The most common mistake homeowners make when deciding to place their homes on the rental market is making upgrades that they would like to have in their own homes. These types of upgrades, however, rarely pay off in the long run and can be costly to repair. For example, a renter, who has no real financial stake in the property, damages the new counter-top, and you now have to repair granite.
As a businessperson, you need to make the best return on your rental investments. You know it “takes money to make money,” and your rental home represents a huge investment.
Your rental property’s appeal dictates the amount of rent you can expect, so you want to optimize your home’s marketability to maximize the return on your property. You know you need to upgrade some attributes of your property, but which upgrades make the most sense? Should you paint the exterior? Replace carpeting with hardwood and tile? What about granite counter-tops? Upgraded cabinetry, new lighting, or a finished basement?
Are your existing counter-tops tired, full of cuts, or permanently stained? Did you know that there is a product you can purchase that allows you to “paint” the counter-tops to a like-new appearance?
Do you have dingy bathrooms? Consider a quick linoleum replacement, new caulking, and a new vanity and faucet. Even replacing the fixtures, face plates, and lighting can quickly liven up a space and bring a more modern look to any room.
Keep in mind that when you own an investment property, upgrades may be tax deductible (consult your Certified Public Accountant).
So what can an owner to do to increase the rental rate on the property? What about appliances? Should you go with stainless steel? A better idea is to purchase a package deal through The Home Depot for a mid-level refrigerator, stove, and dishwasher, and then market your property with an upgraded kitchen.
Real Property Management has the expertise to guide you through upgrades and corresponding rental increases you could enjoy as a result. Let our experience and guidance become your next upgrade.