If you’re considering selling your rental one day, read here to learn how to increase the value of your property to make more than the original purchase price.
Many rental property owners invest to have a nest egg for their future—the ideal scenario is selling the property for more than the purchase price. To have a higher asking price, the value of the property has to increase, which is a process known as appreciation. Appreciation occurs naturally over time, but you can influence it. If you want to make more money when you finally sell your investment, here are a few ways you can increase the value of your rental property.
Put Down New Flooring
If your rental property has carpet anywhere, you may want to think seriously about putting down new flooring. Carpet quickly loses its color, stains easily, and can hold onto mold and allergens. This means that carpet will immediately ding your property value.
Tile, laminate, and hardwood are all excellent flooring options, with hardwood being at the top. However, hardwood can be seriously expensive, so if you want to incorporate it without spending an arm and a leg, put it in strategic places. Place hardwood flooring in entryways or solely in the bathroom or kitchen. Investing in new flooring can be expensive, but luckily, you can reinvest your property’s cash flow into renovating your property, so you don’t have to spend your own money.
Repaint the Exterior
Increasing the value of your rental property is all about making improvements where you can—a spick-and-span property will always sell for more. One of the easiest ways to increase the value of your rental property and improve your curb appeal is to repaint the exterior.
Giving the walls a good pressure wash may do the trick, but repainting the exterior can make your property look brand new. If your paint job is cracking, peeling, chipping, or fading, it’s going to negatively impact your property value. Remember—the outside of the home is the first thing buyers are going to see, and first impressions are everything in real estate.
Invest in Energy-Efficient Appliances
More and more buyers are looking for energy-efficient homes, not only because they want to reduce their environmental impact but also because they’re looking to save money. Energy-efficient utilities, such as washers, dryers, refrigerators, and smart home thermostats, help reduce energy bills.
Any appliance upgrade is good for your property value. Plus, energy-efficient appliances tend to last longer, meaning you spend less on maintenance in the long run. Investing in energy-efficient appliances also means you can increase the current rental price.
Upgrade the Kitchen
On the topic of upgrading appliances, giving your property’s kitchen a makeover can do wonders for your property’s value. Today’s renters and buyers are looking for convenience, and a kitchen without a microwave, dishwasher, or ice machine just isn’t complete. The higher-quality appliances you invest in, the more you increase your property value and the more money you’ll save over time. For example, stainless-steel appliances require less cleaning and maintenance. You may also want to consider investing in better cabinets and countertops. Laminate countertops and particle-board cabinets break easily and are hard to maintain. Conversely, investing in wooden cabinets and granite countertops will increase property value and save you from future headaches.