One of the biggest questions most landlords face is what the rental rate should be. Setting the rate depends on a variety of factors including the location of your property, current demand, and market value. But that doesn’t mean your hands are tied in terms of making more money. If you want to increase the value of your rental property for either resale or to issue a rent increase, keep reading. Here we’ll cover five ways to make your property more attractive to prospective renters.
1. Give It a Face-Lift
One of the fastest and easiest ways to add value to your rental property is by sprucing it up. Whether the property is old or just in need of some major TLC, giving the property a face-lift can help attract higher-paying tenants. It’s also more attractive during walkthroughs and showings. When the property looks neat, clean, and well-maintained, tenants are more willing to pay top dollar. The good news is, these changes are fairly simple and relatively inexpensive. A new paint job goes a long way. Freshen up the paint in the main living areas and bedrooms. Give the property a thorough cleaning and make sure there are no visible stains, cracks, or areas in need of repair. A property that smells good and is warm and welcoming, is much more likely to land quality tenants who will also care for it as if it’s their own.
2. Renovate the Common Areas
In addition to maintaining a clean, well-kept property, it might be worth investing in some upgrades and remodelling. The two main areas renters look at are the kitchen and bathrooms. Do a quick check of both these areas including appliances, countertops, faucets, and cabinets. Replace anything that is in disrepair or visibly worn. Not only can a newly renovated kitchen or bathroom allow you to bump up the monthly rent but it may also reduce letting turnover. Happy tenants are more likely to stick around for several years at a time. This means less legwork for you to find replacement tenants and fewer months of vacancies. If you choose to pay letting agent fees, a professional can help you set your rates and decide on which areas of the property to renovate.
3. Add On or Up
Take things one step further and add an addition to your property. One quick way to add rental value is by adding an additional bathroom -- especially off the master bedroom. This is known as an ensuite and is a desirable feature for many renters. This is also another beneficial feature if you’re a landlord renting a room in your house and want a little more privacy. Some wealthier clients are also willing to pay extra for added facilities. If you’re letting a property as a long-term investment you might want to add more rooms by building up or out. Add a level or extra rooms of the back of the house. Just be sure to check with local building officials and get any necessary permits.
4. Know the Market and Target Higher Paying Tenants
Certain locations and types of property attract wealthier tenants. If you’re looking to increase rental value, invest in a property that’s big enough to house multiple tenants or tenants with big families. One such property is one with a “granny annexe” that allows for multi-family and multi-generational living. Properties in higher-end neighbourhoods also yield higher rent and higher revenue. It may be worth paying letting agent fees to get a better insight into ideal renters and how to attract them.
5. Add Amenities and Extras
Everyone likes getting something for nothing. Capitalize on this by throwing in some additional features and amenities as part of the rent. You can raise the rent to accommodate for these added expenses. An interesting part of the letting process is that for some people it’s actually cheaper than buying. Don’t assume that your renters don’t have a lot of money. Some prefer not to take on the responsibilities of homeownership. They’re willing to pay top dollar for a rental property that has plenty of amenities including a pool, gym, and tennis courts. Other features to include are smart technology, security systems, and updated appliances.
Renovating your property, keeping it clean, and adding amenities are all ways to increase your property’s rental value and attract higher-paying tenants.