Investing in rental properties should deliver great short term income in the form of stable and recurring rents. Your real estate investment should also provide long term financial benefits, through appreciation and the equity you earn as your property grows in value while your tenants pay down the mortgage.
To truly maximize your rental income and attract the most qualified tenants, you need to ensure you are always looking for ways to maximize your rental value. You want your investment property to stand out in the market so you attract both high rents and great tenants. Whether you're an experienced real estate investor looking for ways to strengthen the value of your portfolio or you’re a new landlord who wants to earn as much as possible, we have some tips and tricks that will help you enhance your property's rental value.
In our experience as local property managers in Virginia Beach, Chesapeake, Norfolk, and the surrounding areas, we’ve found that these strategies work best to increase what you earn.
Know the Rental Market
Before making any changes to your property or your investment strategy, it's essential to understand the local rental market. Study the area's average rental prices, days on market, tenant demographics, and the features most in demand by renters. This data will guide your decisions and investments to ensure they align with what potential tenants are seeking and what your competition is offering.
We can help deliver this data. As property managers, we’re always watching the market. We can be a resource when it comes to understanding where your property’s strengths currently are, and where there might be opportunities to increase the value and appeal of your rental home.
Make Smart Upgrades to Your Property
Updates and upgrades to your rental property can significantly increase its value. However, not all improvements offer the same return on investment. You don’t want to invest too much if you won’t see a huge impact. Focus on modifications that boost aesthetic appeal and functionality, such as:
Kitchen and bathroom renovations. Modern, updated kitchens and bathrooms greatly appeal to renters. Focus on lighting and clean, new fixtures such as drawer pulls, a tile backsplash, and shiny faucets.
Energy-efficient appliances. Not only do energy-efficient appliances attract environmentally conscious tenants, but they also reduce utility costs, which can be a selling point when prospective residents are looking for their next home. Invest in appliances that offer the Energy-Star rating.
Fresh coat of paint. New paint always lifts the look of a property and makes it look move-in ready. Choose neutral colors that make the space feel bright and open.
You might want to consider investing a bit more for something like hard surface floors. These are in higher demand lately, not only because they’re more attractive, but also because they are cleaner and easier to maintain than carpet. Tenants with pets or allergies are especially susceptible to dust, dirt, and dander getting caught in carpet fibers. You don’t have to spend thousands of dollars on hardwoods. Laminates and even vinyl can look great and cost less.
Enhance Curb Appeal
First impressions matter. They also impact whether good tenants will be interested in applying to rent your property. Pay attention to curb appeal.
The exterior of the property sets the tone for prospective renters. Simple changes like updated landscaping, a well-maintained front yard, and a welcoming entrance can make a huge difference. Consider improving your exterior lighting for both aesthetics and security.
Add Conveniences and Amenities
Are you allowing pets?
Pet-friendly properties almost always earn more than those that don’t allow tenants to move in with their furry family members. When you allow pets, you can collect a pet fee. You can also collect pet rent.
Any additional features that add convenience or comfort can justify a higher rental price. In-unit laundry, for example, is a great amenity and can instantly raise your rental value and help you attract better tenants. When your rental property offers off-street parking, extra storage space, and smart home technology, you’ll find you’re getting the attention of great tenants who are willing to pay more for these conveniences.
Prioritizing Preventative and Routine Maintenance
Emergency maintenance is expensive and disruptive. It stresses your residents.
That’s why it’s so important to prioritize preventative services and routine repairs. Responsive maintenance is crucial to preserving and even increasing your property's value. By addressing repairs promptly and conducting regular inspections, you avoid potential larger expenses and show your tenants that you care about the property, which will lead to tenant satisfaction and create better retention.
Have your HVAC system inspected and serviced annually, for example. This will ensure you’re not replacing a furnace or an air conditioning unit too soon. Make sure your plumbing is in good shape, schedule regular pest control, and get inside the property at least once during the tenancy so you can look for potential deferred and unreported maintenance issues.
A well-maintained home always rents for more and attracts better tenants.
Invest in Professional Property Management
If you're not already partnered with a property manager in Virginia Beach or the surrounding area, make sure you consider it for the purpose of earning more on your investment. There are so many benefits to working with a professional manager. Not only do we handle the day-to-day landlord responsibilities, but we also ensure your property is well-maintained, rents are collected efficiently and on time, and tenant relations are handled effectively. This can be especially beneficial if you own multiple properties or live far from your rental.
Good management helps you earn more and spend less. You’ll find there’s less vacancy, fewer turnovers, and maintenance services that are far more cost-effective than what you’d pay if you were negotiating rates on your own.
Remember, investing in your rental property is investing in your financial future. The tips and tricks we have shared will help you earn more now and in the future.
Let’s talk about ways to attract higher rents and quality tenants in ways that are specific to your property. Contact us at Rental Homes USA.
