Having a vacant house or apartment can be a nightmare for any property owner or manager. As a landlord, your goal is always to find a long-term tenant who takes care of your property and pays the rent on time in order to maximize the return on your investment. However, finding such a tenant can be a real challenge considering the competitive real estate market.
One of the best ways to acquire a long-term tenant and even increase your rental income is to renovate your property. Whether you own a multi-family residential complex or just an apartment, some strategic improvements to your property can help you increase its value, stand out from the competition, demand a higher rent, and improve your profit margin!
Here are some great renovating tips to attract tenants and even increase your rental value.
Focus on the Practical Rather Than the Aesthetic
Remember, you will not be living at the property, and your tenant will not value your property the same as you, so always focus on improvements that are functional and practical as opposed to purely aesthetic.
First Impressions Matter!
The first impression your property makes on a prospective tenant is a significant factor in how soon it will rent and its rental value, so make the first impression count! “Create and design “the tour”, a path of travel of the entire property that will shine a light on all you have to offer. This tour should be landscaped beautifully, newly painted and highlight all the amenities you offer. When curating the tour, start with the curbside appeal and take them through the corridor to the unit, fitness center, clubhouse and parking facilities. This will allow the potential resident to see that ownership not only maintains their property but is offering this value to those who choose to live there.”
- Paint the walls
It’s always good practice to paint the exterior and interior of the property. Stick to neutral colors rather than your ‘personal favorite’ to ensure mass appeal.
- How About Some Landscaping?
It may seem like a no-brainer, but don’t underestimate the impact a well-manicured lawn, some potted plants, and a well-maintained driveway can have on a prospective tenant!
Pay Special Attention to Kitchens and Bathrooms
According to statistics, most people spend most of their day eating or grooming themselves, i.e., they spend most of their time in the kitchen or bathroom. So, pay special attention to these areas while renovating. A small investment in these rooms can have a direct impact on increasing the rent.
Small touches such as painting the cabinets or replacing door and drawer fronts and handles can make a big difference in the kitchen. Are the faucets worn out? Make sure to replace them! Give a matching finish to the microwave, fridge, and dishwasher. Also, consider investing in a new granite countertop if you can; these are a big favorite among prospective tenants.
As for bathrooms, make sure to repaint the cabinets and replace any worn-out or missing handles. Replace the showerhead and faucets. Change the entire toilet if possible and replace the bathtub with a walk-in shower. Add some shelves for more storage space.
You may think a tenant would appreciate you providing a carpet, but that’s not necessarily true. Rugs are not very popular among renters because they can retain dirt, smells and spread allergies. On the other hand, hardwood floors are trendy these days, so consider replacing your floor with laminate or vinyl flooring which is not only affordable but looks like hardwood.
Improve Energy Efficiency
A home with lower heating and utility bills will be much more attractive to prospective tenants.
- Fix the Roof
The roof plays a significant part in your property’s energy efficiency. A damaged roof can also be a nuisance in the rainy season. Prevent water leaks and environmental issues by performing a roof maintenance every year. Make sure to have it repaired if needed.
- Upgrade the Wiring
If the electrical wiring and fittings in the property are old, they will pull more energy and lead to higher electrical bills. Consider upgrading the electricals and even switching to LED lights!
You should also consider adding features such as air conditioning, changing the light fixtures and providing USB charging stations in key locations. Such amenities allow you to justify a higher rent factor.
The above are just a few renovating tips by which you can not only retain your tenants, but also increase your property’s rental and resale value.
If you’re looking for a reputable construction company in Los Angeles, CA, to renovate your property, get in touch with Streamline Builders. We provide our clients the highest quality renovations, value-engineering, and management of the complete project from start to finish. Reach out to us for a free consultation!