Inexpensive Ways to Improve Rental Properties
Inexpensive Ways to Improve Rental Properties
Most of the time when people imagine the concept of real estate investment, they often picture glamorous, hugely profitable quick flips in which they get a great deal on an undervalued property and turn it around in a quick sale for a sizeable profit and little effort. We’re here to tell you that cases like this are the exception as opposed to the rule; often, real estate investments are careful, tedious processes that require extensive planning, discipline, and even decades before they turn a profit. One such example is the investor-turned-landlord, who buys property as a long-term investment and rents it out over the years as both a form of passive income and a way to wait out projected market changes. As we’ve discussed before, buy-and-hold properties, renting, and the role of a landlord comes with its own unique set of headaches and challenges, but is usually among the more rewarding and certain of investments when done properly.
A common concern for landlords is not only initially rehabbing their property in preparation for their first tenants, but continually renovating it over the years to increase its desirability in the face of market changes such as rent raises and increased competition in the local area. You can check out some recent blogs of ours for more tips and considerations for renting, but there are a few relatively inexpensive areas you as a landlord can focus on when it comes to increasing the desirability of your property and making it more competitive or cost-effective for you in allowing you to raise the rent.
The Living Area:
Think of the living area as the inside version of curb appeal. This is the first area that prospective tenants will see as they enter the home, and first impressions count. Socially, we tend to place a high importance on the entrances, communal, or living areas of our homes since this is where we entertain any guests, and most of us want the first impression any visitor may have to our living space to be favorable. For renters, they want to live in a place that feels as much like home as possible, and they tend to have short-term needs. Aesthetics, therefore, make a difference to them. This can be as simple as a fresh coat of paint, a few inexpensive fixtures like mirrors or stock paintings, or even a coffee table from IKEA, and generally speaking you can accomplish all of these for well under a few hundred dollars. Think of how you would sell a home to a buyer if you were a realtor; your potential tenant needs to be sold on the property, and as any real estate agent will tell you, appearances and the little things can make a big difference.
Flooring:
Flooring is a bit more extensive than a few touch-ups in one room in the house, but you have options to work with. We ordinarily would say that the appeal of carpet vs. hardwood (or linoleum imitation of such) doesn’t make a difference, but it does. In recent years homeowners and renters alike have gravitated towards hardwood floors for stylistic reasons and because of the ease with which they can be cleaned. For you as the landlord, hardwood or linoleum floors are the best bet. Not only do they have contemporary appeal, but they’re also practical for both you and the tenant as well. This isn’t to say you can’t rent a steam cleaner and get an existing carpet floor in tip-top shape, but you’ll likely find yourself doing it again and again between tenants, and the hassle and detriment to the property’s appeal over time just isn’t worth it. Increase your property’s value to renters and make your life easier at the same time by just switching to hardwood floors. Either way, the flooring should look as new and clean as possible.
Appliances:
Most of the time, appliances aren’t a deal breaker, but you’re going to want them to be or look as new as possible, because that holds a certain appeal to tenants. It’s going to be a balancing act between price and quality. Stainless steel appliances are nice, but may not work for every type of property. If you’ve got a good eye and a keen sense about you, secondhand appliances are often a fairly inexpensive, reliable, and look a lot younger for a better price. Again, there’s no reason to take an unnecessary risk; after all, what’s the point of getting a $90 clothes dryer that looks great but will break after two months? Remember: balance price and quality, but appliances are worth consideration, and they can only increase the appeal of your property for a renter. Renters want to feel like they’re living in a home, and they also want to be assured that the place in general is durable. Appliances can sometimes be a sort of litmus test for how well the property may hold up and how comfortable they feel in it. Like we said, it’s not a deal breaker, but it makes a difference.
Curb appeal:
Finally, the curb appeal is the bow on the outside of the package. It’s the first impression you make to potential renters, and they’re going to see it as the projection of their own living space to the world. For obvious reasons, the better the property looks on the outside, the better things are going to feel for everyone, including you as the landlord. The exterior of a rental property is often neglected, and there are many things you can do to the outside that will increase rental appeal. Landscaping is a satisfying weekend project, but don’t forget about the actual property. Above all, it should be clean and pleasing! The smallest changes can make the largest of differences, such as the color of the front door and shutters. It sounds obvious, but the front door is one of the first things people see so it’s worth taking the time and expense to have it be an effective gate to a potential tenant’s new rental! Power-washing the exterior and replacing old, rusty gutters removes any feeling of dirtiness or being run-down. If necessary, have a friend pull up to the property in a car and ask for their initial impression. A potential renter will likely have a similar one, and it’s a good way to get ahead of the game before actually showing the property.
As we said earlier, even though renters have temporary needs, they want to feel like they live in a home as opposed to a stopping point. A tenant who fits this typical description will likely be a good one as well; one who plans on staying for a while will take better care of the property. When you present a clean property for consideration, they internalize a certain set of expectations for their own treatment of it, and this can go a long way towards saving you a lot of hassle down the road. Be sure to check out the photos section of our website for examples of property rehabbing that we’ve done (and sold!), and check back with us each week for more tips!
– Get It Right Solutions LLC