6 most important aspects of a successful rental property

6 most important aspects of a successful rental property

The location of a property can make or break the value of a rental property, especially because there are several factors to consider. First, the location of the property will not change, unless the building structure is physically damaged in some way. Tenants frequently think the location of the property a priority. This is because the external aspects may lend greater appeal if the property is lacking in some respects.

The type of area where the property is located will dictate the kinds of tenants who are interested. It will then affect the frequency of vacancies. If the community contains many tenants who have children, then young couples may be future renters. Neighborhoods also closer to small towns or cities can attract tenants interested in different opportunities. Having close access to public facilities such as parks, running/biking trails, and even libraries can make the property more appealing for tenants.

The number of residents who are attracted to the property will also increase with the number of appliances in the rental. Specifically, stainless steel appliances are rapidly becoming the perfect household touch for properties. Some properties already have basic appliances. The addition of stainless steel ones packs more value for the property, since they are easy to clean and maintain. Tenants are likely to pay more for the rental when the property has these appliances, especially because tenants may not have to pay future costs for appliances.

The income of the rental is the important part of the property. Therefore, having some knowledge about the average rent in the vicinity can provide a much-needed valuation of the property.

Private parking can be extremely beneficial, in particular for those who drive to work on a routine basis. Many people drive cars, and they will pay more money to have the guarantee of a spot for a certain amount of time. In cities, people will pay a minimum of a few hundred dollars for monthly parking permits. The convenience aspect is important, because people often pay a premium for convenience. This factor is extremely important when thinking about buying a

Upgraded counter tops really add value to your kitchen and appeal to renters willing to pay more for upgrades. There are so many options to choose from that will add value and style. Cement and quartz are popular in the higher end markets but a good choice is always granite. Invest in durability, functionality and a style that will stand the test of time.

Flooring is a big one and also a tricky one because everyone has an opinion and you won’t please all potential renters. It’s the battle of carpet vs. wood flooring and in the end, wood flooring always wins. For this purpose we are lumping all flooring together: laminate, hardwood, bamboo, plank and faux wood. The options range from reasonable to pricey but all flooring immediately raises the value and rent in a rental property. Some owners opt for a mix of the two by putting carpet in the bedrooms and flooring throughout. Others opt for a blend of wood flooring and ceramic tile. You most definitely should get rid of old vinyl or linoleum flooring in bathrooms and kitchens. It is unsightly and usually lower quality than ceramic or travertine tile and a major turnoff for renters.

Investing in higher quality light fixtures, adding new ceiling fans, upgrading all faucets (kitchen – bathroom), will give the rental property a more polished pulled together look. It will also give the normal wear and tear items higher durability if you purchase a quality brand. Tenants even notice door handles, locks, and window blinds. Spending a few dollars more to get the nicer 2 inch wood or even faux wood (painted or unpainted) blinds really adds a more lavish touch.

The benefits of adding rental property upgrades extends beyond appearances. Investing in better quality upgrades not only will maximize your rent, it will improve your annual cap rate or rate of return, improve your home’s value and the majority of the expenses will be tax deductible. Most importantly, it will allow you to develop a healthy, legal relationship with your tenants. When competing in an active rental market you need your property to stand out above other properties listed for rent. Quality upgrades done professionally will get your rental property filled faster and maximize the income on your rental investment.