Home buyers are often hesitant to purchase a property that looks like a problem. Similarly, renters don’t want to move into a place that looks like a headache waiting to happen. A more attractive rental property is a more valuable one, both in terms of attracting tenants and in getting the highest cash-flow every month (and in an eventual sale). Here are some invaluable insights into the best ways to increase the value of a rental property without gutting and remodeling the entire thing.
1. Upgrade the Appliances
In the grand scheme of things, appliances don’t cost a lot. However, they can take a kitchen or washroom from circa-1992 and transform it to look more sleek and modern. If you wouldn’t want to rent a place where you would be cooking on an outdated stove with banged up, crooked ring heating elements, neither will your potential renters. Spend a little now and make a lot more in the long-term with higher monthly rates.
2. Avoid a Time Warp with New Lighting Fixtures
If you’re renting out a Victorian house with chandeliers from the early 1900’s, that’s charming. If you’re renting out a house that’s circa-1974 and it still has its original lighting fixtures, that’s just terrible. Head to your local hardware store and pick out new fixtures that will bring your property into modern times.
3. Plumbing Fixtures Stand Out
If you’re working with your first investment property, it can be confusing to know where to spend money. New plumbing fixtures are a good rental strategy. Even if you’re not going to completely redo the kitchen and bathroom areas in a property, take the time to upgrade those hard water-stained, dingy old faucets and shower heads. The kitchen and bathrooms make a huge impression on people when they come to view your property, and little changes like this add class and the promise of comfort.
4. Replace the Flooring
New flooring can completely transform the look and feel of a rental property. You don’t have to spring for expensive wood or natural stone floors in order to make a place look luxurious. Today, you can find affordable tile options that mimic the look of wood or natural stone with none of the maintenance hassle. Speaking of maintenance, changing out the carpet in carpeted areas is definitely worth it. Not only does it refresh a property; it’s also easier to clean and keep nice when it’s high-quality and newer.
5. Beautify the Outdoor Space
If your rental property is a home with a yard, make sure the outdoor area looks well-kept and appealing. It doesn’t cost much to put out flowers in the springtime or keep the yard mowed and weeded. If your property is a condo or apartment with a balcony, consider adding furniture or nice planters to turn it into a space that can be fully utilized by renters. Having an outdoor area is a huge advertising point, so make the most of it.
6. The No. 1 Way to Increase the Value of a Rental Property - Paint
Real estate investment experts will tell you that simply getting out the paint and roller brush is the easiest and most impactful way to get the most out of any rental property. A fresh coat of paint can make a decades-old home or condo look brand new. Keep your color choices neutral and keep in mind that in small spaces, lighter colors will help open things up and make them feel larger.
Don’t confine your painting to the interior, either. Make sure the paint on the outside of the home is up-to-date and well-maintained, as well. Keep the front door painted and free of chips and scuffing to make an amazing first impression to potential renters.
Smartland is Northeast Ohio's largest turnkey real estate investment firm. Our team combines financial savvy with expertise in property management to help clients identify and invest in alternative investment vehicles that have strong growth potential.