Whenever you start looking into a new investment the first question always becomes, “How do I add enough value so that I can recapture my equity and make money?” Owning real estate comes with many benefits. However, you have to know how to maximize your property so you can receive the maximum benefits of real estate. There are certain steps that you should take (which don’t cost a lot of money) to start achieving the best results for your property.
Maximize Your Property Value
The following are options that have worked very well for my team. We’ve been able to really maximize our property values by simply doing a couple, if not all the options below. If you take away at least one of the upcoming solutions to improve the value of your property and take action on it, you will win!
Maximize your property value by upgrading to high-demand finishes. When we purchase a property, we see what potential is in it so we can improve it. For example, we saw the potential in renovations. We put in granite countertops, vinyl flooring, new baseboards, kitchen cabinets, light fixtures and plumbing fixtures.
The more updated you can make your property, the higher the rent and more appealing it will be. However, if you don’t have the capital to do large improvements or full unit renovations, even a fresh coat of paint in each room can help maximize your property value. We renovate to maximize, not only the property value, but the lives of our tenants as well. If there is enough upside in the rents you can take your property to the bank and refinance it for working capital to increase the property value.
Improving the quality of your appliances to stainless steel will cost around $2,000 for each unit. For this type of upgrade you should increase the rent by $100. Like many things, appliances become outdated. Our typical units include a fridge, range, dishwasher and microwave.
Walk outside your property and review the exterior. Does the siding or brick look dirty or run down? Improving the exterior of your property increases the curb appeal. Update or clean the siding of your property and add some fresh landscaping. Bringing in different plants of different sizes and colors will make your property more popular for tenants looking for their next home. The look of your property is what will draw residents in.
Kitchen & Bathroom
If you have room in your budget to make more improvements on the interior of your property, start with either the kitchen or the bathroom. These two rooms are usually the most definable factors for whether someone will rent from you or not. If the kitchen is old with beat up countertops, old white appliances, dirty finishes and a bad vibe, it will be more challenging to rent it.
This is how my organization maximizes property value. The important thing to do before you want to begin maximizing your property value is sit down and create a budget and timeline for the process. How much can you increase the rent and is it enough to justify the improvements. You want to be fully prepared for the improvements and don’t want to be blindsided by the expenses or how long the process is taking. Set yourself up for success and prepare yourself.
Maximizing your property value will start you on the road to success. Improving your property not only brings in more cash flow, but will increase your passive income as well. Figure out what ways of improving your property value work for you and start now. The longer you wait, the longer it will take for you to reach the success you’ve been working towards.