Purchasing a rental home is a big decision that requires a lot of planning and research. Aside from the big things tenants focus on, such as location, crime rate, job market, and local school district, it is the extra conveniences that make a property stand out. The features and amenities in a rental home create the highest potential return on investment.
Like all houses, there will always be something that someone feels should be replaced, fixed, or updated. While installing high-end molding may be a top priority for the owner, tenants care more about the condition of the appliances. Upgrading the current out-of-style washer and dryer to the newest model can easily increase rent by $100. Even though the performance of the two machines may be about the same, tenants feel more compelled to pay topnotch when the appliances are clean and look brand new.
While security features such as an alarm system, deadbolt, and door chime aren’t normally on the list of must-haves for future residents, they are an added bonus. Offering to pay for the alarm service gives the rental property a competitive advantage over similar homes in the area; this will not only generate more interest in the home, but the high demand will increase rent.
Aside from security and safety, another way to collect more rent is by replacing the carpet with laminate floors. This goes back to the idea that tenants want to live in a home that looks and feels clean. Carpeted floors collect dust, show signs of wear, require more upkeep, and stain easily. A reasonably priced laminate flooring is easy to maintain and gives the home a fresh look.
While all the upgrades and features mentioned above will maximize the rental property’s revenue potential, perhaps the most significant aspect of generating income is through outdoor living. Regardless of the size of the area or the level of privacy, having an outdoor space will add value to the house. A small patio, balcony, yard, or even just a bonfire pit will allow the property owner to collect more rent.