One of the things that you should do before leasing your property is to sit down and determine how you can maximize your profit on that property. By having a little patience and doing a little bit of additional work, you may have the opportunity to make more money from your rental property over the long-term.
We often help our san diego property management clients find ways to increase the value of their property, and in turn the rent they charge. The following are five ways in which you can get more money from your rental property:
1. Improve the property's curb appeal
Curb appeal is important not only to drawing potential residents to your property, but also in helping to boost the value of your home, allowing you to charge more rent. The following are just a few ways that you can improve the curb appeal of your property:
- New Paint - If the paint on your property's siding is beginning to fade, chip or show its age in any way, then it's time to add a new coat. Typically speaking, neutral colors are the least divisive colors you can use.
- Landscaping - Put some effort into not only tidying up your property's yard by keeping the grass, bushes and trees trimmed, but by by adding a few plants here and there where your landscape is particularly barren. Lining your property's walk way with small plants can be an effective way to improve the look of your landscape. Adding flower beds can be a great way to introduce some color to your landscape as well.
- Improve the entrance - The entrance should feel welcoming and inviting - and it's usually the focal point of the house, so consider replacing the door if needed. You could also simply upgrade the paint job and hardware to give it a new look as well.
- Repair the exterior - Make sure that you invest in any necessary repairs. Even if it's something simple like a few broken roof shingles or a loose front porch railing. Small problems like this are more noticeable than you think, and they will hurt your overall curb appeal.
2. Invest in interior renovations
Renovating the property can be expensive, but in the end, it's often worth it. Although there are a few renovations worth doing throughout the house, such as re-painting the walls or upgrading the floors (if your old floors are in need of replacing), there are two places where you should focus the most of your efforts on - the bathroom and the kitchen.
- The Bathroom - A comfortable and convenient bathroom is essential to any resident. You may want to refinish the bathroom surfaces, install better lighting and replace any broken tiles. Consider upgrading some of the fixtures to more water-saving fixtures, such as a double flush toilet, as well. Features such as these are a big draw because they help cut down on utility bills.
- The Kitchen - The kitchen is often the space that leaves the biggest impression - so make sure it's a good one. Repaint or replace your kitchen cabinets and consider upgrading the kitchen floor or the countertops if they are in need of replacement. Small renovations, like repainting the kitchen walls or replacing all of the hardware, can still be effective as well.
You may also want to update some of the appliances throughout your home. If you do this, go for Energy Star rated appliances to make your home more energy efficient, which is a feature that you can use to further promote your property to potential residents.
3. Add more amenities
The more amenities your property has, the more you can charge for convenience. For example, adding amenities that aren't usually necessary but that certainly improve day-to-day living, such as washing machines, dryers, dishwashers, or garbage disposal can increase the desirability of your property and thus the rent.
4. Add revenue streams
You can add more revenue streams to your rent by charging for additional,but optional services. For example, you could offer landscaping or cleaning services for additional fees. You can hire independent contractors to perform these services. If a landscaping company charges $80 a month to clean your property, you can turn around and charge the resident $90 - $100 to cover the cleaning while also making a little extra.
5. Hire a property management company
Yes, it will cost you money to hire a property management company, but doing so can end up making you money over the long run. A property management company will make sure that rent is collected regularly and on time - and that all fees are paid as well. Additionally, they implement a stricter screening process, help improve tenant retention and help create shorter vacancy cycles, all of which can save you a lot of time and money.