Renting is a competitive market and that can sometimes lead to reduced incomes for landlords and lettings agencies. In order to bring in the maximum possible return, you have to box clever, but how do you do it? Can it be done on a tight budget? Take a look at these five easy and affordable ways to add value to a rental property to find out more.
Keep it Well Maintained
When a potential tenant has the choice between different rental properties, how well maintained a house or flat is makes all the difference. In fact, renters often don’t mind paying more if they know they will move into somewhere that is well looked after.
If someone looks around a property and sees issues, that is an immediate red flag. Dripping taps, scratched skirting boards, flaking paint and broken drawers all suggest that no one cares for the house. The renter cannot be confident that any of their problems will be sorted in future if they move in.
When looking around a place that is properly managed, they can concentrate on visualising themselves living there.
Executive Property Management Solutions offers a comprehensive management service, ensuring that everything works perfectly. If you market a property like that, you can afford to increase the rent, knowing that it has an advantage over the competition.
Concentrate on the Important Areas
One of the easiest ways to add value to a rental property is to give it a complete decorating overhaul. However, you can’t always afford to do that between every tenant, so you should concentrate on the important areas.
The kitchen and bathroom are the set pieces in every property, and these need to be at the top of their game. Tenants can put up pictures and add in large furniture to living rooms and bedrooms, making their own mark. But the bathroom and kitchen don’t generally change from the day they move in. They can’t disguise tired and marked work surfaces or cracked tiles.
If these two rooms gleam, they appeal to more renters, adding value to the home. Of course, that doesn’t mean you can let the other rooms deteriorate, just direct the lion’s share of the budget at the kitchen and bathroom.
Think Blank Canvas
You know how you like your house to look, but everyone is different. Wild 1970s patterns may float your boat, but splashing the walls with orange swirls and brown flowers narrows your audience. Think simple and universal. Aim for a blank canvas that people can add their photographs and nick nacks to. A wider appeal means more potential custom, which equals added value.
Target Specialised Markets
Rather than aim for the same potential tenants as everyone else, could you appeal to a niche? Who isn’t being served as well as they might? If there is little supply for a demand, you can push up your price.
Maybe your property is near a university. If so, you could cater for house shares, where each room is its own separate rental.
You could also consider allowing pets. You can do this at no risk to yourself financially. Simply ask for a separate pet deposit in case of incidents. This opens you up to a customer base that struggles to find enough properties. They also expect to pay more in rental due to their situation.
For this type of rental, it is important to put together a watertight tenancy agreement so everyone knows the deal. See the Making Lettings Easier page to find out more about this and our other property management services.
Another option, although one that requires more of a layout, is targeting multi-generational households. Often a grandparent moves in with their children and grandchildren. Could you convert a room or floor into a self-contained granny annex? Not one of the most affordable ways to add value to a rental property, but certainly an idea.
Offering extra services or facilities can also increase your appeal and, therefore, your return. It doesn’t have to be anything huge, but if you can add internet access to your package, it helps. Anything that makes a tenant’s life easier certainly adds to the appeal of your property. It’s worth thinking about the small details that allow you to increase the appeal and value of your rental property.
Help Finding Ways to Add Value to a Rental Property
If you need more help adding value, get in contact today. We can look after as much or as little of the management of your properties as you like. If you have specific requirements, just ask.