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By Rhonda Underhill
If you’re looking for a way to increase your rental property income, one of the best ways is to improve the look of your property. With a few simple upgrades here and there, you can transform your property into a desirable rental that will attract quality tenants and generate higher returns on your investment. Read on for advice on which tasks will make the biggest difference.
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Make Sure You Have a Business Plan
Before embarking on any renovation project for an investment property, it’s important that you create a comprehensive business plan outlining goals, objectives, possible risks, etc. Doing so helps ensure that all renovations are completed within budget while still maximizing returns on investments through strategic decisions made throughout every step of the process. Plus, having a solid business plan will make securing financing much easier should the situation arise where additional funds are required beyond what was available upfront.
Learn About Essential Amenities and Upgrades
Viewing online listings in your area is a strategic way to understand the current real estate market and the types of amenities and upgrades landlords are offering their tenants. These listings provide a wealth of information on available properties, complete with photos, descriptions, and details about the neighborhood. You can use these insights to make your property more attractive to potential renters or buyers. For instance, if you see that properties in your area commonly offer smart home features, energy-efficient appliances, or pet-friendly amenities, you might consider investing in similar upgrades for your own property. This way, you can stay competitive in the market and potentially increase the value of your property.
Update Hardware and Fixtures
One of the easiest ways to give an older property a facelift is by upgrading fixtures and hardware. This could mean changing out drawer pulls in the kitchen or bathroom cabinets, replacing older light fixtures with more modern ones, or even swapping out door knobs and handles for something more modern. All of these changes are relatively inexpensive but can make a big difference in the overall appearance of the space.
Make Use Of Area Rugs And Textiles
Area rugs and textiles are another great way to add color and texture to any room. Not only do they help tie together furniture pieces, but they also add warmth and coziness to any space. Investing in some area rugs or textiles can go a long way towards making an older space feel more inviting.
Upgrade Kitchen Appliances
Outdated appliances can be a major turnoff for potential tenants, so investing in some new ones could be worth it if you’re looking for higher ROI. Still, it’s important to choose appliances that are energy efficient as well as aesthetically pleasing. This will increase their appeal while also lowering utility costs over time.
Add Smart Home Features
Smart home features can offer significant benefits to both tenants and property owners. For tenants, the convenience of connectivity, improved safety, and the potential to reduce utility costs are attractive features. Smart thermostats, for example, allow for precise control over heating and cooling, leading to more efficient energy use and lower costs.
For property owners, smart home technology can facilitate preventive maintenance, enhance security, and increase the property’s appeal, potentially attracting tenants willing to pay a premium for these features. Moreover, smart locks offer both convenience and added security, allowing landlords easy access for maintenance or emergencies and tenants the peace of mind of keyless entry.
Update the Bathroom
Bathrooms are one of the most important rooms when it comes to attracting quality tenants. Investing in nicer amenities can be well worth it when trying to get higher returns on your investment property. Adding new towel racks, toiletries holders, soap dishes, mirrors, and other small items can instantly elevate the look of any bathroom.
Install a New Plumbing System with Eco-Friendly Features
Investing in eco-friendly plumbing systems like low-flow toilets or shower heads can help reduce water usage while also providing substantial savings on utility bills over time. That makes them great investments when it comes to increasing ROI from an investment property purchase. Additionally, eco-friendly plumbing systems often come with tax incentives which further boosts their value for those interested in owning green homes/rental properties!
If you decide to maintain investment properties, know that making improvements doesn’t have to break the bank. With careful planning and prioritizing upgrades that provide high ROI, anyone hoping to gain higher yields from rental properties should consider implementing the above strategies. Not only does doing a bit of refreshing here and there make a home look nicer, it also adds value over time through lower utility costs, higher tenant retention rates, plus possible tax credits available depending upon particular items upgraded.
