You have purchased and closed on your rental property, maybe it’s turnkey or maybe it needs rehab. You have also determined you have the time, skills, and willingness to take on the management yourself. Now it’s time to start preparing your rental. Below is a brief rundown. See the complete episode for more information.
If you are taking over an existing lease and have tenants already in place, great! Or maybe this is a property that is newly becoming a rental, or the previous owner sold it when vacant. You will need to get your property ready for rent now. Or if you already have tenants, you will need to do this at some point in the future — save this video for when that time comes.
Let’s get your property ready to rent. Here are the steps:
- Making it appealing – top tips
- Setup for ease of management – keypad locks, etc.
- Setup for utilities and operational efficiency.
- Security – cameras, access, etc
- Amenities – cost vs increased rent tradeoffs
Top Tips to Boost Your Rental’s Appeal:
Performing some basic rental property renovations can make your property more desirable and will justify charging market rents. And it doesn’t have to break the bank!
The best renovations for rental property have several long-term benefits for landlords. They allow you to increase rent rates and profitability, and can even mean less property upkeep expenses over the long run.
Fix or Replace Broken Fixtures
Fix those broken dishwashers, lights, leaky taps, etc. Consider upgrading light fixtures to LED lighting which boosts property value and reduces energy costs
Modernize dated fixtures. Updating lighting and plumbing fixtures, door hardware, and address numbers can make a dated unit look fresh and modern.
Upgrade Flooring
At a minimum, clean the carpets professionally. Better yet, replace carpet with easy-to-maintain flooring such as hardwood, lvt, etc. There are engineered flooring materials that look surprisingly like natural materials, making it easy to find attractive options for any room.
Modernize Kitchens and Bathrooms
Focus on upgrading appliances, painting cabinets, new countertops and/or replacing cabinet hardware in the kitchen. In the bathrooms, get new faucets, cabinets and/or hardware. Stainless steel appliances are popular among tenants, very visible in advertising, and relatively affordable. Solid surface countertops are another popular feature, and have the added benefit of being durable and easy to keep clean.
Paint the Walls
One of the easier improvements you can make. Stick with light, neutral colors. Consider using same color throughout entire unit or even in all properties for ease of re-painting and touchups.
Improve Landscaping
First impressions matter. Focus on curb appeal, such as a neatly trimmed yard with fresh landscaping. Consider outdoor living spaces these days – patios, decks, etc. Fresh mulch goes a long way toward making a property look tidy, and helps minimize the need for weeding and other costly site maintenance.
Allow Pets
Allowing pets can increase the pool of potential renters. Charge pet rent and consider pet-friendly landscaping, materials, flooring, etc.
Also Read: Best Ways to Increase Rent: Collect Fees for Pets in Rental Property
Consider Professional Photography
Nice professional photos and video in your listings goes a long ways when potential tenants are quickly scrolling through listing platforms
Also Read: Maximize Rent: 6 Property Renovations to Boost Income
Setting Up for Ease of Management
You will want to make your property as easy as possible to manage tasks on-site when necessary. That could involve things like access for maintenance people and other outside vendors, landscaping crews, package delivery, access to common areas, and even access to individual units for repairs and showings. If you have the time and inclination, you could plan to do this yourself, but that can be limiting. Alternatively, you could have someone on-site to handle these tasks, but that can be expensive. Or you could provide a safe and secure way to provide access either through keys and lock boxes, or with smart locks.
Smart locks are secure and convenient, and you don’t have to worry about keys and codes getting into the wrong hands that you might otherwise with lock boxes.
Also if you need to change locks between tenants, smart locks can be reprogrammed easily, saving you lots of time and money.
Get the property set up so that access is easy, easy to care for materials, resources on site:
- Use smart locks and lockboxes to make access easy.
- Use the same paint colors
- Durable, cleanable finishes – no tile countertops, no glass electric cooktops, vinyl flooring, etc
- Common storage areas for tools, mowers, etc
- Keep a vacuum, broom, and basic tools onsite
Utilities and Operational Efficiency
Many of a rental property’s operating expenses can be managed with strategic planning and smart setup of the systems and facilities. Here are a few ways you can decrease operating expenses:
Landscaping
Consider the removal of landscaping that takes intensive watering. Limit irrigated to areas that add the most aesthetic appeal to the property, and choose drought-resistant plantings whenever possible. Consider installing automated drip irrigation on a smart controller, in order to reduce water usage and eliminate it when rainfall will meet irrigation needs. Mulch planting areas in order to reduce the need for weeding.
Remove high-maintenance landscaping such as lawns, which require water and mowing. More and more people are installing turf, as it is maintenance-free. Make sure not to let cost savings take precedence over how attractive your property is, however, as the first priority is to ensure that renters want to live there.
Utilities
Water is a major expense in most rental markets, and it is easy to miss areas where it is being wasted.
Check toilets and faucets to make sure they are not leaking. Check hose bibs for leaks, and consider removing the knob or installing a keyed model if they are in a public place where they could be inappropriately used or left on.
Where financially feasible, set your building up so that tenants pay directly for the water, electricity, and gas they use. Otherwise, you’ll run the risk of paying for some of their usage, and have a task on your hands to measure and back-bill the expenses.
Consider adding meters for each unit, so that the utility will bill the residents directly. This is often expensive and/or not possible, in which case you can look at installing aftermarket metering devices, many of which are now Wi-Fi enabled.
Each property is different and will have specific opportunities to manage operating expenses without unreasonable logistical, time commitment, or upfront costs.
Security
Tenants will be looking for a home that is safe and secure. This includes both their individual apartment as well as the building, grounds, and common areas.
Investing in crime prevention on your rental property not only helps reduce potential legal liability, but also signals to your current and prospective tenants that the landlord does not take lightly their responsibility for tenant safety and security on their property.
Here are some of the major areas to focus on:
- Entrances and Doors: deadbolts/locks/smart doorbell systems/smart common area entry systems
- Windows: locks/security bars/contact sensors
- Alarms/Security Systems
- Security Cameras
- Motion Sensors
- Lighting
- Personnel
Also Read: Landlord Responsibility for Tenant Safety: Cameras, Alarms and Solutions to Secure Your Rental
Amenities
Offering some of these extras in your rental property can differentiate your listing from others and generate more interest. This can also allow you to increase rent and boost your income. Here are the top 8 apartment amenities that renters want.
- Outdoor space: decks, gardens, patios, etc
- Pet-friendly amenities: dog park, washing facilities, pet concierge services, etc
- High-speed internet
- In-unit laundry
- Air conditioning
- Parking and transportation options
- Package delivery system: secure room, theft prevention, notification, etc
- Smart home technology: video intercoms, keypads, smart locks, thermostats, etc
You also need to consider space, cost, and land use requirements. For instance, adding a swimming pool to your building may be cost-prohibitive on your property. Landlords and property owners need to determine which amenities will offer the best return on their investment.
Also Read: Best Ways to Increase Rent: Top 8 Apartment Amenities Renters Want
Takeaway
Preparing your rental property for tenants involves several key steps to maximize appeal and operational efficiency while minimizing upkeep costs. Modernizing fixtures, flooring, kitchens, and bathrooms, applying fresh paint, and enhancing landscaping can help increase appeal. Similarly, installing smart locks and streamlining maintenance access will allow for easy management. It’s also best to provide attractive amenities that will boost tenant satisfaction and long-term profitability.
Landlording A-Z Series
Our Landlording A-Z series will walk you through each of the stages, tasks, and issues involved in rental real estate investing. In our next installment, we’ll discuss creating your tenant selection criteria.
