For landlords, increasing property value involves practical actions. Use landlord software for efficient tenant management, tracking details, rental rates, and lease durations.
To stand out, focus on improving appearance and ambiance. Move away from the typical budget property image with upgrades and maintenance. Reshape your property’s perception, appealing to potential tenants and boosting its overall value.
Why Should You Upgrade A Rental Property?
When you embark on enhancing your property, it’s not just about upgrades; it’s an opportunity for increased rent. The addition of newer appliances, improved flooring, and upgraded fixtures makes your property more appealing, and tenants are willing to pay a premium for these enhancements. Renovating also sends a clear message to potential renters that you prioritize the property’s attractiveness, setting it apart from others in the market.
- Potential energy efficiency improvement: New appliances, windows, or thermostat changes can cut utility costs, a significant benefit if you cover them.
- Overall property value increase: Enhancing rental features boosts potential resale value.
- Major tax deductions: Renovation expenses may be tax-deductible from the property’s taxable income.
Best Upgrades For Rental Property
1. Replace Floorings
To enhance the value of your rental property, start by regularly updating the flooring. If your property has carpets, it’s more effective to replace them than to simply inform prospective tenants about pre-existing stains.
New or well-maintained flooring increases the attractiveness of your property, encouraging long-term tenant stays. When potential tenants see new flooring, or at the very least clean flooring, they are much more likely to stay in your property and stay long-term.
2. Fresh coat of paint
To enhance the value of your rental property, both its interior and exterior should look appealing. A fresh coat of exterior paint can increase property value by around 5%.
Many property owners make the mistake of inspecting their property only during turnovers, typically every few years. To truly boost your rental property’s value, seize the moments in between renters.
Treat your rental property with the same care as your own home. If you notice worn-down corners in the hallways or doorways, take the time to touch up the paint. These minor improvements can have a significant impact on the overall value and your ability to increase rent regularly.
Similarly, don’t overlook exterior maintenance. Address any issues like peeling paint caused by the weather promptly. Engage with your tenants, if you have them, to schedule necessary painting. Your tenants will appreciate your efforts, making it easier to justify increasing the property’s value and subsequently raising the rent during the next appropriate interval.
3. Update hardware in the bathroom
When renovating your property, focus on more than just flooring and paint. Upgrading bathroom and kitchen hardware can make a substantial difference in how these spaces look and feel. Swapping out old cabinet knobs or handles with modern options can give the rooms a fresh appearance, particularly when combined with new paint and flooring.
The best part is, these improvements are easy to implement and won’t break the bank. You can easily find suitable hardware sets on platforms like Amazon, Walmart, or at stores like Home Depot. These minor changes can bring a modern and appealing touch to your rental property’s kitchen and bathroom areas.
4. Social spaces
Focus on improving the exterior of your property with simple modifications. For instance, the addition of retractable awnings can turn a plain backyard into an inviting outdoor area, making it more appealing to potential renters.
By creating spaces for relaxation and offering shade, families in search of rental properties are more likely to consider your place and may be willing to pay extra for the added convenience of a comfortable yard.
Moreover, retractable awnings can help cut down on energy costs by shading large sliding glass doors, preventing excessive sunlight from entering during the hottest part of the day. This can serve as a compelling selling point for prospective or current renters, particularly when they experience the savings over several months or a year.
5. Add heat pump
Heat pumps are gaining popularity among landlords, and for good reason. They offer safe and efficient heating solutions, which tenants highly appreciate. The ability to control their indoor environment is a significant advantage. Besides keeping the house warm, heat pumps also play a role in maintaining dry indoor air, which can help prevent potential moisture-related damage to the property over the long term.
How to maximise your rental income
With over four million privately rented properties in the UK, the landlord market is fiercely competitive. To enhance the appeal and value of your property to potential tenants, you should contemplate specific measures.
To boost your rental income and draw in high-quality tenants, it’s essential to set your property apart from others in the same area. There are various actions you can implement to increase the value of your rental property, ensure tenant satisfaction, and maximize your returns.
1. Be a sustainable and eco-friendly landlord
In an era of increased concern about climate change and sustainability, tenants often seek landlords and properties with eco-friendly features. This can include options like sustainable heating through ground or air source heat pumps, energy efficiency upgrades such as insulation and new windows, and the use of energy-efficient light bulbs.
Additionally, it’s advisable to guide and motivate tenants to actively engage in recycling and responsible waste management. This not only contributes to the property’s eco-friendly credentials but also encourages a collective effort in addressing environmental concerns.
2. Enhance your outdoor space
The post-pandemic trend of seeking more spacious outdoor areas is still on the rise, with an increasing number of tenants looking for properties that offer great outdoor spaces. Research conducted by Zoopla highlighted that ‘garden’ became the most popular search term for rental properties following the Covid-19 outbreak.
If your rental property boasts a garden, one effective method to enhance its value is to transform it into a versatile and functional outdoor area. This transformation may encompass actions such as creating a sizable deck or patio for outdoor gatherings, furnishing the space with outdoor furniture, introducing storage solutions like a shed, and enhancing the greenery and landscaping for added privacy and appeal.
3. Add additional security features
Whether you’re in the renting or buying market, security is a fundamental aspect of any home. Enhancing security, especially through technology-driven means, not only increases the value of your property but also communicates your commitment to the safety and welfare of potential tenants.
Some security features to contemplate include:
- Video Doorbell: A video doorbell system.
- CCTV Cameras: Surveillance cameras connected to tenants’ mobile devices.
- Alarm System: An integrated alarm system for added protection.
- Improved Locks: Upgrading locks on doors and garden gates.
- Light Timers: Installing timers on lights to create the illusion of occupancy, even when tenants are away.
4. Invest in areas that are important to tenants
The pandemic has prompted everyone to reevaluate their housing needs. For renters, the availability of space has become a key factor when seeking rental properties.
To make your rental property more appealing to potential tenants, consider the following:
- Open-Plan Kitchen: Creating a new open-plan kitchen space.
- Home Office: Setting up a home office, either within the property or in the garden.
- Bedroom Enhancements: Adding more bedrooms or expanding existing bedroom spaces with en-suite bathrooms.
- Improved Bathrooms: Upgrading and enhancing bathroom facilities.
- Multi-Functional Garden: Developing a versatile garden space for various uses, including entertaining.
If you have a budget for property improvements, direct your investments toward areas that align with the preferences of your potential tenants.