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Use Design To Increase Investment Property Value and Attract Tenants
Renting is on the rise in the U.S., which means landlords are in the perfect position to find new tenants. According to research, rented homes made up 34.7% of the market in 2020. Of course, other property owners are taking advantage of these higher numbers, which means your house needs to stand out. Fortunately, you can attract renters with the right design choices. Here are a few tips that can help make your property attractive to would-be renters.
Beautify the Outdoor Spaces
When updating your rental property's design, don't forget about outdoor spaces. A neat front lawn increases curb appeal, while a comfortable backyard helps renters envision living there. You can find plenty of ways to beautify a yard to great effect:
• Create a dining area
• Build a deck
• Install outdoor lighting
• Add a fire pit
• Plant flowers
It's a good idea to hire professionals to handle backyard landscaping rather than tackle these projects yourself, especially if construction is involved. As you consider contractors, make sure you shop around and look for deals to minimize costs. You should also read reviews and check with local associations for complaints.
Consider a Property Manager
Property management is a full-time job. If you decide to take it on yourself, you'll be solely responsible for the following:
• Scheduling repairs
• Screening potential tenants
• Handling lease paperwork
• Listing and advertising
• Collecting rent
If you hire a property manager, you don't have to worry about these issues, saving you time. On the other hand, taking the do-it-yourself route saves you money, as most property managers take an average of 10% of the rent for their services.
Include Amenities
You can't change certain things about a property, such as the location. However, there are plenty of benefits you can add to attract tenants:
• Central air conditioning
• Lots of natural light
• Walk-in closets
• In-home laundry
• Covered parking
• Stainless steel appliances
Make Profitable Modifications
Has it been a while since you upgraded your rental property? Tenants expect the latest designs and may pass if your house looks dated. Since renovations cost a pretty penny, you want to choose modifications that most efficiently increase the property value:
• Replace flooring with durable materials
• Add storage space
• Replace countertops with low-maintenance, high-durability options
• Replace toilets
• Repaint interior and exterior
Keep Up With Repairs and Maintenance
As the landlord, it's your legal responsibility to keep up with repairs and maintenance. It's also in your best interest, as minor issues can lead to long-term damage if not taken care of immediately. The following are the most common repairs in rented homes:
• Chipped paint
• Clogged toilets
• Broken appliances
• Leaking sinks
• Malfunctioning AC
You can minimize the number of repairs with preventative maintenance. The following should be on every landlord's checklist:
• Test carbon monoxide and smoke detectors
• Replace HVAC filters
• Hire pest control
• Tune up the furnace and AC systems
• Clear out the dryer vent
You should also schedule certain tasks between tenants to ensure the property is ready for move-in:
• Deep clean the carpets
• Wipe down walls
• Clean oven
• Dust ceiling fans
Market Your Rental Home
Finally, you need to think of renting as a business, which means marketing your "product"; The best way to start is by researching your local market. Make sure you price competitively but don't go below what the home is worth.
You can offset higher rent by offering amenities that make the price tag worth it.
Renting a property is a reliable source of income, but you need to attract potential tenants before signing the paperwork. With the right alterations, you can create a beautiful home that renters will compete to lease.