Rental property owners should always be thinking about how they can increase the value of their property. Improvements don’t have to break the bank to make a difference.
Simple things like preventative maintenance and general property management will increase the value of a rental building and decrease tenant turnover. It will also give owners the opportunity to charge higher for rent and attract new tenants, all of which will help their bottom line. Here are 6 easy ways to increase the value of a rental property.
Update Curb Appeal
Your rental doesn’t have long to make a first impression. Potential tenants are more likely to be drawn to a property that looks put together and taken care of. Aesthetic improvements such as power washing, repainting window shutters & doors, and landscaping, are inexpensive and will go a long way.
Additional ideas to step up your curb appeal and attract tenants to your property:
Plant new grass.
Paint the exterior.
Trim back trees and shrubs.
Install planters in front of an apartment building.
Pour new concrete or install new pavers or bricks.
Prioritize preventative MAINTENANCE
Perhaps one of the most important ways to increase the value of a rental property is by conducting regular inspections and maintenance. A key way to increase returns is through preventive maintenance. Small things like changing filters, cleaning off A/C compressors, and clearing gutters will save owners thousands of dollars in HVAC and foundation repairs. Providing thorough maintenance between tenants and with current tenants can go a long way with lease renewal and increasing referrals.
Add Popular Amenities
Amenities are highly sought after by tenants. To keep up with the competition, owners can do things like:
Invest in quality washers and dryers and make the space as inviting as you can. Adding tables or offering free wifi can help even if the room is unfinished.
Make sure the rooftop space is kept clean and reflects that it is looked after. Adding small items like chairs, benches or flowers make the space more appealing and worth more to prospective tenants.
If there isn’t a rooftop/patio, build out a communal garden area. Depending on the size, include a seating area for residents to enjoy or allow them to grow their own plants. It creates the sense of community that many tenants look for and is a great asset for increasing the rental value of a property.
Maximize existing spaces. If the building has a basement that just needs to be cleaned out, do so, and then make storage available to tenants.
Focus on pain points
Property pain points go hand in hand with preventive maintenance and should be a priority for owners. Common pain points include:
Kitchens: replace old/outdated appliances and increase appeal by update counters, old wallpaper, and even cabinet knobs.
Bathrooms: faucets and pipes go through normal wear and tear so its important to maintain them before they turn into a larger problem.
Windows and Roofing: leaky or run down windows can be a deal breaker for tenants. Swapping out old windows/roofing not only improves the look of your property but also help lower the cost of utilities.
These kinds of upgrades can be marketed to attract quality tenants and will reduce tenant turnover. Additionally, it gives owners the opportunity to charge higher rent since they will have a higher quality product.
Always Evaluate the Market
It is important for owners to know what their property is worth at all times. Property managers are skilled in market evaluations and can help you price your property correctly. If you’re an owner in need of a rental valuation, you can request a free rental proposal from PRG Management. Learn More ⟩
In addition, rental season fluctuates so owners should price units accordingly. Fewer people are looking in the winter so offering a prorated discount is a wise choice and will bring in more prospects. Then, once renewal comes along, increase the rent back to the normal, non prorated amount. When doing this, it is important to make sure the tenant is aware that the price will be increasing. The increase should still be in line with the market and not be so much that it pushes the tenant to leave.
Screen & Communicate with Tenants
Fixing up a rental property won’t go very far if tenants are unreliable. This is where a property management company comes in handy, as they have access to the top screening technology. Doing credit checks and basic background checks will help owners find reliable tenants and decrease turnover.
Additionally, it’s important to communicate with current tenants. Keep them in the loop when building maintenance is being done and let them know they’re being heard and are a priority. When a service request is submitted, they should be responded to so they know it’s being worked on. A frustration that tenants express is when they’re left wondering whether or not a message was received and what’s being done about it. By prioritizing communication, owners will cut down on turnover and will increase referrals.