Owning and managing a rental property comes with its challenges: maintenance and turnover being one of the biggest ones. But with a little effort, there are a few small, simple and effective ways you can add value to your rental property and thus increase your monthly income.
- Enhance your curb appeal.
First impressions matter. Simple adjustments like window treatments, painting the house, exchanging the mailbox for a new one, or landscaping can add a ton of value to the rental property and increase interest.
- Add good lighting.
Well-lit spaces look bigger. Painting the walls a lighter color, opening up windows, and adding LED lights can make the room seem bigger in size and more inviting all at the same time.
- Advertise well.
Taking great pictures (good lighting) at the right angles can greatly increase the sell-ability and attractiveness of the home.
- Price your rental property appropriately.
Look at the comps in the area and make a sound decision about how much to list the property. If you are unsure, price it higher instead of lower. If you price it too low and someone agrees to a lease agreement, you have to honor that amount; whereas, if it’s priced too high, you have the freedom to adjust down.
- Stagger your pricing.
Providing multiple options for leasing terms is always a good idea, just make sure you price them accordingly. If you offer one year, 6 months, and month-to-month terms, your one-year term should have a lower monthly payment and your month-to-month option should have the highest payment.
- Allow for pets.
In a single-family home, this greatly increases your number of prospects and you’re able to charge a non-refundable pet fee and monthly pet rent. It is wise to set pet limits and make restrictions where you see fit.
- Proactively maintain your rental property.
While regular inspections (6 months or yearly) are a good idea, don’t expect or rely on your tenants to fully maintain your rental property. Scheduling routine gutter cleaning, HVAC maintenance, and checking all of your systems between tenants can save you thousands of dollars. You don’t want things like leaks or cracks to go extended amounts of time without being repaired.
Lastly, be a good landlord. The most difficult part of owning a rental property is finding tenants and if you can keep the ones you have, that would be ideal. Be quick about repairs, friendly through communication, and available to solve any problems or answer any questions. Contact BT84 Commercial Capital and Business Solutions for your financing questions and needs.