As a real estate investor, your goal is to make a profit. To do that, you need to manage your expenses and increase the revenue coming in each month. To be able to attract potential tenants willing to spend top dollar for rent, you need to make sure your home stands out.
But that doesn’t mean you need to go out and spend thousands of dollars to increase the value of your home. Instead, here are five ways you can increase the value of your rental property without breaking the budget.
Boost the Curb Appeal
The outside of your home is the first thing a potential tenant or buyer is going to see. If it lacks excitement or is starting to show its age, then any upgrades done inside the house won’t matter.
This doesn’t mean you need to spend thousands of dollars to have your house painted. You also don’t need to rip out your landscaping to start over. Instead, little things can make your home pop and help attract renters or buyers.
Start by power washing the outside of your home. This will help remove years of dirt and grime that might be showing the home’s age. Next, consider the focal point of almost every house – the front door. If it’s in good shape, try painting it and adding new hardware. Another idea would be to add window boxes underneath the front windows. These can be purchased from a local home improvement store or you can build them yourself. The end result will be an attractive new addition to the front of your rental property.
Paint the Interior
Painting the interior of your rental home is something that can not only increase the value but also attract potential tenants. Dirty, scuffed up walls will happen over time but will also be a major turnoff to most people.
Choose neutral colors since these will appeal to a wider audience. Grays or different variations of beige and white are great choices throughout the home. If you’re not in a rush, purchase your paint around Memorial Day, Independence Day or Labor Day. Home improvement stores frequently run sales on paint, which can help save you money.
Give Your Kitchen a Refresh
Updated kitchens can drastically increase the value of a home. Unfortunately, updates can also come with a high price tag. Luckily there are a few things you can do to give your kitchen an updated feel without costing a fortune.
Kitchen cabinets can be a big investment, which means replacing them might not be an option. Instead consider giving them a fresh coat of paint or even replacing the doors. New cabinet hardware can also help make a big difference in the look and feel of the space. Adding a backsplash is another cost-effective way to make a big change to your kitchen.
Washer and Dryer Can Make a Difference
Something that is high on the wish list of renters are a washer and dryer. In most cases potential tenants are even willing to pay more in rent to have the added convenience.
Both a washer and dryer could be purchased for less than $1,500. That means you can pay off the investment in less than two years. After that, it’s pure profit.
Make Your Home Smart
Smart technology is growing on the list of things buyers and renters are looking for in a home. Adding smart devices like thermostats, carbon monoxide and smoke detectors, garage door openers and door locks all can be a big draw to anyone looking at your home.
Many times, these smart devices are not going to raise the paper value of your home. However, they are going to make it more appealing. This can drive up the rent new tenants are willing to pay.
Have you made improvements to a rental property that’s helped increase its value? Let us know in the comments below.
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