8 Tips for Landlords to increase rental property income
Author: Lisa Roberts
Landlords are supposed to see rental income as a business investment or a way to create an additional revenue stream. That is why, if you want to be a successful landlord, you must first invest in your property. Little changes over time can go a long way. Luckily, there are many ways to improve rental profits. For example, you can minimize expenses and protect your investment with preventive maintenance. Here we will focus 8 ways to improve your rental profits by upgrading the interior and exterior of your property.
Table of Contents:
1. Maximize Your Property’s Views
If, by any chance, you have tall trees in your yard which are blocking the view, remove them or at least try to change their location. Views of mountains, valleys, oceans or cities are precious. Just imagine, if you decide to move to FL this year, would you want to live in a beach house that does not have an ocean view? Probably not! So, as a landlord, you need to do some landscaping. Make your property memorable and impressive. Remember that most people are willing to pay more for a breathtaking view. This is certainly one of the best ways to improve your rental profits.
2. Make Your Property Pet-Friendly and Allow Pets
By not allowing pets, you lose a lot of potential tenants. So, learn how to make your rental property pet-friendly and charge pet rent. Consider allowing small pets, cats, and even dogs (excluding dangerous breeds), especially if you are renting out a house. You can set a limit of up to two or three pets. Although pets may cause some damage, do not stress too much about it and ask for a pet deposit instead.
3. Improve Your Yard Appearance
First impressions are everything. And, the first thing your potential future tenants will see is your yard. The outside of your house is just as important as the inside. This is another factor which can improve your rental profits if it is taken care of properly. So, upgrade your yard.
However, you cannot use just any plants. You have to take your tenants into consideration. Although many people would appreciate a nice yard, many will also be frightened because of all the work that needs to be done. So, choose plants that are native and that require little water and little care. Stay away from natural lawns, tropical plants or any high-maintenance features. These can be a big waste of money. Do research and see what both appealing as well as low maintenance is.
Summer’s heat, wind, and sporadic rain are tough on a lawn, but this article will hopefully give you some simple tips on how to improve your green-space. Let's read on.
4. Add an Outdoor Living Space
So, if you already have a yard and you have made some changes as mentioned above, you have to try to enhance the outdoor living space. This will help you rent faster and for more money. You can have paved walkways around the house and a patio with some outdoor furniture. Install some lighting features as well.
Furthermore, if you really want to go all out, consider putting a grill there for a nice useful touch. When the potential renters see that the yard is suitable for entertaining, they will be willing to pay more. Just remember that tenants who want to have a nice house want to have a nice yard as well. If you want to improve rental profits, invest in the outside areas, not just the inside.
5. If Possible, add an Extra Room
Remember that property features are important factors that affect the value of your home. Here, we are not talking about increasing your square footage but turning one big room into two small ones. For example, you can turn a master bedroom into two small rooms. Or use the attic or basement to create additional rooms. Just pay attention to who your renters are.
If you have college students, create as many rooms as you can. However, if families are your most common renters, then it is a good idea to leave the master bedroom intact. Be sure to research the market and see what will work best for you.
Also, if possible, build an extra room. You have no idea how big of a difference one room can make in improving your rental profits. But before you start building, connect with the local building department, check the building codes and get a permit. Being aware of the laws and regulations is what makes a successful landlord. Once you build the room, pick a design that matches the theme of your home, if there is one. If you are willing to invest a few more bucks, hire an interior designer to ensure your new room looks stunning.
6. Remodel the Kitchen and Bathroom
The kitchen and the bathroom are two of the most important rooms in any house. Nobody would want to call a moving agency to move to a house that is outdated, ugly or that has a kitchen or bathroom that is out of order. Overall, these two rooms are the key factors to help you sell (or rent) your property.
Try to correct kitchen layout mistakes if there are any. The same goes for the bathroom. We know that this is a big and expensive investment that many landlords try to avoid as much as they can. But, it is a necessary step if you want to take your property to the next level. Think of it as an investment for the future. You will have better tenants who are willing to pay more for a nice house.
In this article, we’ll discuss some ideas for minor to moderate updates that may help make your home more attractive, appealing and desirable to a buyer, while increasing your profits.
7. Raise Your Fixtures to a New Level
If your budget is not big enough for adding new rooms or even renovating kitchens and bathrooms, but you still want to improve your rental profits, think about fixtures. They can also improve the value and the general appearance of your house, and you can make these improvements in a weekend. For example:
A. Paint the walls
B. Applying new silicone sealant in the bathroom
C. Replace the doorknobs in every room
D. Change faucets in both the kitchen and bathroom
E. Replace the cabinet hardware of your kitchen
F. Get new window coverings and blinds
G. Reupholster your chairs, couches, etc.
H. Invest in lighting fixtures
8. Interior and Exterior Safety
As a landlord, you are responsible for everything that is going on inside your house. If something gets broken or damaged, it is your responsibility to fix it or replace it promptly. So, if upgrading your household hardware, make sure you pay attention to safety.
For the exterior, make your yard is safe by having a good fence and paving stones. Cut down any dangerous trees and bushes. If there is any broken concrete, damaged patio ceilings or nails sticking out, make sure to fix it all before your new renters come.