Renting out your home is one of the things that can create a great stream of passive income, provided that you have a property in a good neighborhood, as well as a good tenant. Now, the first is often quite situational, seeing as how with the inherited property you don’t really have the luxury of choosing the location of the place. On the other hand, when buying a home or a rental property, you can definitely do some research in a timely manner. As far as the tenants go, learning how to screen them properly can definitely increase your odds but you also need to have a bit of luck here.
Still, it would be unfair to assume that only these two factors affect your return. The state of the property, its monthly utilities (which is one of the first things that you’ll be asked about), as well as the fit-out of the place are also factors that matter quite a bit. So, it is only logical that you have some things to consider and remodel before you decide to rent out the place. Here are the top five things that you need to focus on in order to improve both the appeal and the return generated by your rental property.
1. Cleaning the property
The first thing you need to understand is the fact that it is a duty of a previous tenant to clean up the place, however, if they fail to do so, the responsibility falls onto you. In general, you would use the security deposit to get the place back in order to fix any damage that the previous tenants have left behind. Still, what if this is the first time that you’re renting the place? Well, you still have to ensure that it’s immaculate before you start showing it to potential tenants. The only two reasons why someone would move into a place that hasn’t been properly cleaned is either because you offer to knock off some rent price or because they’re desperate. Neither of the two is a good sign.
2. Painting the place
The next thing you need to do with the place is to paint it in order to rejuvenate it. The very smell of fresh paint reminds people of something new and clean, both of which are sensations that you want to go for, not to mention the impressive effect that it has on the home’s visuals. Keep in mind that previous tenants may have left traces of cooking, smoking and similar habits and daily routines all over the walls. Also, remember that going for neutral colors is always a good idea. Why? Well, because you have no idea who is the next person moving in, so why risk it.
3. The kitchen and the bathroom
The next two areas that you should focus on are the kitchen and the bathroom area. First of all, you need to do some plumbing works, both regarding the plumbing, in general, and the fixtures themselves. For instance, seeing as how a toilet is a major clogging hazard, as well as the biggest water user within your home, finding a toilet repair specialist in your area should be your first priority. Opting for low-flow fixtures and low-power appliances (both in the kitchen and in the bathroom) are definitely great ideas.
4. Investing in furniture
Provided that you’ve just bought the place, chances are that it’s not fully furnished or that it’s not furnished at all. Now, here’s the trick. You can either rent out an empty place (for a lower rent cost) or rent out a fully-furnished place (at a full cost). Keep in mind, nonetheless, that when budgeting, you need to take into consideration your break-even point when it comes to the extra rental income and your initial investment in the home’s fit-out. In other words, you need to look for furniture that, while of the decent quality, is on a bit of a frugal side. After all, you’re not fitting out your family home but a rental property. As far as your tenants go, they should feel free to replace any of these items and then take them to the next rental home, as they leave.
5. Check the heating
In a scenario where you have a rental home in an area with particularly harsh winters, what you need to look out for is the issue of heating. You see, if your heating is inadequate or too expensive (for the tenant), chances are that you won’t be able to keep a tenant for more than a year. Sometimes, nonetheless, this isn’t the issue of thermostat but of the home’s energy-efficiency. For instance, just by replacing all the windows with PVC double-glazing ones, you get to save as much as $250 on heating each year. Attic and wall insulation are also known to be quite effective in this regard. In other words, the heating potential of the place should be a top priority.
As you can see, it’s not just about being able to rent out your place. It’s also about being as competitive as possible, which can be achieved by making your property more appealing to the tenants. Apart from this, one of your biggest problems (in the rental industry) is the concept of vacancy. So, it is in your best interest that you keep your tenants (the good ones) as long as possible. Overall, the above-listed renovations should help make both of these tasks substantially easier.
SmartReno can help you find the right contractor for your Interior renovation project