Upgrade Your Property, Upgrade Your Rent
As a landlord, you need to make the best return on your investment. Your rental home represents a huge investment, but it “takes money to make money”.
Your property’s appeal dictates the amount of rent you can expect, so you want to optimize your home’s marketability to maximize the return. You know you need to upgrade some of the elements of the home, but which upgrades make the most sense? Should you paint the exterior? Should you replace the carpeting with hardwood or tile? What about granite countertops, upgraded cabinetry, modern lighting or should you finish the basement?
The long and short answer is “none of the above”. The most common mistake homeowners make when deciding to upgrade or place the home on the rental market for the first time is making upgrades that they would like to have if they were still living there. These upgrades, however, rarely pay off in the long run and are costly to repair. For example, a renter, who has no financial stake in the property, will still produce as much wear and tear on $65 per yard hardwood as they would $25 per yard flooring.
Are your countertops tired, full of cuts, or permanently stained? Did you know that there is a product you can purchase that allows you to “paint” the countertops to a like-new appearance?
Do you have dingy bathrooms? Consider a quick linoleum replacement, new caulking, and a new vanity and faucet. Even replacing the fixtures, faceplates, and lighting can quickly liven up a space and bring a more modern look to any room.
Keep in mind that when you own an investment property, upgrades may be tax deductible (consult your Certified Public Accountant).
So what is an owner to do to increase the rental rate on the property? What about appliances? Should you go with stainless steel? A better idea is to purchase a package deal through The Home Depot for a mid-level refrigerator, stove, and dishwasher, and then market your property with an upgraded kitchen.
Real Property Management has the expertise to guide you through upgrades and corresponding rental increases you could enjoy as a result. Let our more than 30 years of experience be your next upgrade. Want to learn more? Find your nearest Real Property Management office for more information.