Your rental is your income and as such you want to keep it looking great. You’ll also want to make sure you have all the latest features to get the most in rent each month. There are some basic improvements that are better for getting you a big return than others. Knowing which updates pay off the most is the best way to make sure you are getting the most for your money.
This is a simple upgrade that is going to get you more money every time. Upgrading things like kitchen appliances, washer and dryer, and even simple things like the water heater can help you make a ton of money back. Upgrading appliances not only offers your renters better quality of life, it also makes your rental look more up to date and desirable. This means you can charge more each month than you could with a rental that has appliances from the 90s.
The next best thing you can do to improve the overall quality and price of your rental is to upgrade flooring. Something like laminate, synthetic wood, or even hardwood floors through your rental do a few things. For starters it makes your rental look more expensive. It also eases cleaning and makes for a more cohesive unit that is better put together and that more people are going to want to rent. When someone looks at a rental that has old and stained carpet they are less likely to want to rent whereas hardwood throughout is going to increase the value and overall look of your rental.
Consider the Outdoor Space
You also want to keep the outdoor space in mind. If you have the means, perhaps fence in the yard, work on the patio, or add something appealing like a seating area or some great landscaping. Curb appeal can make a property worth a ton more and can help make your rental look more expensive again. This is a simple fix that does not cost a ton but that can have a big return. Doing things like fencing in the yard may attract families with kids that like to play outside or people that like privacy and want a secure yard.
These are all basic upgrades that are going to help command more rent each month and attract higher quality tenants. A good property management company such as AZ Residential Management can help advise you on the best upgrades to maximize your return on investment.
As a landlord, you’re likely looking to get as much back from your real estate investment as possible. But simply raising the rent each year isn’t a tactic that will work long term. In order to get more income from your rental property, you need to do these things:
1. Improve and Maintain Your Rental
Rentals that are in excellent condition will attract higher quality tenants and give you the option of charging more for your rental. High income tenants are less likely to rent places that are in disrepair or that look unsightly. Spend the time and money to take care of all necessary repairs before you rent. Be detail oriented, just like your potential high quality tenants will be. From making sure the doorknobs are screwed on tightly to ensuring that the HVAC system works, when you improve and maintain your rental, you’ll be able to get more income.
2. Add Value to Your Rental
Tenants are willing to pay more for rent when there is added value to the rental.
Adding value to your rental is easier than you think. Simple upgrades like new countertops, fresh paint and updated carpet / flooring are easy starts. You typically get the most bang for your buck with upgrades to your kitchen and bathrooms. This is where it can really pay off and help you get higher monthly rental prices. Another good tactic is to hire a property manager to care for the rental. The property management company adds value for you, as well as to the tenant. When you hire a property management company such as AZ Residential Management, your tenant is equipped with a direct hotline to maintenance services 24/7. Other simple and inexpensive ways to add value to your rental include lawn maintenance services, complimentary newspaper delivery, free Internet access, and such. These are small things for you to offer, yet represent extra value for which potential renters are willing to pay more.
3. Deduct All Your Expenses
There are significant tax benefits to owning a rental property, yet many landlords don’t know enough to take full advantage of their legal entitlements. A property management company such as AZ Residential Management provides landlords accounting statements that include a detailed breakdown of all your landlord and rental expenses. Remember, even the cost of the property management company services is a tax deduction! When you successfully include all your deductions on your yearly tax return, you’ll find that you get to keep more of the income from your rental property.
AZ Residential Management is here to help landlords navigate the sometimes tricky world of rental property. Make being a landlord easy on yourself. Contact AZ Residential Management today for free, no obligation information about everything we offer for landlords in and around Mesa, Arizona.