While many residential real estate investors place a key focus on generating income, it is just as important – if not more – to increase the value of your property(ies). One reason for this is so that you can ultimately increase the amount of rent that you charge.
But there can other nice benefits, too, such as:
- Increasing your total borrowing power
- Attracting a high caliber tenant (who may want to commit to a long-term lease, in turn, allowing income to continue rolling in and keeping you from having to search for new tenants on a regular basis)
So, what are some of the key methods of raising your investment property(ies)’s value? Here are a few of the top picks:
- Make any and all needed repairs and improvements. If your property still contains color patterns, carpet, and appliances from the 1990s, then it may be time to make some updates and repairs. But don’t just stop at the bare minimum. Tenants and potential tenants can usually tell when a landlord genuinely cares about his or her investment – and their home. And in many instances, they will be willing to pay more for a property that not only fits their needs from a size and location standpoint, but also one that is clean, updated, and functional.
- Increasing the rentable square footage. Another possibility for raising the value of your rental property is to increase the amount of rentable square footage. While this could mean adding an additional room or two, it doesn’t necessarily have to entail anything that elaborate. For instance, you may easily be able to convert a breakfast nook into a home office – which can be exceptionally appealing in today’s work-from-home environment.
- Consider adding a few extra amenities. Added amenities can also raise the value of your rental property. For instance, putting a washer and dryer into the home or unit could provide tenants with convenience that they’re willing to pay more for. Likewise, if there is room in the driveway, adding a carport can keep tenants’ vehicles out of the rain and the hot Central Florida sun.
If you’re looking for ways to run your investment property business without it consuming too much of your time, hiring a property manager could be the answer. So, if you’d like to learn more about how an experienced property management team can make your life easier, just contact us today.