4 Surefire Ways to Help Increase Rent and Property Value
April 18, 2018
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How To Increase Rent And Property Value
Whether you’re trying to flip an investment property or increase rent and maximize your revenue stream, there are numerous ways for property managers to bolster a property’s market value. While some certainly require a decent amount of time and money, there are other options for landlords trying to spruce up a property to warrant a bump in asking price for next year’s lease.
Renovate the kitchen.
Renovating or remodeling a kitchen is perhaps the most reliable way to increase rent, but you should be deliberate in just how much money you put behind it. Spending 6 to 10 percent of the total property value on a kitchen remodeling will best set you up for a good return on investment. As with most remodeling jobs, you likely won’t get a full return on investment, but a renovated kitchen will nonetheless increase property value and, often just as important, shorten the amount of time it is vacant or on the market.
It’s easy being green.
There are numerous benefits for landlords choosing to go green, ranging from lower utility bills to attracting environmentally conscious tenants, and there is no short list of ways to make your property more environmentally friendly. Being able to advertise your property’s energy efficiency can prove to be a great marketing tool even as you plan to increase rent and can attract younger generations willing to pay more. A recent study found that 72% of Generation Z respondents are willing to pay more for products and services dedicated to positive environmental impact. Between insulating windows, energy-efficient appliances, and eco-friendly heating systems, you can make a difference while saving money and attracting higher-paying tenants all at once. In addition, Innago enables you to do much of your landlording without paper, cutting down on cost and waste while making your job a whole lot easier.
Replace your front door and make a strong first impression.
This one might seem too easy and simple to have an effect on your property’s value or how much rent you can charge, but studies have shown that updated exterior doors can increase a property’s value by up to $16,000, and rent can be increased accordingly. With all the changes the real estate industry has recently experienced, curb appeal is still as important as ever. And with demand for rentals at a high, potential tenants are often eager to sign a lease the same day as their tour to ensure they get the property they want. You should keep this in mind when wondering if you should increase rent or not.
Get the lighting right.
If you’re serious about enabling your property to give as good a first impression as possible (and you definitely should be!), don’t stop your efforts at the front door. A home’s lighting is perhaps the most important factor to consider when you want to make your property an immediately attractive one. Changing your lighting fixtures and light bulbs to create a warm and open atmosphere can make the difference between a property being listing for weeks and prospective tenants asking right away where they need to sign for a year-long lease.
When looking to increase your property’s rent and value, you can’t always count on having the time or funds to add bedrooms or carry out major renovations. However, you can implement these simple, cost-efficient strategies to add value to your property and justify an increase in your asking price.
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