Investing in real estate is a profitable venture, but turning a property into a successful rental takes more than simply listing it online. You have to give it an edge over other rentals and make smart decisions that can help the property appeal to tenants. Regardless of whether you are a first-time buyer, take a look at these recommendations.
1. Check the Competition While you might already have a vision in mind, knowing what nearby landlords are offering can be invaluable. After all, it may inspire you to make adjustments or give you a different perspective on what to charge for rent. You may have a set goal, but if other landlords charge less, your investment could be at a disadvantage. This is especially true given that rental prices are influenced by many factors, including location, market value, and features. Also, consider how competitors advertise, use photographs, and describe their properties. If your rental is a short-term or vacation rental, there are other factors to include in your marketing. In Chicago, proximity to parks, schools, dining, shopping, and museums can make your property stand out above the rest. 2. Get to the Basics Your home may be ideally located, but it's the basics that can convince a tenant to sign up. They want a finished product and will notice peeling paint or dirty carpet. So, take a few steps back and determine what needs addressing. Does the house feel unsafe or exposed? Putting in solid locks and a security system can put tenants at ease. Is your property's curb appeal lacking? Then give the front door a fresh coat of paint, or add flower beds to brighten things up. Are there noticeable odors or grime? Thankfully, Self explains that doesn't have to be a chore, either, as the tried and true household staple baking soda can be an effective solution. 3. Renovate the Bathroom As you deal with the basics, consider what more could be done to enhance areas like the bathroom. Of course, remodeling can be a serious investment, so ask yourself what would most appeal to prospective renters. Then, build your budget around that vision and make adjustments where necessary. In particular, compare prices online and check places like eBay or Habitat for Humanity's ReStore for affordable options. With this approach, you could put in new fixtures, toilets, or even a bath without splashing the cash. 4. Transform the Kitchen Upgrading a kitchen might sound like an expensive project, but it doesn't have to break your budget. CNET notes even simple changes such as a new color scheme or switching out cabinet knobs can make a room appear fresh. Likewise, if your kitchen's flooring leaves a lot to be desired, a costly overhaul isn't necessary. Instead, you could use stick-on tiling to create an entirely different, up-to-date look. Similarly, if there's limited storage, use vertical space by adding peg boards to walls, or shelving to the sides of cabinets. Your upgrades can be highly creative, yet these inexpensive additions could widen your property's appeal. 5. Provide Appliances This tip is exclusively for long-term rentals, as appliances should always be provided for vacation and short-term rentals. Even if a tenant is planning to bring their own appliances to the property, it doesn’t hurt to provide options. While new appliances may seem expensive, they could reward you with higher rent and increased competitiveness. Once you have selected your appliances, consider including them in your tenant's rental agreement. By having an inventory written down, you can keep track of what's in your property and ensure that the appliances stay in good condition. There is nothing more satisfying than turning one's efforts into a success. So, check your competitors, create a well-designed environment, and focus on the basics. In no time, your rental can become a solid investment over time.
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AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
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*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
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