Setting rental property improvement goals after the New Year is essential. Two goals come to mind, increasing the value of the property already owned and maintaining the property. To make more on the return of your investment, you need to upgrade the value of the property to bring in a better grade of a tenant. Plus, keeping your rental property maintained is essential. But only doing the minimal of maintenance will give you less in returns and a less desirable tenant.
How to Increase the Value of Your Property
When it comes to increasing your rental property’s value, it all comes down to upgrades, upgrades, upgrades! A new coat of paint, updated appliances, and energy efficient windows not only help you save money on future maintenance, but can help you attract new tenants. Think of it this way, the nicer your property – the easier it is to attract tenants who are willing to pay higher rent amounts.
Why It’s Important to Maintain Your Rental Property
Maintenance of your rental property is just as essential. When shoddy repairs are done after a tenant moves out, it doesn’t save you money. In fact, it won’t get you the best tenant or a good return on your investment when compared to other rentals.
By spending some money to make improvements, add some character, and fix the pothole in the driveway, all can bring money back in. The benefits of upgrading your rental property will be maximizing the rent and enhance the home’s value. Also, the majority of repair expenses are tax-deductible, and it will improve your cap rate.
Plus, by upgrading your property, it will permit you to have a legal and healthy relationship with your tenants. Your rental property needs to stand out above other rental properties of equal value.
Legally speaking, ghosts exist. You should always consult a lawyer for such advice, but legally speaking, they do. The law doesn’t state if ghosts literally exist, but according to the New York Supreme Court, people have the right to know you’ve had some spooks and scares. Often referred to as the Ghostbusters Ruling, Stambovsky v. Ackley debated a haunted house that Helen Ackley had sold to Jeffrey Stambovsky. Ackley had told newspapers and even Reader’s Digest about her poltergeist ridden abode. When out of towner Stambovsky saw the house, no one saw fit to let him know. Needless to say, he was not happy. Neither was the court and because she told national and local publications, the majority of justices said: “as a matter of law, the house is haunted.”
When dealing with your stigmatized property, ask a local lawyer what the laws are in your area, and double-check your local laws on how much you are required to disclose. It may be that ghosts aren’t a big deal, and you don’t have a disclosure law. Otherwise, it’s good practice to be honest when asked.
Get Good Tenants in 2020
How to get a prospective tenant to get out of the car and check out your property? Then once inside, what can you do to make the person want to live there? Below are some suggestions:
- Curb appeal: Renters will look at a property first from the curb, which is known as curb appeal. If your rental draws prospective tenants in from the curb, then your property is on the right track. Making sure that the fence doesn’t have holes, trimmed shrubs, cherry flowers planted, and the grass mowed will go a long way to increase the property value.
- Appliances: When a renter enters the building, usually, the first thing that is checked out is the kitchen. If the appliances are pieces that are mismatched from other apartments, are old, and only function half the time, there will be trouble. Maintenance calls on appliances like these can be frustrating, inconvenient, and expensive. It’s easier to put in appliances that look good and work.
- Countertops and storage space: These are two crucial issues because a chipped, dirty countertop can turn off a prospective renter. Plus, if the storage is cramped or the cabinets need a fresh coat of paint, it can make a renter go back out the door. Choose a durable countertop, that compliments the kitchen and is functional. With storage space, the more, the better. If the cabinets have seen better days, then give them a fresh coat of paint and new hardware.
Nicely upgraded rental properties will maximize your potential income and keep your property capacity filled. Soon, your investment will pay for itself.
What are you looking to in 2020?
Let us know in the comments!