Rental real estate properties are a great way to generate a passive stream of income and generate wealth. Investors also have the added benefits of having a secondary home to use if they need it, and that certainly adds to their investment portfolio. As with many hot markets, Southern California has endless potential for real estate investors, but to maximize your income, it is important to create a space that people will feel comfortable and safe living in. This could simply mean routine maintenance, or it could mean you need to do some major renovations in order to attract a higher quality tenant and bring in your desired income. Here are 5 tips to immediately boost revenue through renovations:
Maintenance is Magic
Expensive renovations are pointless if your rental is not well maintained and displays attractive curb appeal. Performing regular and backlogged maintenance can do wonders for a distressed property. Tenants are looking for a clean place to call home, and even the most impressive upgrades won’t distract from a dingy or dirty property. Some simple and cost-effective maintenance items that are sure to deliver include painting interior and exterior walls, replacing outdated window treatments, and performing routine maintenance, so your rental continues to appeal to potential tenants over time.
Focus On Kitchens and Bathrooms In Your Rental
One of the first things prospective tenants look at are the kitchen and bathrooms. If you’re going to do a major renovation, focus on these two areas first. These are the rooms that will “make it or break it” for many tenants. When putting together your renovation budget, allocate a majority of the funds to these spaces. Not only does an upgraded kitchen or bathroom attract more potential tenants, but they also help to boost the properties resale value, which may be important if you plan on selling in the future.
To get the best return on your investment, you will need to invest in the right upgrades. In particular, these are upgrades that will entice tenants to stay through multiple lease cycles. Consider installing new shaker style cabinets and complete the look with shiny new stainless-steel appliances and fixtures. Quartz or granite counter tops are sure to make an exciting first impression on everyone who walks through the door. These upgrades will set your listing apart from others sitting on the market and getting it rented quicker will save you money upfront.
Invest In Curb Appeal
We mentioned curb appeal briefly however, this cannot be understated, especially in Southern California where beauty is everywhere you look. Tenants don’t want to drive up to a dingy and outdated home. A fresh new coat of exterior paint and some well-kept landscaping can do wonders for a rental property. Simple things like planting flowers, trimming trees, and replacing broken or inoperable light fixtures before a showing can help give tenants a positive first impression that sticks. Make sure all gates, driveways, walkways and access points are working properly and free of debris. Taking care of the yard and exterior of the property is a clear sign that you, the landlord, are proud of the home and clearly take good care of it.
Landlords in California often seek advice from professionals for advice on which renovations will help them attract quality tenants and improve their ROI. An experienced Contractor can not only tell you which home renovations your rental property needs, but also help manage the progress so you can focus on your normal day to day tasks.
New Fixtures and Appliances Can’t Be Understated
Whether you’re performing an entire renovation or simply updating a few things in your rental, new fixtures and appliances can make a huge difference in the overall appearance and functionality of your rental. They can also improve your potential rental income and set your property apart from other outdated units.
Installing energy efficient and modern appliances is a sure-fire way to make your rental sparkle, help reduce utility costs and move the home into the twenty first century. Additionally, putting new appliances in the kitchens and bathrooms prevents the eventual costs and inconveniences that come with repairing and replacing older units on short notice.
Interior and Exterior Safety
First and foremost, tenants want to have a safe place to call home. As a landlord, you are responsible for everything that is going on inside and outside of your home. If something is broken or becomes damaged, it is your responsibility to fix it or promptly replace it. Performing regular inspections helps you identify areas that need to be addressed and create a priority list for future repairs.
On the exterior, make sure your property is safe by installing a secure fence, replacing cracked pavement and removing any dangerous and dead trees and bushes. If you have any steps or stairs on the property, consider installing a handrail to help reduce any possible liabilities. If there is damaged deck ceilings, broken concrete or rusty nails sticking out, be sure to fix them all before your new tenants come.