An interesting article…
Make Your Investment Property More Appealing with High Return Updates
By Shirley Martin
Improving the appearance and functionality of rental properties is the best way to charm tenants and keep occupancy rates high. Consistent renters equal consistent income, and high-return updates promise more cash in your pocket. Here are some ROI-friendly ways to update your property.
Form an LLC for Business Purposes
Before investing in your properties, consider forming an LLC to protect your assets and garner tax benefits. Avoid expensive lawyer rates by filing online or with a more affordable formation service. States have different rules, so read up on forming an LLC before moving ahead.
Once you establish an LLC, document your expenses for each property and keep records of all paperwork, contracts, and earnings. Managing paperwork is an essential part of running a business, and it can help you secure tax advantages.
Boost Curb Appeal
Boosting the curb appeal of your rental property is crucial to attracting prospective tenants. Consider adding a fresh coat of paint or a new front door to make your property more visually appealing. Landscaping, adding outdoor lighting or installing house number plaques can also significantly enhance the curb appeal of your rental property.
Add Some Unique Artwork
Adding unique artwork to your rental property can enhance its aesthetic appeal and provide a personalized touch for your tenants. It's a cost-effective method to differentiate your rental from other properties, potentially attracting more renters and increasing your rental income. Visit Lisa Carney for beautiful and original abstract pieces.
Overhaul Outdoor Green Spaces
Comfortable outdoor areas are an excellent way to attract tenants, especially in cities. Even with a small backyard, additions like a small deck, grill area, and lighting can transform outdoor spaces.
Greenery is always a welcome addition, especially when it’s low-maintenance. Before purchasing plants or plotting a garden, consult online gardening experts for advice — visit Home Garden Hero. Choosing the right foliage is essential for ensuring a pleasant garden year-round.
Consider an Appliance Upgrade
Upgraded appliances can be a significant selling point for tenants. As a property owner, new appliances may also save you repair costs over time, making them a smart investment. There are a few other points to consider, too.
For example, adding laundry hookups could offer a higher return on investment in your rental. Especially if similar rentals lack this amenity, your property could garner more interest—and require a higher rental rate—due to the convenience.
New appliances also save money on energy bills, says Consumer Reports, which saves money for whoever pays the utilities at your property (whether you or the tenant).
Invest in Good-Quality Flooring
Though landlords must keep flooring in good repair for their tenants, sticking to your state’s minimum requirements on carpet cleaning and replacement may not delight renters. Cleaning alone can become expensive, and replacing carpets can be time-consuming, messy, and costly.
In most cases, property owners must replace rental-grade carpeting after five to seven years. Installing wood, tile, linoleum, or vinyl flooring could offer a greater return on investment—and a longer useful life.
Plus, non-carpet flooring could make your rental pet friendlier (with less work on your part between tenants). Accepting pets can also support higher rental rates or monthly pet fees.
Explore a Kitchen Renovation Project
Kitchen renovations are one of the highest ROI projects for homeowners. For investment property owners, the benefit is similar; a new kitchen can attract good-quality tenants and consistent monthly income.
Paired with fixes like plaster repair for walls and ceilings, a kitchen reno can transform a property. Updated apartments and homes also support higher rental prices—and help the property look great in photos.
Before you start tearing kitchens out, check out nearby rentals; the market may not support higher rent if there are no comparable updated properties nearby.
From boosting curb appeal to completely remodeling the kitchen, the cost of renovations can create long-term financial gains for investment property owners. There are no guarantees, but a good-looking and functional property is always the best way to maintain profit in the rental market.