One of the most common questions we hear at Civitas Property Management is: how do I get the best return on investment for my rental property? We’re glad the owners and investors we work with are thinking about this important question.
We have some tips for achieving the best ROI, and we’re sharing those with you today.
Upgrades are Essential
You have probably heard the saying “you have to spend money to make money.” When it comes to rental property and real estate investments, this has never been truer. These upgrades can be as minor as switching kitchen cabinet hardware, installing new modern fixtures, or changing light bulbs. If you want to, you can go all in and change out carpet for new carpet. Or, you can add a fresh coat of paint. If you really wanted to go big you could go as high-end as adding hardwood floors or laminate flooring and stainless steel appliances and new counter tops. These things would really get the attention of great tenants and increase your rental value.
Supplying your rental property with clean and functioning appliances is also really important. If you decide to not include appliances in the rental, it is much harder to rent out the home. If tenants need to supply their own appliances, they will also be taking those appliances with them when the lease ends and they move. If you decide not to maintain the appliances currently in the home and they do need to be replaced, that tenant will take them again when they move. So either way, you are going to have to replace them at some point while you own your rental property. We recommend you provide clean, modern appliances at the beginning of the leasing period.
Keep Your Rental Property Clean and Fresh
There are many options for making the house more modern and clean. We definitely suggest having the carpets steam cleaned and the entire unit professionally cleaned. A good cleaning crew will pay attention to details. You want the baseboards scrubbed and the ceiling fans dusted. Pull the appliances out from the walls and clean around and behind them. The windows and screens outside should be cleaned as well. This will definitely help the house gleam and glisten and look brand new.
In the bathrooms, we recommend changing out the caulking around the tub and toilet. A new shower head should also be installed and new fixtures and lightbulbs should be added. These are minor changes that can really make a huge difference in the bathroom and enhance the look of the home. Ultimately, these things will earn you more money.
Upgrade to Smart Appliances
Another great way to get the most ROI out of your rental property is by installing some smart appliances. These things are popular among residents, and it could mean installing a nest thermostat, ring video doorbell, or smart outlets which include USB ports for charging phones, cameras and other electronic devices.
If you have any questions about how to increase the ROI potential with your rental property, we’d be happy to tell you more. Please contact us at Civitas Property Management.