Renting a property can be a highly lucrative business. Thanks to the platforms like Airbnb, finding potential renters has never been easier. However, just because you have an apartment or a house for rent, that doesn’t mean you will make a fortune by default. In fact, the majority of rental properties don’t earn their owners even a minimum wage, especially if they haven’t invested in them in a long time.
Therefore, if you are serious about renting your property and you want to make a nice lump of cash, you need to increase its value. But how do you do that? Well, as it turns out, there are many different ways, both cheap and expensive. So, let’s check out some of the most cost-effective ones.
Upgrade the bathroom
First of all, you should modernize your bathroom. One of the biggest factors that might keep you from earning more money from renting is the outdated bathroom. Old apartments and houses have outdated bathroom designs with large, clunky bathtubs, poor lighting fixtures, old plumbing, and so on. Plus, over the years, some irremovable stains can form on tiles and other surfaces.
While your bathroom may function flawlessly, if you are planning to ask for a higher rent, you need to remodel it from the ground up. Start by replacing your bathtub with a modern shower. Most people nowadays prefer showers to tubs because they are more practical and easier to maintain. Additionally, installing new tiles will bring a fresh look to the whole area. Finally, replace old faucets in the bathroom with motion-activated ones. Just remember that upgrading your bathroom is all about creating a wow effect so that your potential renters are comfortable with a higher asking price.
Similarly to the bathroom, modernizing your kitchen should be on the top priorities list when trying to increase the price of your rental property. It’s hard to justify a higher monthly rent if your kitchen is outdated or even lacking some standard features that are commonly found in modern kitchens. So, make sure to change the cabinetry, add more countertop space, and most importantly, invest in smart kitchen appliances. If people see that your kitchen has more to it than just a toaster and a microwave, then renters will be more willing to spend extra money on the rent.
Improve energy efficiency
Next, you should improve the energy efficiency of the property. Even though adding more layers of insulation, installing a new air conditioning system, and buying a smart thermostat are not such flashy changes as remodeling your bathroom and kitchen, they are essential to many renters.
For example, heating and cooling your home can account up to 43% of your monthly bill in Australia. So, it’s not surprising that energy-efficient air conditioning in Sydney has become increasingly popular. But not only that; if you decide to upgrade your windows and doors, your energy bills will go down even further. Of course, when renting your property, make sure you highlight these features of your home and explain what comes with them. After your renters realize that their monthly bills will be lower than at other rental properties, they will be more comfortable paying extra.
Clean up the backyard
Finally, you should tidy your backyard. No, we are not suggesting that you should just trim the grass and bushes. Instead, you need to make it a valuable addition to your property. If your backyard has a garden, a nice little relaxation spot, and even a swimming pool, that automatically adds value to your rental property. However, if you just have a patch of grass without any additional features, then you can’t ask for a higher rent. Well, you can; but don’t expect anyone paying extra money for a lawn.
As you can see, if you want to increase the value of your rental house or apartment, you will need to invest some time, effort, and, of course, money. Whether you decide to implement all of our suggestions or just one of them, you need to make sure that you get a good return on the investment. After all, if you spend thousands of dollars on building a swimming pool, and you can’t get more than a $100 rent increase, then you should opt for some other suggestion.