The biggest cost, both opportunity cost and loss to profit, in a rental property is to have it vacant. While lowering rent may lead to increased occupancy, it also results in more damage, higher turnover, and fewer profits. What if there are essential items that could increase rents while decreasing turnover and attracting long-term tenants? Here, we will look at some small things that can make a big difference.
Increase Available Parking
While studies have not shown that more parking space aids in tenants selecting a property, they have shown that more parking helps tenants stay longer. In 2019, there were 284.5 million registered vehicles in the United States.
With a total population of 257.5 million people aged 16 and over, the average person owns 1.1 automobiles. 24% of households own three or more cars. The number continues to increase since the invention and popularization of automobiles in the early 1900s and most likely will keep doing so. How does this relate to tenants staying in a rental? They need somewhere to park these cars.
Parking can be concrete, asphalt, or even gravel. Landscaped areas cost you money and require effort. Parking areas don’t require regular care, and you can make money when you do it properly. If a rental property has any landscaped area that could serve as a parking lot, you could break even and be making more money in as little as 12-14 months. Turn that little strip of grass on the other side of the driveway into an extra parking space.
Increase Storage
As humans, we like our junk. We fill our garages and closet with it. Sometimes, we put it in attics, basements, and bedrooms. We hide it, show it, and pay extra to store it. As we get more, we are less likely to move it. By providing a space for all of this, you subconsciously assist your tenants to forget about moving house.
As the investor or owner, you should install shelves or shelving units in the garage. Put a shed on the side of the house or in the backyard if there is room. Be sure all closets and laundry rooms have shelves or cabinets higher up, as usually this space is wasted.
If there is an attic, unfinished basement space, or a crawlspace, set it up so that you can store some bins or boxes there. Under-the-stair closets are often a missed opportunity. A local handyman can do most of this in a day or two between tenants for a very minimal cost.
Include Professional Landscape Maintenance
Homeowners enjoy doing yard work more than renters. You are not doing any favors by trading a lower rent rate for the occupant to care for the yard. Professional care will keep the curb appeal high, not just for prospective tenants but for the current tenants.
They will receive endorphins every time they see the crew or the results, knowing they didn’t have to do it themselves. They will often consider it as a “free upgrade.” Indirectly put the cost of the service in the monthly rent. It will be inclusive, and you can maintain your desired profit goal. At the same time, you will have better care for your property. (Other studies show that a well-cared-for exterior leads renters and owners to better care for the interior, a topic for another day).
You don’t need fancy landscaping or even to change the existing landscaping. In most cases, they require maintenance from a professional company. Most landscape maintenance companies have a website where you can receive a free quote the same day or within 24 hours.
Stay Current with INEXPENSIVE Trending Amenities
Don’t remodel the whole house every few years, or you will never make any money. The idea is not to go looking for projects. If there are some easy and inexpensive upgrades, DO THEM. Things such as upgrading old light bulbs to LED or replacing an old thermostat with a new smart thermostat are worth doing, even if the current bulbs or thermostat are working.
Other items will come into play when something requires a replacement. Toilets are often skimped on for rental properties. You can get better and more efficient flushing options with a small amount above the base models. Don’t put carpet anywhere besides bedrooms, and even that is a big maybe. It will save you on the upkeep side of things and keep people long as the upcoming generation is less fond of carpet.
Once you do these things, make sure everyone knows. The sale and advantages only come if these benefits are recognized.
