Investing in residential property is a financial move that many people are making today. This is because having an income property has been proven to be a great way to boost your investment portfolio and has the potential to help build your wealth.
Of course, there’s more to it than just having a place to rent out. First, you need to make sure that someone out there will want to pay to stay in your property. Second, you must make sure that the rent you get gives you a significant ROI.
Sounds like a challenge? Definitely. But not one that is not impossible to overcome.
In fact, there are ways how you can achieve marketability and increase the rent value of your income property at the same time. Read on to learn the six most effective tips gathered from all over the Internet.
1. Buy in a Good Neighborhood
Location is very important not only to the market that you plan to cater to but also in terms of the rent value of your income property.
That said, the very first tip you need to hear about when you invest is to buy property in a good neighborhood. While this tip may not be as helpful when you already bought a place, it can be used for your future ventures.
Choose properties located in an area with low crime rates and have access to good schools, restaurants, stores, and other amenities. It will also do you good to own a rental in a place with good property values and friendly neighbors.
While these properties may cost a bit more upfront, their value is more likely to appreciate over time. Plus, they are a bit more attractive to reliable tenants, which ensures your income property’s ROI.
2. Highlight What’s Good About the Area
Whether you have yet to buy a place or already have one, you can also lean on the advantages of the area when marketing your rental property.
Cliché as it may be, location is important in real estate for a reason. Still, every property has its own charms, including the most isolated rental locations out there.
When marketing your income property, make sure to include in the rental description a list of all the nearby destinations, activities, and amenities in the area. You can also think about alternative transport options, such as bike share and scooters, to remedy accessibility issues.
3. Make it Look More Appealing Outside
First impressions can make or break your chance of closing a residential property lease at a good monthly rate. This is why you have to make sure to make the best one, especially during a property tour.
The most effective way to do this is to enhance your property’s curb appeal. Remember that it only takes a couple of seconds for a person to make a decision about your property, so you have to make the most out of the improvement project.
Even simple aesthetic improvements like repainting the front door, adding window shutters, or replacing the mailbox can prove to be highly effective in improving the place’s appeal from the outside.
If you have money to spare, you should also consider hiring top landscape design experts to make the yard more appealing and improve the property’s curb appeal. You can also help out by:
- Mowing, raking, and decluttering the lawn;
- Removing trash and recycling bins from the front yard;
- Planting flowers and shrubs to add color and aroma to the place; and
- Adding a tub or vase of flowers by the door with a welcoming doormat.
4. Know What Amenities Appeal to Them
Another thing that could increase the rent value of your income property is the amenities that are accessible to the tenants. Remember that extra perks tend to “sweeten the pot,” so you must research what prospective renters in the area are seeking out.
For instance, some tenants might be too busy at work to do their laundry. To attract these busy bees, you can install on-site washers and dryers to make doing the laundry more convenient.
Alternatively, you can also offer free Internet, which appeals to most people, especially for those who work from home. Making the place energy-efficient by changing into LED light bulbs and solar-powered appliances could positively affect your monthly rent rate, as well.
5. Update the Kitchen
The kitchen is one of the most important rooms in the house that convince potential tenants to sign the dotted line. This means that updating the kitchen can give you a chance to boost your income property’s rent value significantly.
Of course, you need not spend too much on these updates as even simple and lower-cost changes can modernize the kitchen while effectively increasing the property’s value. From a fresh coat of paint and switching door handles to lighting and countertop upgrades, there are plenty of simple-yet-valuable changes you can make to make the kitchen – and the property, as a whole – more appealing to tenants.
The happier they are about the place, the more inclined they would be to pay a higher monthly rate.
6. Build More Storage
Storage is another important thing that most tenants look for in an apartment, condo, or house for rent. For one, it ensures that all their things have a place in the house. It also helps them save more money on additional mobile storage, making them more inclined to spend it on a rental property.
Aside from the kitchen, you must make sure to boost storage capacities in the bedrooms, bathrooms, and even along the entryways. Of course, you don’t need to install built-in cabinets for every wall. Small and simple storage boosters like hooks, closet organizing systems, and shelves can do wonders for your property.
If the place has a garage, remember to install permanent shelving and in-wall storage, as well.
A Worthwhile Investment
Whether you choose to install a decorative flooring to make your property attractive or simply keep the property clean, raising the rent value of your income property is not as difficult as you might think. All you need is some research and plenty of help from professionals who can give you a product that’s worthy of investment.
Rachel Hennessey manages the Pools and Landscaping Division of Hennessey LLC. She also works on Tender and Pre-Qualification and brings in new business to the company’s Construction, Interiors and Civils Division.