Ways to yield a better return on investment
Investment property owners are always scrutinizing ways to yield a better return on investment. One such ways is to make some improvements to your rental property. Strategic improvements need to be custom made specifically for your target market. Only then can you begin to realize the best returns on your property. However, this is a very delicate situation that requires wisely setting and strictly adhering to a predefined budget.
To start with ensure that prior to the property’s occupation you clearly set out all the improvements you need to make. Focus on improvements tat have the potential to significantly attract increased rental returns. But before you jump right into it, you need to understand the needs of your potential tenants and seek to meet these. It is also important for you to have comprehensive knowledge of the features that are supposed to come as part of the property for the rent you charge. Moreover, you must do research on the various rental brackets and the features that must be included in each bracket. You must remember to get some advice from professionals who can steer you in the right direction.
Meet tenant’s expectations
Firstly, you need to understand your potential tenant’s needs and how you can efficiently them without breaking the bank. It is also imperative for you to know the kinds of tenants that would be most attracted to your type of property. For example, tenants with children will prioritize yard space as well as increased security and safety features. When you understand your target market, you can then go ahead and ascertain the types of additions and alterations that you can make. However, this will primarily depend on your available budget and the resources at your disposal. As a word of caution, do not over-capitalize on the value of the property. As such set your sights on items that are guaranteed to yield the greatest rental return.
There is a diverse range of tenant needs tat will need to be addressed and the likelihood is that you will not be in a position to do them all at once. However, there are a few basics that should be at the top of the list.
General maintenance is essential as in one of the first things tenants notice. As such you must make sure that all plumbing and electrical issues are in perfect working order. It is also very important that the property is exceptionally neat and tidy. Moreover, anything that is broken must be fixed and non-functioning appliance replaced. These might seem like minor and insignificant items but the return on investment they bring is substantial.
Secondly, you need to modernize your property to keep up with the contemporary needs of tenants. Ensure the living space reflects modern architectural design and caters for the digitally inclined. In addition, ensure there are sufficient power points to handle the proliferation of gadgets at the hand of tenants. Also look into robust internet connectivity on your property.
With the ever-increasing population and homes becoming smaller and smaller, the importance for storage cannot be downplayed. The need for storage is even more amplified when it comes to flats and other smaller properties. Areas that could benefit from added storage include bedrooms, kitchens, bathrooms.
Other improvement tasks you could embark on are;
- Introducing some more color throughout the property
- Replacing worn tiles, carpets and flooring
- Adding some more security features
- Improving the landscaping
The right kind of home improvements will help you attract more potential tenants. Above all you will also be able to earn a higher rental return.