Have you been keeping your investment property renovations in check? When looking to rent out your investment property, it is crucial to realize the popular trends and demands in the market alongside basic tasks you can perform to ensure that your property is set up to be rented.
Local Property Analysis
To properly figure out which investment property renovations you should add into your home, you have to do a formal analysis of how the competition is performing. To do this, you can join local home open house showings to view the current offerings of the housing market. While doing so, it would also be wise to pay close attention to what people are saying as it can provide key market insight as to the desires and lifestyles of the people who reside in the area. Also, if you manage a property that was close to shopping, freeway access, or a local “hot spot,” for example, it is essential that you take note of the sort of people that might wish to live in your home.
If you don’t follow the right steps to set up the right house for the right market in Seattle, it may take longer to find renters, or the renters may not stay as long, resulting in an increased turnover rate. Take the proper steps in attending to your investment property renovations by ensuring that your renters get what they need.
Fulfill the Needs of Your Target Market
A property investor in Seattle took notice after a rental property took longer than normal to rent. After more analysis, they realized that their rental property was in a commuter or eco-friendly area because it was near a main public transportation hub. The prospective tenants that were viewing the property investor’s home had interest in the property; however, after realizing that the access to the hub fenced off with no gated access, they decided to walk away with no more interest in the property. Had the owner left the gate access that was allowed by both the city and hub, he may have had a better chance of renting. Adding solar panels and alternate charging stations may have been an advantage as well.
Now in comes the part where you must think about the market and what investment property renovations you need to make. Usually, a family with pets wants a fenced yard. Elderly tenants might appreciate more of a low maintenance garden, extra storage space, and bedrooms with ease of access.
Meeting the Housing Standard
Occasionally, it would be fitting to just apply a fresh coat of paint or add new carpeting in your investment property. The custom of rental renovations is to constantly adapt to the growing demand in the market based on what people in the area want in a home. Adding appliances or a new coat of paint might be important in increasing the value of the rent and/or allowing your property to be occupied longer. A house that is not correctly maintained or updated could lead to damages or wear. Residents can also be disappointed if they are using outdated appliances (including a fridge, microwave, or oven), and those negative feelings could reflect on the property itself.
You can also adjust depending on what the housing market is. For example, if your property has four bedrooms and one bathroom but demand in the area is for three bedrooms and two bathrooms, you could decide to give landscape, basic cable, or internet services.
By understanding the demands of the local market, you can perform the proper adjustments without going on a complete overhaul to renovate the entire property. The key to making investment property renovations is to do what is required of the market and ensure you are meeting the proper demand in your area.