What will make your investment property more valuable?
In many cases, this will depend on the property itself, especially the type of home it is, its location, condition, and age. We’d be happy to make some specific recommendations once we evaluate your property and consider the potential for improvements.
There are some general suggestions we can make, too, and we’re sharing those today. When you want to increase the rental value of your property and its long-term worth, we think you’ll have the best results with these five recommendations.
1. Well-Maintained Homes are Worth More
The condition of your property has a major impact on the amount you can charge in rent, and well-maintained homes always have higher rental values. Well-qualified residents will have high expectations, and they’ll be willing to pay more for a home that’s clean, functional, and attractive. Before you rent out the property, conduct a thorough inspection and take care of any repairs or replacements that are needed.
Once a resident is in place, you need to immediately focus on retention if you want to increase and maximize the value of your property. Be responsive to your resident’s repair requests and maintenance needs. Even minor issues should be taken care of right away. Not only does it retain residents, it also ensures the condition and value of your property is protected.
2. Invest in Energy Efficiency
Going green has become more than a trend; it’s practically a necessity in today’s environmental - and business - climate. By improving the energy efficiency of your property, you’ll not only cut down on your own utility bills during vacancies and turnovers, you’ll also keep energy costs lower for your residents. You’ll offer a more desirable rental home to environmentally-conscious residents.
And, you’ll boost the value of your property.
You don’t have to blanket your roof with solar panels to invest in energy efficiency. Instead, choose some simple, energy-focused upgrades. Check your insulation. This is a great starting point and will ensure you’re keeping the air quality good inside the property. You can also replace existing light bulbs with energy-efficient LED bulbs. Shower fixtures and toilets can be switched out for lower water flow, and even new windows will have a huge impact on the energy you’re able to conserve. If your appliances are old and loud and non-efficient, replace them with those that carry an Energy Star rating.
Residents will appreciate these efforts, and your property will be worth more.
In southern California, residents are increasingly considering the energy efficiency of a potential rental when deciding whether or not to move in. It makes sense from a financial standpoint; they want to pay less for utilities every month. It also speaks to the growing popularity of climate awareness and an interest in sustainability; this is what your residents are looking for in their next rental home. When you can provide it, you’ll earn more.
3. Landscaping and Curb Appeal
Aesthetics count just as much as functionality when we’re talking about property values and rental prices. People are willing to pay more to live in a home that’s attractive, welcoming, and inviting. Even just a few flower beds or a shrub that’s trimmed back in front of the window will make a huge difference in how your property looks and how potential residents perceive it.
Curb appeal matters almost as much as location when it comes to a rental property in San Diego, and that’s because it’s really the first impression that you have an opportunity to make. Freshly mowed lawns, simple and efficient landscaping, and pretty paint colors on homes and doors will make a big difference in what you’re able to charge and what your property is ultimately worth.
Invest in a great landscaping overhaul, whether you have a large fenced yard or even just a small courtyard. It contributes to your curb appeal, your ability to attract residents, and the value of your investment.
4. Pull Out the Carpet and Consider Hard Surface Floors
How clean can you really get the carpet in your rental property? A professional steam-clean between residents is great, but still - unless you’ve just installed it, this is always going to be old carpet.
Upgrade to hard surface flooring, and you’ll enjoy a number of benefits.
Your rental property will be worth more.
Residents will find the floors more attractive.
They’ll be easier to clean and maintain.
You won’t have to clean or replace the carpet during every turnover.
Carpets can trap allergens, odor, dust, and pests like fleas and mites. Eliminate the carpet drama and invest in hard surface floors instead. Hardwoods are not necessary; you can find a lot of great laminate surfaces such as faux wood, tile, and even vinyl. Look for something durable and cost-effective. You won’t regret the upgrade, especially when you’re earning more rent and your home value increases.
5. Partner with a Property Manager
Does your investment property automatically grow in value when you hire a management company?
Actually, yes. Property managers have local market knowledge that can ensure your property remains more profitable and competitive. When you can leverage that expertise to be more exact with your pricing, your lease renewal negotiations, your marketing, and your maintenance, the professionally managed investment property easily becomes worth more. Smart investors know this, and it’s why they don’t hesitate to work with experienced San Diego property managers.
Property managers make recommendations on preparing the home for the rental market, investing in upgrades and updates, and managing preventative maintenance. All of this reduces needless costs and expensive emergency repairs.
Don’t wait until something goes wrong to partner with a property management professional. The sooner you begin working together, the more profitable your investment property will be.
If you have any questions about how you can have a more successful and profitable investment experience, contact your local San Diego property management experts. We’d love for you to get in touch with us at PURE Property Management.
