Updated March 8, 2022
If you own investment property in Tacoma, you want to ensure that your rentals earn income that brings the return on investment you need. When understanding ROI for your rental property, you may be focused on questions like "how much can I rent my house for," and "should I do everything on my own?" However, there are other factors to consider when maximizing your ROI.
One of the best ways to boost returns is to think about different upgrades to your property that could justify higher rental rates—and thus, a greater ROI. Our Tacoma property management experts are equipped to discuss some ten ways you can put a few dollars into your rental property and see a big win in higher rent returns.
1. The Latest Rental Property Technology
Property management experts know that most people are connected to tech in a big way. Renters appreciate the benefits of added tech features in their homes, from smart appliances to advanced security technology. The good news is that many millennials are willing to pay extra for the features they want. Adding the right tech can justify a rate increase and attract quality potential renters!
2. Upgraded Lighting
Lighting is a small expense compared to other more costly home updates, so you may wonder what the benefit of this upgrade would be. The low financial investment is part of the equation, and property managers know that energy-efficient bulbs and strategic lighting can help tenants feel more at home in your property (while reducing their energy costs). If you have a small property or few windows, proper lighting can open up a room and make it appear larger and lighter.
3. Water-Saving Fixtures
Energy efficiency appeals to renters with water-saving fixtures, too! Whether you pick up the tab on the water bill or your renters cover utility costs, it's an effective way to boost the appeal (and returns) for your property.
4. Updated Curb Appeal
Updating the curb appeal helps increase the interest in your rental property. A trusted property management company can tell you that your rental makes the first impression in just a few seconds, so the more appealing the exterior, the better the impression on potential residents! If your property has some added touches outside, it can put the prospective tenant in a positive mindset before coming inside.
5. Energy-Efficient Appliances
Although you may wonder how much can I rent my house for, your tenants are also calculating costs. Tacoma property managers know that they might be willing to pay a higher rent if their utilities are less expensive. Consumer reports say that people can save about $500 a year with energy-efficient choices. Upgrading to energy-efficient appliances and featuring them when marketing your property can reduce vacancy times (and boost returns).
6. Replaced Countertops
The kitchen is often the focal point of a home—the place where renters meet after work or school. It can become the gathering place for get-togethers, family conversations, and morning coffee. Making the kitchen space a welcoming feature in the home can deliver an in-demand feature for your property. Countertops are the answer for putting some pizzazz in the kitchen without burning a hole in your wallet.
7. New Flooring
An upgrade to the flooring can usually have an immediate impact on the appeal of your real estate investment, especially if you have carpeting and had previous tenants. However, there's no need to overspend on expensive flooring to add a modern touch to the property. Choosing vinyl or tile materials creates floors that are easier to deep clean between tenants, are more pet-friendly, and are a popular choice among renters.
8. Bathroom Updates
The bathroom is another place in rental properties that benefits your bottom line after updates. Even minor upgrades like new cabinet hardware can go a long way to improving the look and feel of the bathroom. While a complete remodel isn't always necessary to spruce up the space, a Tacoma, WA property owner should keep an eye on outdated fixtures, old tile, and grout, or toilets that need to be replaced.
9. Increase Square Footage
Adding square footage may sound like a big project, but there are ways to do it inexpensively. Sometimes removing a wall or closet can open up the space for you. You could consider bumping out the kitchen or living room to install bow or bay windows. These updates can also support a monthly rent increase.
10. Interior and Exterior Painting
One of the simpler updates you can make is painting the interior of a Tacoma, WA rental home. This helps it look brand-new inside and also helps remove any lingering smells left by previous tenants. Go a step further and repaint the home's exterior to deliver a full-house makeover!
Get Started with Professional Tacoma Property Management Services
When you think about all that is involved in a successful rental property and boosting rental income, property owners can benefit from the assistance of a professional property management company. A Tacoma property management firm can coordinate upgrades for you and advise on which ones will work best for your home (and bottom line).
Reach out to The Joseph Group to talk more about how our property management services can help you maximize ROI.