Owning rental property is a delicate balance. On one hand, you want to attract and keep renters that will value your property and pay their rent on time. But on the other hand, you want the maintenance of the property to be affordable enough that you are still making money on the investment. In order to achieve this balance, there are some things that you can do between renters in order to increase your bottom line without breaking the bank.
Would You Live Here?
After a renter leaves, it is important to assess the reason that they are leaving. If they are simply moving on to bigger and better things, there may not be much of a problem. However, if renters are constantly having trouble paying their rent, or neighbors are complaining about noise and smells coming from that apartment, the problem may actually be the quality of renters that you are attracting.
In order to attract a better quality of client, start by considering the physical condition of your property, and asking yourself if the property is somewhere that you and your family would feel comfortable living. In order to improve the aesthetic appeal of a property, small changes can make a huge difference. Stained carpeting and low-quality paint jobs can actually lower your potential for attracting higher end clients. In order to improve the condition of the apartment, look at replacing the carpeting with tile or laminate flooring that can be easily cleaned between renters, and having the walls painted by a commercial painting service. These two things can greatly improve the attractiveness of the property to potential renters.
Offsetting the Cost of Improvement
The biggest challenge to upgrading the appearance of your rental property is that it is a bit counter-intuitive to spend money when you are trying to make money. However, if you are trying to attract a higher class of renter, needed upgrades can make a huge difference, as well as allow you to charge a higher premium for rent. For example, if you are accustomed to only doing touch-up painting after a renter leaves, it may cost you twice that much to have a professional painter come in. However, you may also be able to add an additional hundred dollars to the rent, if the interior of the home is well painted. This difference in monthly income may be able to not only offset the cost of the professional paint job, but also bring in additional income if the new renters stay for any length of time.
Making a few simple upgrades to the quality of your rental property's appearance can enable you to not only attract a higher-end client, but make more money as well.