Knowing how to attract tenants – those tenants that will pay the highest rental value – is the fundamental strategy that all investors must pursue.
The question comes though – how do you increase the value of your rental?
The first two factors to consider are the type of property you own, and the location at which it is based. These two factors inform the type of tenant who will likely be attracted to your rental property.
For example – your property may be located next to a college or university. Naturally this will attract students, but not only undergraduates. Typically, international students have greater wealth, meaning you may charge a higher rental value.
Lecturers working nearby may also be willing to pay a premium.
Of course, you are likely only to attract quality tenants if your property is in its optimum state. With this in mind, here are some ways to increase the value of your rental with minimal cost, effort and time.
Increasing Rental Value
One of the easiest ways to increase rental value is to spruce up the general quality of your property. For example – study after study show that many properties, up to one-third, are kept in mediocre condition.
By performing a quick paintjob around the home, your property instantly stands out – not only aesthetically to attract the best tenant but also the rental value the home is likely to attract. Don’t be shy on cleanliness, either.
Take a few minutes to review the state of the kitchen and bathroom. Are they kept in a hygienic state? Is there mold growing where it shouldn’t be? Are appliances working and is the kitchen fully kitted out? These are just some of the factors you must consider.
Always keep the wealthier tenant in mind. They are willing to pay a premium, but only if premium features are available. For example – are en-suites integrated into each room, or is this even possible? Wealthier students and staff members are more than willing to fork out extra cash if the features they consider essential are present.
Think about adding other premium features – state-of-the-art appliances, equipment and additional safety features. However, as this requires an additional investment on your behalf, always consider whether these additional costs secure a substantive rental return.
Though it requires planning permission, you should learn whether it’s possible to extend your home. If you have a two-bed property, think about extending it to a three-bed. Not only do you increase overall rental value, you increase the value of the property in the long-term – a dual advantage that shouldn’t be overlooked.
Final thoughts
If you’re not sure how to increase the value of your rental, it may be worth your while to talk with a qualified, licensed and experienced real estate agent who understands the market, your property, the neighborhood in which it sits and how best you can optimise the value of your property. Though this comes at an additional cost, it saves you both time and effort and can easily establish a much greater return.
In the meantime, though, increase the value of your rental by appealing to your target market. With that target in mind, and through the necessary home improvements and market research, you can streamline the value of your rental property and earn a greater income stream than you thought possible.
Triumph Property Management is the leading property management provider in Las Vegas, Nevada. Take a few minutes to learn more about how Triumph can transform the value of your investment.