What are some of the best improvements a real estate investor can make on a rental property in order to increase the rent? How do I, as an investor, increase the value of an investment property so I can raise the rents and also the appreciation of the property itself? Let's find out.
After you purchase a piece of property, you’ll need to think about increasing its value. People want a new and modern looking property and will pay the higher price it demands just to get it. In fact, visual appeal is the main selling feature in real estate, and the right improvements will land you a higher price for the property overall and for how much rent you can charge.
Before you perform any cosmetic makeovers, though, you need to understand the difference between the property and your income value. If the property is to serve as your own residence, then you should make changes that reflect what you want. If the property is to serve as a rental property, the changes should be made with the target audience in mind. And, the materials you use should be ones that are easy to fix or replace if you plan on turning the property into a rental property.
The following list offers several types of “curb appeal” you should consider:
- Replace the gutters, shutters, siding, and/or roof.
- Build a garage or shed.
- Add a fence in the yard if there isn't one.
- Landscaping such as the addition of a garden, trees, walkway, fountain, gazebo, etc.
- Build a deck or porch.
- Pave or repair the driveway.
- Outdoor lighting such as spot lights, flood lights, lamp posts, and accent lighting. Consider the motion-activated types because these add greater appeal.
And those are just a few of the outside improvements you can make—the sky is the limit here. But as we move into the interior of the property, there are also endless options to think about. Use your judgment as to which area might need the upgrade the most, or which area will generate the most profit. Listed are some of the areas you should consider first:
- Kitchen – People love spacious kitchens, especially those that are large enough to accommodate a table or maybe an island. The kitchen will need ample storage and counter space. A kitchen sink is always wonderful, as is a garbage disposal system, double ovens, bar seating, etc. You also need to tend to the appliances and fix/replace as needed.
- Bathrooms – A clean and slick looking bathroom is always comforting. Repair cracks; replace tiles, toilets, and sinks; fix faucets, etc.
- Closets are extremely important. Improve and/or create closet space.
- Basements and attics – These are often added bonuses, and if you can spruce it up just so that it’s attractive, then you can cash in handsomely. For example, just redo the walls and/or floors.
- Windows – If you can replace the windows with double or triple pane versions, then you can add some hefty property value. If this is not possible, make sure the windows are not cracked, can open easily, and have screens.
Read more - Further Property Upgrades