Turning your home into a rental property can be a great source of passive income. Increased property standards will help maximize the rent, decreased operating expenses, and increased re-rent value. This blog will help guide you to what to anticipate as far as getting a rental property in a rent-ready condition that will decrease vacancy costs and provide a long-time renter in the future.
Simple aesthetic improvements such as refreshing chipped paint may be on the front door or patio, mowing and seeding the lawn as needed, hedging any bushes or trees, etc. Even if there is no lawn, one should consider adding a dryscape with rocks or a plan to maintain and regrow the lawn.
Property Walk-Thru Checklist: In all rental properties, there are essential items that should be checked.
- Look at every outlet you pass and make sure all switch plates are on and safe
- Make sure all windows have window coverings per Fair Housing
- Check windows to make sure they all lock and the home is secure
- Look at screens to make sure they are in place and in excellent condition
- Look for cracks in windows or window frames
- Turn on all the faucets, look for leaks under each sink, and run the garbage disposal
- Inspect each appliance to make sure it is clean and working
Tenants will pay a higher rent price to live in a nice, modern unit. After updating your floors, you should raise your rent price to reflect your unit's updated value. Since your investment property's purpose is to make money, the new flooring cost is justified. You would want to find the flooring that meets a few requirements and gives some return on investment to your property.
Carpet is a common choice in bedrooms for its warmth and coziness. Cost-effective carpet options are affordable upfront but may require more maintenance and cleaning in the long run.
Vinyl flooring is an affordable choice in initial costs and long-term value. It is just as functional in bathrooms and kitchens as it is attractive in bedrooms and living rooms. The durable seal on some luxury vinyl planks can last up to 10 years.
Painting the interior of your rental home is something that will not only increase the value but also attract potential tenants. Dirty, scuffed up walls will happen over time and a major turnoff to most people. Choose neutral colors since these will appeal to a broader audience. Grays or different variations of beige and white are great choices throughout the home.
Kitchen & Bathroom Cabinets
After years of wear and tear, the grout between tiles and surrounding the bathtubs can start to look icky. The simplest solution is to use a bleach solution to scrub the grout clean. If that does not work, you should consider having it re-glazed as it is a lot more affordable than replacing an entire bathtub while still giving off the impression that it is brand new.
The importance of cleanliness should be at the top of your list when you operate rental properties. By presenting a clean, well-kept property, you are projecting to your tenants that you care about your property, and you expect them to keep it in the same condition.
To prevent yourself from wasting time and money, these are some measures you should take not only to get the property rent ready but also to get top rent and a top-quality renter. Renovate to make your property as attractive as possible to potential tenants. If you have room in your budget, paying a little extra for a more finished look will give you room to raise the monthly rental amount. By including newer and higher quality appliances, updating the countertops, or making any other improvements, you will not only give future tenants a great experience, but these products will likely require less maintenance. These updates mean fewer calls to you to come to fix a broken dishwasher that keeps leaking. In turn, this increases renter satisfaction and makes them more likely to renew their lease. If you do not have the time or the resources to inspect your property before you list it, work with professionals who have experience in this area. Note this is an investment. The more you invest in your rental property, the better the benefits you'll reap in the end!
Your primary goal is to attract quality, reliable residents for your investment. By offering an updated property, you will net more in rental income, covering the improvements' cost.