Article summary
Whether you need to attract a new renter or you've decided to put your rental up for sale, you want to get the highest property value possible. But what should you do to preserve or improve your property’s value? Here are six tried and true strategies to increase the profit of your investment property.
Fix It Already
You see it. We see it. That old familiar crack in the pavement, Fluffy's scratches on the back door, and stained carpet that looks like it’s been in the home a few decades. If you notice it, so will your buyer or renter. You are sending a clear message to your next potential renter: I Don't Care. And if that’s the case, they won't care to pay top dollar for your place. Approach your property with fresh eyes (or invite a picky friend to do this for you) and give your property the TLC it deserves.
Be Kind to the Earth (and Your Wallet)
It’s time to install energy-efficient lighting, a smart thermostat, better insulation, and smart appliances (think washer and dryer). According to EnergyStar, new appliances save upwards of 25% on water and electricity costs and a smart thermostat saves $100/year in energy costs. Not only will the earth thank you, but potential renters will, too.
Minor Updates Can Have Major Appeal
Fashion trends may return every thirty years, but you shouldn’t plan on waiting thirty years for your kitchen and bathroom to come back into style. You don’t have to undertake a complete renovation for a return on your investment, either. Refinishing cabinets with new paint and hardware can cost well under $1,000 and increase the aesthetic appeal of a room tenfold.
“Set The Stage” for a Potential Renter or Buyer
Empty rooms can make it difficult for people to picture themselves living there. If your rental home is currently sitting empty, consider hiring a staging specialist to give the house a more personalized look. Average costs are around $1500, but you won't need that furniture long- homes that are staged get rented or sold 87% faster than non-staged homes, and for 17% more.
Paint the Exterior for Improved Curb Appeal
Everyone knows that a fresh coat of paint does wonders to even the shabbiest of interiors. But you may not know that painting the exterior of your property the right color can improve its appeal by up to $5,000. If you’re thinking of painting the front door, think black; it can improve the property value by nearly 3%.
Finish Unfinished Square Footage
Your rental may have areas that can be converted to usable square footage with a bit of effort. An outdoor patio can be covered and screened in, and an attic or basement can be finished as living space. Just make sure any conversions meet all building codes, and you'll enjoy a significant bump in rental value.
Upgrades, fixes, and regular maintenance expenditures can add up. To guarantee that you don’t lose value from falling rental home prices, consider Home Price Protection from REZITRADE. It protects you from negative swings in residential home prices by paying you when values fall. Take good care of your rental property and it will take care of you for years to come.
Takeaways
To maintain or increase rental property value, make sure you-
- Fix obvious eyesores such as cement cracks and carpet stains.
- Install energy-efficient appliances and thermostat.
- Update kitchen and bathroom cabinets and fixtures.
- Stage empty rooms to look lived in.
- Paint the house in neutral tones.
- Finish unused areas to gain square footage.
