With interest rates at their lowest levels in 50 years, more and more people are venturing into the world of real estate investment. Investing on an income property is a huge commitment, but it can bring large financial rewards if handled properly.
Learn how a rental property can lead to big money in your bank account. Here are 4 ways to increase the value of your income property
Improve curb appeal
Just like buying a house, tenants would usually drive by the property before they commit to renting. If they don’t like how the property looks from the outside, they won’t be interested in renting the house.
Simple improvements such as repainting the front door, installing window shutters or replacing the house number can go a long way towards improving curb appeal. Not only will it make your property more attractive from the outside, it can also increase the value of the house.
Invest on energy efficient appliances
With the rising cost of monthly rent, tenants are looking for ways to save money elsewhere. Prospective tenants will be happy to know that they can save money on monthly utility bills since the rental property is equipped with energy efficient appliances.
Heating and cooling account for about 48% of the energy use in a typical American household. Investing on a newer, more energy efficient HVAC unit can cost you a huge sum of money upfront, but it will add value to your property. According to the NAA’s Amenities Survey, you can generate an additional 16% in rental income by investing on energy efficient appliances.
Update your pet policy
Nearly all pet owners consider their pets as family members. Unfortunately, most landlords do not allow pets in their rental property. If you allow pets, you’ll appear to a wider market. Because of the increased demand, you may be able to charge slightly higher rent.
Make sure the property is well-lit
Cramped, dark living spaces are a quick turn off for most, if not all, renters. Dark rooms will look smaller and less welcoming. Make sure that the house is well-lit inside and out. Don’t forget to turn on the lights on before it gets dark. During showings, open the blinds and curtains to let the natural light in.