Successful real estate investing requires investors to keep an eye toward creating value in the property. With successful real estate investors, investment decisions aren’t made on whether the investor likes or dislikes the property, rather upon the property’s potential profitability; based on thorough market research, whether he or she can spend some amount of money to boost the value of the property perhaps by 2-3 times that amount.
In this article, we’ll look at seven improvements you can consider making to a rental income property that could easily boost the value of the property and possibly reap you a great return on investment.
1. Clean the Property
Cleaner rental units attract higher-quality tenants, and investors pay more for properties with better tenants because better tenants mean lower risk, less trouble, and surer rent collections. When you display a pride-of-ownership cleanliness, you not only attract better-quality tenants, you show your tenants the degree of cleanliness you expect. Likewise, when you do plan to sell the property to another investor, a spotless unit will sell quicker and at a higher price.
2. Update Color Schemes, Patterns, and Fixtures
You can quickly add to the appeal of your units with modern color schemes, or special touches like chair moldings, mirrors, fancy plumbing, light fixtures, or patterned tile floors. The rule is not to go wild with creativity or personal flair, but add just the right amount of interest to make your units stand out from the competition.
3. Create More Usable Space
Keep asking yourself, “How can I use or create space to enhance sales appeal or generate more income from these units?” Maybe you can convert an attic, garage, or basement to additional living area, or perhaps enclose a porch or patio, add a second story, or build an accessory apartment. Moreover, think about remodeling the living area within the units so every storage and living area within the apartment is sized proportionally to market tastes and preferences. When feasible, reduce the size of large rooms by adding walls or separate areas, for example, or perhaps combine small rooms to make larger areas.
4. Consider the View
Whenever you can find properties that fail to capture a potential view of a lake, ocean, mountain range, park, or woods, you have discovered a great way to add value to a property. Likewise, eliminate any negative view and convert it into something attractive, perhaps by changing the location of a window, creative landscaping, or by adding decorative fencing, you will add value to your property.
5. Capitalize on Creative Possibilities
Rather than utilizing commonplace ideas and rushing into slapping on a fresh coat of white paint and laying new beige wall-to-wall carpeting, think outside the box and try to imagine some creative possibilities.
6. Amplify Natural Light
Tenants and investors prefer properties with lots of natural light. Consider adding or enlarging windows, swapping solid doors with glass inlays, or installing skylights. Also, make the units appear more spacious with lighter paint, carpet, and window treatments, painting over brick fireplaces, or by tearing out that low, false ceiling.
7. Reduce Noise
Tenants pay a premium for quiet. So the more you can muffle or eliminate outside (or adjoining apartment) noise, the better. Consider insulation, caulking, trees, shrubs, and soundproof windows to enhance quiet.
