In real estate investing, it’s always important to find new ways to increase property value. By doing so, you’ll be ensuring that you can increase the return on equity of your rental property.
While there are many different ways you can go about this, there are three tried-and-true ways that almost always result in a rental property that’s more valuable than others.
Below, we’ll discuss these three ways and how working with an experienced Austin property management firm can help you be successful in real estate investing.
1. Maintain the Property Consistently
Two of the biggest factors that rental property owners can change are price and condition. Tenants use price as a measuring stick of whether they can afford a property or not. This is why it’s always important to price a property right — or slightly aggressively — to attract a large number of applications so you can vet and select the right tenant.
But, perhaps the most important factor in whether your property will attract applicants is the quality. If you want to attract a quality tenant, you’re going to need to deliver them a quality product. That means you need to consistently maintain your property so it’s attractive to show.
People who work hard, pay their bills on time and take care of their family want to have a nice place to call home. This doesn’t mean that you need to make major renovations to your rental property and outright it with premium fixtures and upgrades.
Instead, you should focus on items that are important to a majority of tenants and that show you maintain your property.
This includes adding a fresh coat of paint, making sure the rental property is thoroughly cleaned and ensuring all light fixtures match. Other upgrades that often result in a great ROI in real estate investing are hardwood floors and faux wood blinds.
All of this will grab the attention of quality applicants and give your Austin property management partner a better chance of finding long-term tenants.
2. Increase the Curb Appeal
Curb appeal should always be a focus in real estate investing, but especially if you own a rental property. Curb appeal is so important because it’s the first impression that potential tenants will get of your home.
If they experience a “wow factor,” they’re likely to instantly be interested in your property. If they’re turned off by it, it may not matter what the inside of your rental property looks like.
Increasing your curb appeal is one of the easiest and most effective ways to increase property value. As mentioned above, it’s important to maintain your property inside and out. This includes making sure trees don’t get overgrown, shrubs are tightly trimmed and neat, the lawn is cut and looks lush and the landscape generally looks attractive.
Beyond the landscape, there are a few simple yet effective ways to increase property value.
Lighting is a great place to start. Not only does proper lighting add curb appeal, it’s also a great security measure — both for you as the rental property owner and for your tenants. A well-lit property assures potential tenants that they’ll be safe from potential intruders and also from walking hazards.
Keeping the exterior of the home clean is important as well. Consider power washing the exterior of the rental property annually, and especially before it hits the market with your Austin property management partner.
Finally, consider investing in an impact front door. You don’t have to spend loads of money, but upgrading the front door from something basic to an intricate design could add a ton of curb appeal that will increase property value.
3. Only Rent to Highly Qualified Residents
You may not think of it, but having highly qualified residents actually helps to increase property value. When you lease your rental property, you’re putting a lot of faith in the people who will live there. That’s because they have the ability to help keep your property in tip-top shape, or they can contribute to it going south.
That’s why it’s important that you work with a professional Austin property management team to ensure all prospective tenants are properly screened and vetted before they’re approved to rent.
At 1836 Property Management, the entire application process for tenants is handled online. At the start of the process, we provide multiple disclosures so all prospective tenants know everything upfront before they even apply to lease a rental property.
Included in these disclosures are all the criteria one has to pass to get accepted. 1836 Property Management checks an applicant’s rental, employment and criminal history, and anything else in their background so no surprises arise later. Everything that we can do legally, we do upfront to make sure you have the best tenant possible.
By having highly qualified residents, you’ll be able to rest soundly knowing that your real estate investing asset is well protected.
To learn more about how we can help you be successful, contact us today.
By: Kayla Gonzales, 1836PM Marketing Manager