Are you having a hard time getting a decent income from your rental property? While there are a ton of factors as to why this could be happening, one of the most common reasons is the overall property value. When your rental property has a low property value, getting tenants to pay more than it’s worth is nearly impossible. However, if your rental property has a high property value complete with amenities, prospective tenants are willing to pay more to live there.
So just how can you get more rent from your income property? Read below to get a few savvy ideas….
1. Start with Curb Appeal
What does the exterior of your rental property look like? Is the lawn green and lush or is it bare and brown? Is the siding intact or is it hanging on by a nail? Is the backyard spacious and ideal for entertainment, or is it a mess? When a tenant is considering how much they’ll pay to live in a rental property, these are things they look at.
It doesn’t take much to improve the curb appeal of your rental property. Investing in quality grass seeds from companies such as Nature's Seed can transform a dull, bare, and brown yard into a lush green one. A coat of paint and repair of the siding can enhance the look of the home. Get rid of any debris in the backyard and fence it in for a nice touch.
2. Consider New Flooring
Putting in a new floor in certain rooms in your rental property is a great way to impress new tenants and increase the property value. For instance, ripping out old, stained carpet and replacing it with linoleum, laminate, tile, stone, or hardwood floors not only adds to the property value, but also makes it easier to maintain for tenants – which is a plus.
3. Install Kitchen Countertops
The kitchen is a highly utilized room in the home, and should therefore be one of the main attractions when trying to advertise your rental property to tenants. While you don’t have to go all out and install the more expensive granite countertops, there are aesthetically appealing, affordable alternatives that will increase the property’s value.
4. Increase Storage
One of the top priorities for renters is storage space. You can really set your rental unit apart from the rest by improving the available storage. This doesn’t mean you’ll need to put an addition on your rental unit. You can increase storage with simple steps like adding racks and hooks. You can also do things like built-in shelving, adding shelves to a garage, or installing closet organizers.
5. Improve the Efficiency
An inefficient rental property won’t go for as much rent on the market. If you want to increase the property value and ask for more rent from tenants, making sure that the unit is efficient is a must. A simply energy audit will let you know where the issues are. Installing new windows, upgrading the electrical system, investing in energy efficient appliances, and installing LED lighting are all great ways to improve the property’s efficiency.
6. Miscellaneous Improvements
While improving the aesthetics of a rental property can increase its value and attract higher paying tenants, it won’t go very far if there are structural or general issues with the property. Prior to renting out the unit be sure that you’ve had it fully inspected. Have the electrical, plumbing, heating and cooling systems checked and upgraded or repaired if necessary. At the end of the day, tenants will pay more for a rental property that doesn’t require a new work order request every few weeks.
Owning a rental property can be a great way to make passive income as long as you manage it wisely. As you’re making improvements to help increase the value of your rental property it is important to remember to maintain a balance. You don’t want to invest too much and not see a return. Once you’ve done the upgrades, have a real estate appraiser come to the property so you can see just how much more rent you could potentially receive for your property.
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