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An investment property is a little nugget of opportunity that has the potential to set you up financially for years to come. To make the most of your property, you want to attract the ideal renter: someone who pays rent on time, maintains your property well, and is respectful and easy to deal with.
For this, you’ll need your property in great condition, with the right upgrades to attract the perfect renter. Renovations don’t always need to be expensive or time-consuming. There are easy and budget-friendly design solutions that hike up market value and are sure to attract renters to your property. Read on for more.
What to Look Out For
The famous realtor saying — ‘location location location’ — stands true for a reason. The neighborhood and nearby amenities will play a big role in attracting future renters. If you’re house shopping with an aim to convert your property to a rental, consider additional factors like safety, the school district, parking, and the external appeal of the home.
How to Price Rent
Ultimately, it is amenities, as well as house upgrades and appliances that determine how much you can charge for rent. Check out other properties in the area and align your asking price to the neighborhood standard. A Professional Property Manager will be able to help you decide what a fair price is.
What to Budget For
This is completely dependent on how much you’re willing to spend! DIY hacks and easier fixes will fit into most homeowners’ budgets, while larger structural and mechanical changes will take more time and involve higher expenses. Check out this handy worksheet by Zillow to figure out approximate expenses.
You will also have to keep in mind who’ll manage the house and whether you will bear the responsibility as the landlord or have it professionally managed by a property management company. Managing the property can drive up expenses, so keep that in mind while budgeting. If you’re looking to do this yourself, The Property Management Coach can help you learn the nitty-gritty of becoming a landlord.
What Renters Look For
Play to the market demands by having desirable features set up in your property. These features are sure to attract renters and are the ultimate bargaining chip to price your house higher.
A recent article by Realtor Magazine reported that over 39% of renters were happy to pay more every month if it meant extra storage. Consider space for unwieldy items (bikes, equipment, etc.), as well as everyday essentials like coats and shoes. Hidden storage is a great clutter-free design solution!
Open Floor Plans
An open concept plan can effectively increase the square footage of a small space. Not only will it make the property appear brighter and larger, but an open floor plan is also a buzzword in the interior design space that many renters look for. You want to reduce sightlines and improve the flow between various rooms, which can be achieved by breaking down unnecessary walls or moving furniture around.
Every renter is on the hunt for spaces flooded with natural light, so design your space to maximize that. You could add in windows to target the southern exposure, or just ensure that each room in the property has a window, no matter how small.
Kitchens and Bathrooms
While swanky upgrades and gleaming modular kitchens are prime selling points, don’t underestimate the power of a thorough cleaning. Scrub out the floors, clean the grout, and polish all the hardware. If you’re on a tighter renovation budget, try to ensure all your hardware and cabinetry match each other for a cohesive look. DIY projects like enamel paint can go a long way in changing untrendy colors for bathtubs and sinks as well.
To conclude, a prospective investment property doesn’t need to be fixed up to the nines to make it appealing. Set up a blank canvas that renters can make their own, and fit-out your property with features that increase the joy of everyday living. If you stick to functional yet appealing basics, we have no doubt that you’ll have a monetizable property that will be appealing to renters for years to come.