Real estate can be a fantastic investment and a great way to diversify your portfolio with passive income if executed correctly. These past couple of years have been a whirlwind in the real estate world, and properties seem to be increasing in value relatively quickly. This value increase means that right now is the perfect time to acquire a rental property, renovate it, and capitalize on your investment to put more money in your pocket.
If you have a rental property already, renovations can help you charge more and stand out in the current competitive market. Simply put, updated properties are more attractive to potential renters. The more valuable your rental property is, the more likely you are to find a tenant and charge more for rent. Therefore, a renovated property helps you make more money. To give you some ideas for updating your property, we have outlined seven ways to make your rental property more valuable to prospective tenants.
Add Storage
Storage is one of the top priorities for renters, so landlords can make their properties stand out by increasing storage options. Even small storage spaces can add value, such as adding hooks to entryways or bathrooms, installing closet organizing systems, putting more shelves in the living room, and adding additional storage in the garage. Larger storage projects that add value to a home are framing a new closet or adding a shed on the property. Renters want functionality in their homes to store their belongings comfortably and out of sight.
Add a Carport or Update Garage
The garage is often an overlooked aspect of the house when making upgrades for tenants. However, the right upgrades to your garage can make all the difference. A new garage door, for example, adds curb appeal to your home. Additional storage areas in the garage also add value. If there is no garage to work with, adding a carport to the property can help attract potential renters who may have previously dismissed the home.
Replace Flooring
Flooring is one of the most important aspects of a rental property because it can make or break the value of a home. The wrong flooring, or outdated and dirty floors, can instantly deter potential tenants and significantly lower the value of your property. Regularly replacing carpets is one of the most efficient ways to increase the value of your rental because old, dirty carpets can be an eyesore that deters people from the property. Brand new carpets, on the other hand, can help the home stand out. If you want to go a step further, replacing carpets with vinyl or wood flooring can increase the value even more.
Paint
A simple yet effective way to instantly increase the value of your rental property is to add a coat of fresh paint to the walls. When repainting the home, pay special attention to any areas on walls, doors, and trim that are worn down because these can lower the appeal to prospective renters. Another way to make your home appear more attractive to potential renters is to paint the home neutral colors in the beige and gray spectrum. These color schemes will make the house seem more cohesive and less cluttered than bold colors.
Hardware and Fixtures
Replacing outdated hardware and fixtures with a few simple swaps can make a home feel much more modern with little effort and money. Knobs, handles, fans, lights, and faucets can make or break a room, so updating them is a great way to improve the property and add value. While hardware may seem like a tiny factor in the grand scheme of the house, it can transform the look and feel of a property. If the fixtures on your property are ten years old (or more), then it’s time to upgrade.
Landscape
More often than not, landlords choose not to pay much attention to the landscape when making upgrades for renters. However, since the landscape is the first thing tenants see, spending extra time on improvements can help your property stand out. Tenants are willing to pay extra for the right curb appeal, which makes your property worth more money. Certain upgrades such as replacing window shutters, painting the front door, a freshly mowed lawn, hedging trees and bushes, or replacing an old mailbox make all the difference.
When making these upgrades, choose low-maintenance options so there is not too much upkeep required from you or the tenant. This makes both of your lives easier and will save you a lot of headaches in the future.
Roof
On average, you will need to replace your roof around fifteen years old, but depending on the type, it can vary slightly. Humidity and severe weather can also impact the lifespan of your roof. As a landlord, it is essential to have regular inspections of your roof so that you are less likely to get calls from your tenants about leaks. It is also cheaper for you to have these inspections than to deal with a problem after it occurs.
Further, a quality roof can boost the attractiveness of a property. Not only does it help curb appeal, but the tenant will feel more secure knowing there are less likely to be problems with the roof while they live at the property. When revamping your rental property to add value, it is essential to focus on the right improvements for your property. Some renovations are more impactful than others, and making the wrong move can be harmful and expensive. That is why it is beneficial to consult professionals who can guide you to the right decisions. Further, working with a company to improve your property also frees up more time for you, so you can focus on things other than the time-consuming projects involved in upgrading a property.
If you want to purchase a rental property or looking to add value to an existing property, The McLemore Group can help. Their expert team can help you find the right property for you, assist with the best ways to capitalize on your investment, and make your rental property stand out for prospective tenants.
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Kevin McLemore is a second generation real estate broker, having grown up in the business. The McLemore Group is centered around the strong bond that Kevin has with his father, Dan McLemore. They have been working together selling land, homes, and commercial projects for over 20 years.
Kevin specializes in helping sellers of unique properties get maximum value for their property with as little headache as possible. He has brokered transactions throughout the greater Charlotte region including the upstate of South Carolina.
Copyright © 2024 The McLemore Group - All Rights Reserved.