Updated December 8, 2020
3 Easy Ways To Increase Your Rental's Value
When you're first using rent prediction tools or rent estimators, you might be surprised to find out that your rental property isn't worth what you thought it was. While you might value your property very highly, not everyone will necessarily think it's worth the same amount when it comes time to pay rent. There are easy ways to increase your rental's value.
3 ways to increase your rental’s value.
Remember Curb Appeal
The easiest way to increase your rental's value for a smaller investment is to focus on how your property looks from the outside. Curb appeal can have a significant impact on the overall value, even without spending much. You'll also likely have more potential renters interested in your property since eye-catching properties are the first ones to attract renters. While curb appeal doesn't directly correlate to a rent increase, tenants do like living in a property that looks nice. By making a few improvements to the exterior, you could ask for more in rent.
Appraisers also look at curb appeal when they are evaluating the home for a mortgage. If the outside of the property is in good condition and taken care of, the appraiser could assume you take care of the rest of the property and increase your rental's value.
Here are a few easy and inexpensive ways to improve curb appeal.
Start with a good cleaning—pressure washing the exterior can refresh the look of the rental even if you don't make any other changes. Be sure to give an attached porch, deck, sidewalk, or driveway a once over as well.
Mulch, mulch, mulch— spending extra time or money to continually weed around any bushes or perennials you have at your property is not how most landlords want to spend their weekends. Instead, take the time and small investment in mulch and give flower beds or areas around trees and plants a good coating of mulch. By going at least 3 inches thick, you'll block out any sun and help prevent weed growth.
Add some planters— placing a planter on each side of the doorway or a porch or deck will add a little decorative look to the outside of your rental. The little extra will draw in your tenants.
Paint the front door— have you ever seen a red door on a home and wonder why they would do that? The point is that it looks nice, and it caught your attention. The same will happen with your tenants when you give your rental property door a fresh coat of paint.
Buy a new entry mat— a welcome mat at the door is a very cliche for a reason; it works. A brand new mat is a little invitation to take a look inside, which you want from your potential tenants.
Location, Location, Location
You might not be able to change your property's physical location; you can at least make the most of the neighborhood and the market expectations for your area. Before you list your property for rent, be sure to check property reports and average neighborhood rents. That way, you know you're getting the most money possible for your rental property without reducing interest in your rental. Make use of a rent prediction tool if you're unsure about what you should be charging.
Each neighborhood is different. You can't compare a property in a new development with an older neighborhood. Running rental reports regularly on your neighborhood and compared to similar properties and amenities will keep you competitive. It will also help you understand if similar properties have a lower-cost addition to help you bring in more for rent.
For example, if other properties in your neighborhood have a shed and are asking $50 more a month, could you add a shed and raise the rent? Or if you have off-street parking and don't, could you earn an extra $25 a month for parking? Keep little improvements in mind based on your location, and you could increase your rental's value.
Initial Investment Costs
If you're looking for a new property to invest in, keep in mind the difference in costs between what you're paying to buy the property and what you'll be charging for rent. A survey by Better Homes and Gardens Real Estate revealed that 96% of people who have invested in real estate believe their decision helped them achieve financial success. However, if you want to make the most out of your potential investment, keep your starting costs lower. That way, no matter what you charge for rent, you'll be able to have significant profits.
Finding the right amount to charge for your rental property can be a challenge, but using these tips to get the most money possible out of your rental can help. For more information or to find rent statistics for neighborhoods near you, contact Rentometer today.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology. If you liked this article, subscribe to Rentometer's email newsletter to stay up-to-date on the latest trends in rental housing.