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NOTES FOR EPISODE 396: RENTAL PROPERTY FIXES TO BOOST RENT
If you want your rental property to yield its full potential, you need to look at every possible way to cut expenses and increase income. In today’s podcast. Bill presents a number of simple property improvements you can implement to warrant a boost in your monthly rental amount.
Rental Property Improvements to Boost Rent
Many people think landlords have it easy: all you need to do is rent out your property, sit back, and collect the money each month without much thought. However, that is far from the full story. If you want your rental property to yield its full potential, you need to think carefully about investing in it. However, it might be difficult to decide where your money should go as it is impossible to appeal to all potential tenants. This is only natural since we all have different needs and preferences. But there are certain things any of us would appreciate in a rental. From basic things such as cleanliness and functionality all the way to little perks and amenities that simply make life easier, there are a lot of upgrades for a rental property that can help you drive up your rent and make sure your tenants are satisfied. Here are a few of them.
Make Sure Everything Is Spotless
Of course, before you throw money on less than essential upgrades for rental property, you should make sure the property is immaculate inside and out. If you are renting an apartment in a building, there is not much you can do about the latter, which only means that making sure the interior is spotless is even more critical. If you are renting out a house, on the other hand, you have to devote ample attention to the curb appeal as well. A rather cost-effective way to make the outside walls come to life is pressure washing them and getting rid of any dirt that might be making them appear older and more run-down than they actually are. As for the indoors, pay special attention to moisture-prone areas such as the basement. Brand new furniture won’t charm your potential tenants if there are mold issues beneath the surface. There are a number of great companies that have experienced professional cleaners that will “deep clean” your property from $20 per hour – and they do windows! Companies like TaskRabbit.com, Handy.com and HomeAdvisors.com, to name a few.
Windows
Some of the most essential features of any property are its windows. And while upgrading them is not exactly cheap, the impact new windows make is unmatched. Old, drafty windows are a deal-breaker for many tenants as it means the rental property will have problems retaining warm and cool air, making it uncomfortable to live there. Or the windows stick or don’t close all the way. New windows, on the other hand, are not only great at insulating the property, but they also look much better, allow in more light, and you will have the chance to boost the interior design with stylish window treatments. Something as little as installing practical, minimalistic blinds will make the room feel much more upscale, and there are certainly people willing to pay a higher price for style and comfort.
New Doors
The doors of a rental property see a lot of traffic, so it’s only natural they wear out after a while, which can give a bad impression of your property. You cannot expect tenants to be satisfied with the price of rent if the doors in the property are old, damaged, or even faulty. Changing the front door to a new, sturdy one is an excellent investment that has a huge effect both in the case of an apartment and a house. Potential tenants will feel that they will be safe and sound inside a property with such a door. We installed decorative six-panel metal fire doors that transposed the apartment — and the tenants perception of their home. They felt safer and their entrance looked great! Also, make sure all the doors inside the rental are in good shape and functional – things such as a creaky bathroom or closet door or a broken lock can be fixed in no time but means a lot. Sometimes you can just upgrade the door knobs and deadbolts, making the door look more appealing.
Bathrooms
There is no doubt that besides the kitchen, the bathroom is one of the most important aspects of a home. Overhauling the bathroom is a costly project that would take a while to pay off. At mentioning a bathroom makeover, most people imagine the owner knocking everything down and rebuilding it anew because they didn’t like the color. The bathroom is one of the rooms that potential tenants are going to be the most interested in; unfortunately, in many rental units, it’s also the most neglected area. There are people who will skip on the property if the bathroom is dated or outright disgusting, and, on the other hand, there are property owners who hesitate to rent the apartment because they feel the bathroom isn’t presentable enough. A bathroom makeover doesn’t have to break the bank.
But there are also small things you could do to make the space feel new. Firstly, refer to when I mentioned cleaning. In a bathroom, the first thing that ruins the spotless look is the grout. Thankfully, it’s not too difficult to restore the grout to its former glory. Another small upgrade for rental property that you should implement is getting a new toilet seat. It makes the toilet look brand new, which is a huge plus in the eyes of tenants. You can also buy a paint that you can apply directly over tiles, clean away old paint flakes and traces of mold, buy a new shower curtain, fix the vanity unit, and replace faucets and showerheads. One of my best fixes is re-glazing the bathtub and surrounding tile. For around $200, it beats putting in a new tub and shower unit.
