Is it Time to Upgrade Your Rental Property?

By E-Renter Tenant Screening
Posted on June 3, 2011 under Landlord Tips | Be the First to Comment

While the housing market is still troubled, the rental market is strong from coast to coast. With vacancies low, you might be thinking that you don’t need to do a thing to keep prospective tenants interested in your rental properties.

But being in the rental property business means generating as much rental income as possible. And if you can make your rental units more attractive to prospective tenants, you may be able to attract better tenants and make more income, too.

In fact, upgrading your rental is not an expense—rather, it’s an investment that should earn you a return. Compare the cost of each upgrade with the corresponding possible increase of rent to determine whether it makes sense to do it.

Perhaps you don’t need to completely renovate every rental unit. Think about ways to maximize the rent you can charge, based on size, location and condition of the rental unit, as well as what the competition is charging. Here are some possible upgrades that won’t break the bank, and can push your rent up:

Kitchen: Replacing countertops and painting cabinets will change the entire look of the kitchen. If you’re pursuing a higher-end tenant, replace those old formica countertops with granite. And if the kitchen has tired old oak cabinets, give them a fresh coat of white paint and some new hardware: instant style!

Bathroom: You can easily replace a worn-out vanity with a new one; add a new faucet, a new light fixture and a nice-looking sink—and the entire room changes. If the flooring has seen better days, large tiles are not very expensive; or, install a solid piece of marmoleum to make a big difference.

Outdoors: Spruce up the patio area or add a small deck. Tenants love having space to relax outside.

Invest in New Appliances: There’s nothing worse-looking to a prospective tenant than a dirty or worn out old stove, refrigerator or dishwasher. Look for a good deal on a package—or buy used. You can find great deals on nearly-new appliances on Craigslist.

Closet Space: Find ways to add storage. Tenants love walk-in closets and built-in shelves. Easy-to-install closet systems are available at most hardware stores and they can completely change the look and functionality of every closet.

If you want to attract higher-end tenants—and increase your rental income—these simple upgrades can be a quick and easy way to do it.