrading the condition of your investment property is the fastest and easiest way to increase its rental value.
There are other things you can do, too, and we’re exploring several different strategies right here. Try these tips and watch how you earn more and attract a larger pool of tenants.
Create Curb Appeal that Sells Your Rental Home
Prospective tenants are going to form an immediate opinion about whether they want to rent your home and how much they’d be willing to pay to rent your home when they approach your property from the street. Make sure the outside of the home or building accurately reflects the inside. Give those tenants a reason to come inside.
Curb appeal is your first impression. Increase your rental property value with:
- A good power washing.
- Fresh paint, if not on the entire property, then at least on the front door or the trim.
- A well-mowed lawn.
- Bushes and trees trimmed away from windows, doors, and the roof.
- An entryway that looks inviting and attractive. Plant some bright flowers near the door and make sure the exterior lighting is adequate.
When you take care of the curb appeal, you get cosmetic points which can translate into more dollars.
Upgrade and Update Key Points in Your Property
Renovations are expensive, but you don’t have to go too far into the rehab rabbit hole to get some great value from the investment you make in your property. Good tenants are willing to pay higher rents when your property stands out in a crowded rental market. Here are some of the most cost-effective improvements and upgrades you can make when you’re trying to raise the rental value of your property.
- Kitchen Counters and Cabinets
The kitchen is perhaps the most important part of a rental home.
It’s where your tenants are likely to gather the most. They’ll feed families, have coffee, and spend a significant amount of time in the kitchen. So, think about the changes you can make to make your kitchen more attractive and functional.
Appliances, for example, are a big deal. Consider replacing any appliances that are old, worn, and inefficient. Upgrade to energy-efficient models that not only look great but keep utility bills in check. Counters and cabinets are also likely to provide an excellent chance to make the kitchen more attractive. Consider backsplash behind the stove or the sink. Upgrade your hardware on drawers and cupboards. Put in new faucets and drawer pulls.
- Think about Hard Surface Flooring
New carpet can be difficult to clean and maintain. A good way to increase your rental value and make your property more manageable is by tearing up the old carpet and installing hard surface flooring. Hardwoods would be great, but they can also be expensive. You don’t need ceramic tile in a rental property, either. Instead, consider laminate flooring. There are faux hardwoods out there that look very much like the real thing. These floors are durable and easy to clean. Your tenants will appreciate them, and you won’t have to spend as much time and money maintaining them as you do with carpet.
Carpet is difficult, especially if you have a tenant with pets. Dander and dust can get caught in the carpet fibers. Dogs and cats will track everything through the carpet. You’ll have to clean and potentially replace carpet during every turnover. Invest in a healthier alternative – hard floors.
- Better Rental Home Security and Safety
Safety and security is becoming increasingly important to tenants. When you offer a rental property with these types of amenities, you can expect to bring in more rent and attract better tenants.
- Install a security system. This can be expensive to pay for every month, but you can simply have it installed and available, and your tenants will have the option of activating it. If tenants choose to have it, you won’t have to pay for it, but you know they’ll feel safer. And, you’ll have the system available to you if you decide to activate it during periods of vacancy.
- Video doorbells. Technology is allowing for a lot of fantastic amenities and features, even in rental homes. Video doorbells fall into that tech category, and they’re extremely popular, especially among single-family homes in residential neighborhoods. Tenants can see who is at the front door and watch as their packages are delivered. Some models even record a video of who comes and goes. This investment will be attractive to tenants, and you’ll be able to see anyone who approaches your property.
- High quality exterior lighting. Consider motion-detector lights, especially on garages and any outbuildings like sheds.
Protecting your property and your tenants is a good investment and will increase the value of your rental home. Talk to your insurance agent about these amenities you’re providing because the cost of your premium could be reduced when you make a few improvements.
Invest in Energy Efficiency
How green is your home?
It’s a good question, because environmental sustainability is becoming increasingly important to tenants, and if you can show them that your home makes the best use of sustainable resources, you’re going to be able to charge more and attract excellent renters.
Reducing waste is becoming more important than ever for modern tenants. It can also keep your long term costs down. So, invest in smart home devices that help you regulate the amount of energy that’s being used in your rental unit or building.
Smart thermostats are especially attractive. Tenants can better control their heating and cooling settings, depending on the time of day and whether anyone is home. Upgrading your light bulbs and your appliances will also make your property more valuable. Appliances can be timed to turn on at times that general energy usage is the lowest.
Provide a Pet-Friendly Rental Home
You’ll earn more money on your rental property if you allow pets. We understand the emotions that come with pets – many tenants see them as part of the family. A lot of landlords don’t love the risk and liability that comes with allowing pets. However, the bottom line is pretty clear: it’s barkingly good for your own bottom line.
Look at any statistical study, and you’ll learn that more than half of the tenants looking for a rental home have at least one pet. So, by making your rental property pet-friendly, you’re providing more than an appreciated amenity; you’re giving those pet owners an incentive to consider your home over those that may be unwelcoming to dogs and cats.
Allowing pets doesn’t cost you any money. While there are always risks of property damage and extra cleaning that may be needed, you’ll have an easy enough time mitigating those risks with pet fees and pet rent. We invite you to think of allowing pets as perhaps the most affordable amenity or upgrade you can provide in the quest to earn more on your property.
Here’s how pet-friendly properties earn more in the short and long term:
- There’s a lower vacancy period when you rent out pet-friendly properties. You have a larger pool of tenants, so your home rents faster. You won’t have to wait around for that well-qualified tenant who doesn’t happen to have a pet.
- You can charge a pet fee. This is a non-refundable fee that’s usually $200 or $300 per pet.
- You can charge pet rent. This is an additional $25 – $50 per month, per pet.
- You’ll face less turnover. Pet owning tenants are more likely to renew their lease agreements. They don’t want to take on the work of finding yet another pet-friendly rental home, and they don’t want the expensive of paying yet another pet fee. If they’re having a good experience, they’ll stay with you.
Reduce your risk by keeping a strict pet policy that requires vaccinations and flea treatments. Be clear about how many pets you’ll allow, what sizes they can be, and how many tenants may move in with. The pet policy should include how you expect your tenants to care for and control their pets. Then, you can have a relatively low-risk tenancy with a lot of extra income because you’re renting out a pet-friendly home.
These are a few of the most obvious ways to increase your rental property’s value. They’re also very general. If you’d like some specific tips that will work especially well for your own rental property, contact us at Real Property Management Choice. We’d be happy to evaluate where you are currently, and where you have the potential to go.
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