As a property manager, maximizing your rental income in most cases means periodic improvements of the property. However, improvements cost money with no guarantees that you will get renters to pay more after you’ve upgraded your property. In this article, you will learn how to improve your property in the most affordable way so that you can enjoy the best return on your investment.
Irrespective of the location of your property, there are a number of ways you can use to ensure that your property is up to the standard and “modern”- It doesn’t matter whether you manage a stand-alone residence or a multi-unit complex, this article will help you improve your profit margin.
Do a Thorough Cleaning Before Replacing
Most managers and landlords like to replace the paint and carpeting of the entire unit when they are searching for a new tenant. This is mostly not necessary. The fact is that most renters may be looking for a “temporary stop” and doesn’t have high expectations like those that want to buy a house.
An affordable alternative to replacing your painting and carpeting is to thoroughly clean the house, remove scuff marks on walls with a Magic Eraser and a mixture of baking soda. Carpets are mostly changed after every seven years. If it is not up to seven years yet, hire the service of professional truck-mount carpet steam cleaners to clean the carpet and make it as good as new. However, if you are investing in a new carpet (mostly after seven years) ensure you choose a carpet with stain-fighting abilities and longer life expectancy.
Upgrade the Kitchen
One place most renters pay utmost attention to when searching for a property to rent is the kitchen. Improving your kitchen will help you to maximize your return on investment.
If you have old and tired cabinets, you don’t necessary have to replace them, you can use cheaper alternative methods such as “cabinet refacing” to make them as good as new. Additionally, you can use high quality and stylish finish such as Annie Sloan Chalk Paint to paint the cabinet and give them a new and attractive look. If you are changing countertops, use a cheaper but more durable alternative such as Formica. Most Formica options look like a stone or granite and will definitely give the kitchen a neat modern look.
Replace Doors
Remember your potential renters are not only looking at the interior of the house, the exterior is also important to them. Most rental properties’ doors tend to get damaged. Don’t cover it up with some touch-up paint; instead, buy a new door and this will dramatically increase the visual appeal of your rental unit.
Fortunately, new doors aren’t expensive; you can get them as low as $80 a piece. When you buy from a local building supply company, you can enjoy even more discount. Overall, using new doors will help you improve your profit margin and maximize your income.
Landscape
One great way to increase the value of your rental unit is to give it a beautiful landscape. Renters love a property with a well-maintained and appealing landscape. You can sell a house or rent it out at a higher price within just a week of giving it a beautiful landscape.
Buy some flowers and put them outside. Your renters will be so impressed when they come for inspection that they may overlook other flaws in the interior. Landscaping doesn’t have to be expensive; budget between $100 and $500 for the landscaping.
Offer a Washer/Dryer
Adding a washer/dryer is one improvement in your rental unit that will help you get the best return on your investment. You don’t have to invest in a new washer/dryer combinations; you can buy a fairly used one from Craigslist for as low as $100. This feature will allow you to increase your rent by an extra $50 to $100 per month.
Three tenants can be using one washer/dryer and this will more than offset the cost of your investment and help you maximize your income.
Conclusion
Don’t forget to look for other parts of the house that are looking old and tired and try to give them a modern look. Bear in mind that improving your property to get the best return on your investment doesn’t mean using cheap materials or doing shoddy work. This will make the renters assume that you don’t care about them or the property. Your goal should be to strike a perfect balance between cost and quality to enjoy a greater profit margin.
