The rental market is very hot right now and in most cases you can easily rent your property without any major improvements. But with interest rates at all time lows it may make sense financially to take advantage of these historic rates.
Improving your rental property will help you find quality tenants and if you expand the size of dwelling it can have a significant increase in rent. As a landlord you want to find the best tenants and avoid churning each year. For most landlords the ideal tenant is a family. Appealing to families is not difficult; it just takes focus. Think about what rooms of the house are important to a reliable family.
Start with the Bathroom
Bathrooms are possibly the most used rooms in a home. Most rental properties that are sized for a family will have two bathrooms. Both should be appropriate for their intended users.
A well remodeled master bathroom will appeal to the parents (you know, the ones paying the rent). Don’t go overboard on cost, but do update the bathroom fixtures. Install a good sized tub for baths and two sinks. This will make the bathroom efficient while parents are getting ready for work and effective when mom wants to soak in a bath.
The kids need nice fixtures, but you can get away with spending less than you did on the master. You only need a single sink, a modern toilet and a shower/tub combo. Little kids like baths, so a shower stall simply will not do. Otherwise ensure that the materials that you are using are nice so that you can appeal to a family with a reasonable income, but not so nice that you are throwing money away. After all, you do not live there.
As important as flooring and trim are, focusing on the areas of the house that matter to families is a good way to make a quality tenant put in a rental application with you. You can rent out houses or condos. Be aware that a condo will require a monthly fee in most cases—which raises your operating costs—but will require less maintenance down the road.
The watering hole
The kitchen is something homeowners always want to be updated when they are looking to buy. It is a sure fire investment. It has been found that in the San Diego area when &17,928 was invest in a kitchen remodel there was an extra $27,000 added to the resale value.
You should upgrade:
- Cabinets
- Appliances
- Switch to Natural Wood or Stone Floors
- Add Stone Countertops
Overall Maintenance
What is the use of a beautiful new kitchen or bathroom if the foundation is compromised. Home buys don’t want to buy a new home that needs a new roof or other big maintenance problems. Eliminate a possible roadblock from someone buying your house by taking care of all of these issues before you do aesthetic renovations. Don Sever, a general contractor of 18 years and president of Server Construction notes,
“I’ve been in a lot of houses where people are spending thirty or forty thousand dollars to remodel the kitchen, but then you walk into the basement and there’s a musty smell because water is leaking through the foundation. To me, it’s more important to resolve those items first, and get the luxuries later.”
Curb Appeal
Don’t underestimate the power of curb appeal. First impressions are everything. Dick Gaylord a realtor of 27 years remarks,
“If people drive by your home and are not impressed they’re not going to walk inside.”
So spruce the outside of your home with some new paint and landscaping.
Whether or not your planning on selling your property right away consider making these changes to your home so that your resale value increases.
Contact SOS Management & Property Services
Local: (858) 273-8800
