The market drives much of what you’re able to earn on your rental property investments, but there are some things you do have control over. When you want to increase your rental value, you need to pay attention to the condition of your property. Make cost-effective upgrades and updates. It’s also important to find good residents. Highly qualified renters can actually increase your rental value because they take good care of the home and cause very few problems.
Here are some easy things to implement right now when you’re working to increase rental value.
Well-Maintained Homes Rent for More
The condition of your home has a major impact on the amount you can charge in rent, so make sure you keep it looking great. Good residents are willing to pay higher rents for a home that’s clean, functional, and attractive. If it’s in a good neighborhood, that’s even better.
Before you rent out the property, give it a detailed inspection and take care of any repairs or replacements that are needed. Once a tenant is in place, make sure you’re responsive to all repair requests and maintenance needs. Even minor issues should be taken care of right away; this will ensure your property doesn’t fall into disrepair or accumulate deferred maintenance, and it will also increase your tenant retention rate by keeping your residents happy. All of this increases your rental value.
When you provide a high-quality home, you can ask for and receive higher rents.
Screen for Better Tenants
Tenant placement has an impact on what you earn because the resident you put in place actually has a lot of influence on your cash flow and your rental income.
Consider what can happen with a bad tenant. You’ll waste a lot of time chasing down late rent payments. You may get to a point when your tenant stops paying rent completely. Then, you’ll have to spend money evicting that tenant, and the process will force you to lose money while your tenant lives in your home for free. Another risk with bad tenants is that they leave property damage that exceeds the security deposit.
A good tenant earns you more by paying rent on time, taking care of your home, and following the terms of your lease. That good tenant is also likely to stay for a longer term, saving you money on vacancy and turnover costs.
Invest in Cost-Effective Improvements and Upgrades
When your home is already in good condition and well-maintained, you don’t have to make expensive renovations or undertake huge improvement projects. But, a few minor updates and upgrades will give your home a fresh, modern look and allow you to charge more in rent.
If your appliances are aging, for example, there’s no need to continue repairing them. Instead, replace them with energy-efficient, stainless steel models. New showerheads can make a difference and shiny, new faucets and hardware on sinks and drawers will immediately elevate the value of your property without costing you much money.
Kelowna Property Management Earns You More
The single most important thing you can do to increase your rental income and your investment’s stability is to work with a professional Kelowna property management company. When you have experts taking care of things like marketing, tenant screening, property pricing, and maintenance, you’ll save money on expenses and earn more ROI. It’s much better for your cash flow, and the management fee more than pays for itself.
We’d love to tell you more about how we can help you increase your rental value. Contact us at Vantage West Property Management.