If you want to increase the amount of income you bring in with your rental property, you have to add value to the property. So, adding value. What does it mean to add value to a rental property? There are some basic strategies I’ve used over the years to help increase my rental property income. They include some creative ways to make improvements to both the inside and outside of the property without incurring too much expense. We will discuss some of these ideas here in a little more depth.
Adding Value and Increasing Rental Property Income
First and foremost, I was taught to take pride in my possessions, this stems from my family instilling good morals and values. How does that tie into property? Simple, if I won’t live in the property then I shouldn’t expect someone else to live in it.
Have you ever driven by a house and see a lawn all disheveled or siding or brick in desperate need of a power wash or refacing? At OTA Real Estate, we encourage students to get boots on the ground in areas they are planning to do business. Overgrown lawns, boarded up doors and windows or a property that looks generally disheveled could be an investment opportunity. It’s a great way to find rental property you can purchase for a great price, which means more profit.
Once you own the property, where do you start? That overgrown, disheveled appearance should be addressed right off the bat. Start with cutting the lawn, hedging some of the bushes, replacing or repainting the front door, garage door and replacing broken lights. This will make the property aesthetically pleasing and will draw people to it. People will pay more rent for a property they can take pride in living in.
Once the outside looks appealing, it’s time to focus on the inside. You’ve probably heard it before; a fresh coat of paint can go a long way. When it comes to flooring, I’m not a huge fan of carpets and most all my rentals have oak floors, so I like to get them sanded and stained to make them look brand new. However, if you prefer carpet you can replace that as well.
The little things can make a big impact in improving the overall attractiveness of a home, so don’t forget about replacing outlets, outlet covers and switches that are dirty or cracked. If the kitchen cabinets are dated, a new set of doors or some new hardware can change the look quite nicely. With a little creativity, you can improve the look and feel of the home without spending tons of money to replace cabinets, tiles, etc. To me, being creative is an important aspect of getting the most out of your improvement dollars, thereby increasing the profitability of your rental property.
You can come up with other ideas that will allow you to charge higher rent by putting yourself in the place of the tenant. What amenities would you want in your rental home? I’d pay slightly higher rent for a property that came with a washer and dryer, for example. If your target tenant is a family, you could think about putting up a swing set or play house in the back yard. Once again, be creative.
Increasing the amount of rent you can charge for your property is all about making it a place tenants would want to live in.