Flooring
While small fixes can undoubtedly give you a little boost, there are also investments that are worth the money in the long run. One such investment is the flooring of the rental property. Carpet is not recommended since it’s not really practical, neither in terms of cleaning nor in terms of lifespan. Also, one of a landlords biggest expenses is turn-arounds or turnovers – with the major costs (90%) being in carpet and paint
Luxury vinyl plank (LVP) is an affordable, waterproof, wood-look flooring option that has great warmth and texture underfoot and installs with peel-and-stick, glue-down, or click-together ease. There are cheaper versions of vinyl plank but you want the durability and longevity. If it does get damaged, you can just keep a supply of extra planks that can be cut to sized and popped in to replace the damaged places.
A high-end material such as timber flooring, on the other hand, is known to last for generations and requires little maintenance while also being easy to clean. It also immediately gives the entire space a luxurious appearance, which, combined with the ease of maintenance, is a big advantage tenants might be willing to pay a higher price for. After all, everyone loves a stylish flooring solution.
Appliances
Another investment that might require some capital but will pay for itself sooner than later is equipping your rental property with some appliances that will make the life of your tenants easier. Having new, modern appliances will not only attract tenants who value comfort, but it will also justify increasing the rent considering just how much money your tenants will be able to save by not having to visit a coin laundry and such. While most renters will have their own electronic entertainment sets, and perhaps even a range, most of them don’t own a washing machine and a dryer. If you can provide them with an in-house laundry with a washing machine and a dryer, you’ll be able to earn some points and even get an excuse to raise the rent a little bit. So, if you have space, adding a washing machine and a dryer to your rental property would be a game-changer. Still, even if there is not much room to work with, a small washing machine still scores excellent points with your potential tenants. If you don’t have an extra room you can repurpose as laundry, you can install both the machines in the kitchen cupboards. Speaking of machines in cupboards, a dishwasher in the kitchen will increase the appeal of your rental property and make it more attractive for potential tenants. A new dishwasher won’t empty your bank account, and it definitely pays off in the end.
Office Space
Sometimes you may have a small room, too small to be a bedroom or even an alcove or empty space in a room. With more and more people telecommuting or simply working from home, refurbishing a space into a home office might be just the amenity your rental needs to attract more desirable tenants – young professionals who value the effort you’ve put into renovating and equipping the rental property they call home. While you can always find salvaged office furniture in classifieds (Craig’s list, Offer-up), you should also check out what online vendors like Wayfair have to offer. Home offices are among the most popular renovation projects since apart from upgrading the property for tenants, they also increase the total value of the apartment if you decide to sell it one day. If you don’t have extra space, how about taking a second bedroom and creating a built-in desk area so the tenant has the option.
A/C
A reverse cycle air conditioner is a great way of justifying the rent increase for a house or apartment. Ideal for all climate types, apart from cooling, reverse cycle units can be successfully used for heating as well. While the price of a new reverse cycle air conditioner might be a bit steep, you can always find a second-hand unit and have it professionally installed. Just make sure that the external unit isn’t located in an awkward place, as potential tenants might find that as a downside – along the back side of the house or in the balcony corner would be great. Or, if the cost is prohibitive, try a window A/C unit. For my studio/efficiencies, offering A/C differentiates the apartment for most in my area. For under $100, I can get a unit that can easily cool the entire unit and it quickly pays for itself from the increased rent and often lasts for years.
In Conclusion
No matter what a great shape your rental is already in, there is always room for improvement that will bring you in more money in the long term. Once your investment starts to pay off, you will have the capital to make even more upgrades, and your rental property will reach a whole new level. Make sure you don’t focus on the wrong thing, though, and put cleanliness above all other fancy upgrades so that you can attract the right people to your property.
Material for this article has been drawn from mashvisor.com
DISCLAIMER: Many of the above strategies take knowledge and have a higher degree of risk. You need to do your research and/or work with someone who is experienced to reduce your risk.
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