Wouldn’t it be nice if you could enjoy a greater return on your rental property investment? Improving your ROI is about more than just increasing the monthly rent. By making small changes and improvements to your rental property, you can improve the quality of the tenant you attract, reduce overhead, and enjoy a more profitable real estate investment.
Consider implementing these rental property investment tips with your property.
1. Charge an Application Fee
Using an application is a simple way of deterring applicants who aren’t serious about renting your property. It can also cover the cost of running background and credit checks. Charging an application fee for your rental properties increases your ROI by reducing unnecessary costs from running these checks on applicants who aren’t serious. It also reduces your out-of-pocket costs for running checks on serious applicants. Finally, running these checks helps you do a thorough check on applicants so that you can check a higher quality tenant, which increases your ROI in the long run.
2. Add Smart Home Features
These features may have a cost for installation, but they can increase your ROI in the long run. Having smart home compatible appliances and technologies can add value and desirability to your rental home. Renters will pay more to have the latest features like voice controlled lights, appliances, garage door, and thermostat. Replace the light switches and plugs throughout the home. Change the thermostat to one that’s smart home compatible. Over time, you can replace the appliances with smart home abilities.
3. Replace the Hardware
This is a simple and small accent to your home, but it can make a big impact. Replacing outdated hardware on the kitchen and bathroom cabinets or replacing your door handles can refresh your rental home. This easy improvement is one you can do yourself, and there are hardware options for every budget.
4. Landscaping
People form an opinion about a home in the first 30 seconds of viewing it. Because of this, homes with curb appeal command a higher rental rate. You can improve your curb appeal by filling in the holes in the grass, trimming the bushes, and adding flowering plants. To keep maintenance costs down, choose native plants that thrive in the climate on their own. Slow-growing plants are also a good choice because they require pruning less often.
5. Include a Utility
Offering an additional utility in the rent can be an attractive plus for tenants that are on a budget or are comparing your property with others. Electricity and water are risky if your tenant doesn’t control their usage. Limit your risk by putting limits on the amount of the bill you’ll cover. Another option is to include the internet and cable. These are steady bills every month, no matter how much the tenant uses them. If you have multiple properties, you may be able to negotiate a discounted rate with the provider.
6. Do Competitive Research
When was the last time you looked at the local rental market? Keeping tabs on the current market conditions can help you make the most of your rental property. Finding out what other local landlords are doing and offering can help you stay competitive with your rental properties. Work with an experienced property manager who can give you a complete picture of your rental property’s market.
Try These Rental Property Investment Tips
By making strategic changes to your rental property, you can improve your ROI. Some of these changes are simple policy changes, while others require a bit more of an investment. Working with a property manager can help you to prioritize which changes and improvements will help you the most.
Work with our skilled property managers today to improve your ROI.
