Most real estate investors are consistently looking for ways to boost the value of their rental property. Consistent and recurring income is especially profitable when you’re able to raise the rents year after year. To do that, you need to offer an attractive rental home that’s competitive on the Jackson, Mississippi rental market.
Whether you’re just starting as a landlord or you’ve been an experienced investor for years, there are always smart upgrades that will benefit both you and your tenants.
We’re taking a look at several simple but smart upgrades that can help add value to your Jackson rental property while ensuring you don’t overspend in the process of making those renovations.
Before you launch into making some upgrades, you need to decide where you want to focus your time and your resources. You want to be strategic about the scope of work and the purpose of your renovations. If you’re trying to increase the value of your property, you need to know what adds value.
Here’s what we can tell you as Jackson property managers: most tenants care especially about kitchens and bathrooms. That’s where they’re looking for the latest fixtures and features. We rarely recommend that you commit to a full rehab, but if you’re going to make a significant investment, think about your kitchen and your bathrooms. These are good starting points.
Consider your investment goals. You’re looking for ways to increase the overall value of your property, bring up rental values, and attract well-qualified residents. Some stunning curb appeal will make a difference. You also want to retain the residents you have in place now. A new washer and dryer or some fresh paint can always incentivize a lease renewal.
Ultimately, your smart improvements and upgrades will depend on your investment goals and the age and condition of your property. Sometimes, investors are simply trying to make their property more attractive to good tenants. In that case, cosmetic improvements will be more than enough. If you’re trying to maintain the long-term value of your property and you want to focus on preventative maintenance, replacing an old and drafty roof might be the best use of your renovation dollars.
Carpet is difficult to clean and maintain for both tenants and owners. If you have carpet in your rental property, you know that you’ll likely have to clean it between tenants and to change it entirely every few years. If a new carpet is an update you want to make, look for a sturdy, durable carpet that will withstand the high traffic of tenants. Choose neutral colors, too, but not a shade that’s too light and will show every small stain.
A smart upgrade would be transitioning away from carpet and into hard surface flooring.
This will earn you more in rent and attract really great tenants. An argument can be made for keeping carpets in bedrooms. However, throughout much of the property, laminate flooring, tile, or even hardwood floors would be better.
Many different types of vinyl and laminate also look great and don’t cost a lot. You’ll want to focus on flooring when you’re making smart upgrades because hard surface floors are easier to clean, easier to maintain, and present fewer health risks. Carpet fibers do a great job of trapping allergens, dust, dirt, pet dander, and even pests. If you’re renting out a pet-friendly property and one of your tenants has an animal with fleas, they’re going to create colonies in your carpet.
If you have the budget to upgrade your floors, you should do it. The hard surface flooring you install will give your floors a longer lifespan. You won’t have to clean and replace carpet during every turnover, and your prospective tenants will be drawn to better looking floors.
Smart home technology is growing in popularity and if you want to increase the value of your property and set your rental apart from all the others on the market, you’ll incorporate some smart home technology into your own property.
This can get expensive, but there are also easy ways to choose a few key systems and services that will get the attention of well-qualified renters and drive up what you’re able to earn.
Security is important to preserving your investment property and keeping your tenants safe. Investing in smart home technology that makes your building or your single-family home safer will absolutely pay off in the long term. Not only can you increase the rent you charge, you also have a chance to reduce your operating expenses. For example, with a smart lock you don’t have to make new keys during every turnover. Simply re-program the lock. Some keyless entries can be operated by phone or through an app that your tenants can download.
Video doorbells are also extremely popular with tenants. They won’t cost you too much to install, and the level of usage will be up to your tenants. These are excellent features because they allow your residents to see who is at the door before they open it. They can track package delivery and even keep an eye on the property when they’re not home. Video doorbells will help you, too, during periods of vacancy.
Tenants are more environmentally conscious than ever, and they’re also interested in keeping their electric bills down. Invest in smart home devices that help you regulate the amount of energy that’s being used in your rental unit or building.
Smart thermostats are especially attractive. Tenants can better control their heating and cooling settings, depending on the time of day and whether anyone is home. Upgrading your light bulbs and your appliances will also make your property more valuable.
Always think about your curb appeal potential. It’s a good idea to update your landscaping when you can.
Check the exterior paint on your rental. Power wash the property before you list it. These are simple, smart updates that will help you raise your rents. Keep any lawn or outdoor space cleaned up and mowed. Trim back bushes and trees, and pull any weeds if you have flower beds or edging around the property.
Adding landscaping or lighting in the front yard will give your property extra curb appeal. You’ll want to keep the landscaping simple. Tenants might worry about the amount of work that’s required to maintain complicated flower beds and trees.
If you aren’t providing in-unit laundry, you’re missing a huge opportunity to increase the value of your rental property.
Without a washer and dryer, tenants will have to travel to do their laundry. Providing laundry facilities in a multi-family building is an excellent amenity, but even better would be private laundry in each tenant’s own home. A washer and a dryer will increase your rental value and move your property to the top of the list when tenants are looking for a home to rent.
Lighting can give your property a brand-new look. And, it’s pretty cost-effective. Your prospective tenants will want bright, energy-efficient interior lights. They don’t want to replace bulbs every few months. They want to be able to see what they’re doing, especially in the kitchen and the bathrooms. Focus on good overhead lighting and LED bulbs.
Exterior lighting needs to be installed from a perspective of security. The path from parking to doorway should be well-lit and bright. Residents need to feel safe, and you want to deter potential criminals. Consider installing motion lights over the garage or the front porch.
Maybe new paint seems like it’s just part of your turnover process, and you don’t really see it as a potential upgrade.
Paint can make a big difference, though.
You’re always going to need fresh paint when a new tenant moves in. You don’t have to wait for that turnover, however. Fresh paint can be a great incentive for existing tenants to renew their lease agreement. If the paint in your property looks worn, faded, or simply old…it’s a logical update that you can offer.
Desirable Jackson rental homes have walls that are sturdy, clean, and modern. They should be well-insulated and painted in neutral colors.
New paint is not exactly cheap, but it’s an update that’s cheaper than a lot of other renovations. It’s also easy for you to make. It can quickly improve the value of your property and attract prospective tenants when they walk into a freshly painted home. It’s a noticeable update.
Since we’re making smart updates, always use good paint. Cheap paint looks cheap. Choose something that’s durable and attractive.
These are general updates that we would recommend for any Jackson rental home. If you’d like some specific suggestions based on your property, please contact us at Lucroy Residential. We’d be happy to tell you more.