Are you looking to make more money from your rentals? The key is to spend some first. Adding value to your properties through improvements and enhancements justifies a rent increase.
Even if your improvements are large-scale and expensive, you will soon earn back what you spent and more. Remodeling, constructing, and renovating rooms each have a high return on investment (ROI), meaning they will help you generate much more revenue in the future.
Plus, your improvements will also attract tenants willing to pay for the newest features and amenities. Higher-paying tenants keep your units filled and vacancies at bay.
Here are a few improvements that will increase ROI and add value to your rentals.
Add Square Footage
Adding square footage is a logical way to add value to your rentals. Construction can be a lengthy investment, but your tenants will appreciate the extra space.
Depending on the type of property you own and its specifications, there are a variety of ways you might choose to expand on your property. For instance, backyard space could be utilized for a sunroom or extended kitchen. Decks, porches, or patios are also great investments for summers and warm climates.
If you’re feeling particularly ambitious, you could also expand upward with a second story or high ceilings for a more spacious feel.
Enhance Curb Appeal
Curb appeal is the attractiveness of your rental as viewed from the street. Sprucing up the exterior of your rentals is a huge draw for new tenants attending showings.
Start by assessing the yard: trim overgrown shrubbery, mulch flower beds, or buy new plants for framing the house. Even these small steps go a long way toward renting out a property at a higher rate.
You can also do some cosmetic touch-ups to the building itself. Consider adding window box planters, repaint doors with colors that pop, and touch up exterior paint where it has chipped away.
While you’re making improvements to the interior, don’t forget that your rentals should reflect that value on the outside too.
One way to increase rental value is to add amenities. An easy method is to install new appliances in vacant units while you’re waiting to fill them. Tenants looking for certain amenities will pay extra for units that have them.
However, if you think your current tenants won’t appreciate the rent increase, you can install new amenities in individual units on a case-by-case basis. Let tenants decide whether they want an amenity, and charge accordingly.
Some of the most popular amenities include in-unit laundry facilities, dishwashers, energy-efficient appliances, fireplaces, and high-speed internet. You could also invest in community amenities such as package lockers, pet amenities, firepits, playgrounds, gardens, co-working spaces, or fitness centers.
Even resident events or access to an online resident portal can be considered amenities.
Install Smart Technology
Smart home technology is an increasingly popular addition to rental real estate. Landlords looking to add value and modern appeal to their units should consider the benefits of smart locks, thermostats, video doorbells, and other gadgets.
Smart technology is not only a convenience. It also adds intangible value to your properties in the form of increased security, safety, and energy efficiency. For example, video doorbells deter porch pirates and buglers, while smart thermostats save tenants on utility bills.
Remodel Kitchens & Bathrooms
Kitchen and bathroom renovations offer the highest ROI for rental properties. Tenants spend a lot of time in these rooms, and they will pay for clean, modern spaces.
For kitchens, focus on the cabinets, countertops, and appliances. Try granite or stone countertops for a newly renovated effect. Replace old appliances to match the finishes of newer ones for a fresh, cohesive look.
For bathrooms, expand the space as much as possible with vertical storage, careful placement, or by adding square footage. Bigger bathrooms feel more comfortable and higher quality. You can either leave the extra space empty or add a walk-in shower, claw-foot bathtub, additional sinks, or additional closet space.
Install Hardwood Flooring
Hardwood flooring is modern, durable, and easy to clean. Tile or luxury vinyl plank flooring is also great waterproof, stainproof choices. The single step of replacing old carpet can immensely increase your property’s value and look.
Adding Rental Property Value
The above improvements, as well as others, add value to your property and help it appreciate over time. This is beneficial for all—not only will your tenants get better amenities and renovated spaces, but you’ll attract higher-paying tenants and eventually earn more on the sale of your property. By investing in improvements to your properties, you can generate more revenue and set more aside for future rental goals.
Also Read: 4 Ways To Keep Seniors Active In The Community.