How to Make Your Investment Property the Hottest Property on the Block
You’ve done your research. You’re ready to buy your investment property. But how can you make it not just rent-able, but the hottest rental property in the neighborhood?
7 Tips to Make Your Investment Property Pop
Fixer Upper – or Turn-Key?
In the brave new world of HGTV, it’s easy to think we’re all capable of major renovations: Flip or Flop, Fixer Uppers, Love It or List It – these shows make renovations seem easy as pie. The truth? We’re usually shown the beginning, a tiny bit of the middle, and the grand finish – leaving out all the work completed by professional contractors.
Is it worth it to buy an investment property that needs a lot of work? Unless you’re a skilled contractor – or know a good, affordable one – the answer is probably no.
Instead, look for a property that needs minor repairs that can be done quickly or easily. A property that is more or less turn-key will create income more quickly than one you have to rehab.
Add a Bedroom
How many bedrooms does your investment property have? Hot tip: Adding a bedroom not only increases what you can charge in rent (whether it’s per property or room by room), it adds to the resell value. Plus, it’s cheap – adding a bedroom costs about 10% of a typical kitchen remodel.
Check Out the Neighborhood
Are the property taxes low enough that you’ll still turn a profit? How do the school districts score? What is the crime rate like? These are all important, during different times, for renters when considering where to rent.
Be Close to Amenities
Whether it’s Five Points, Brier Creek, North Raleigh, Glenwood South — or several of the other amazing neighborhoods in Raleigh — location and convenience are key. Grocery stores. Parks. Restaurants. Retail shops. How far are these away from the property? Amenities, to put it simply, make people’s lives easier. No one wants to drive twenty minutes to the grocery store after they’ve worked all day.
Offer Outdoor Space
It doesn’t have to be fancy. Raleigh is a very relaxed town with a great deal of the year suitable for outdoor living. Many renters want to enjoy a private, cozy area where they can enjoy the outdoors – especially in the warmer months. Make this space warm and inviting, and invite your tenants to add their own touches: Lighting, furniture, plants, flowers and as bug-free as possible.
Know Your Demographic
Are you looking to rent to students, young professionals, families, or vacationers? Know what they’re looking for from property – and make those adjustments. Bear in mind discrimination laws and practices — it’s not about limiting your tenants, it’s about creating the perfect environment for the audience you seek.
A lot of renters have pets – but not a lot of rental properties allow them. Capitalize on this need for pet-friendly housing by allowing pets – but make sure you set clearly established rules and an additional pet rent amount. Is the pet a service animal? Then, technically, it’s no longer a pet. Read more about service animal regulations here.
Let us know how we can help. We help several hundred property owners like you maximize their investment. Check out our full-service property management options to learn more.