Flipping properties is not as easy as it seems on TV. They usually take months and require a significant investment to make a profit. But there are ways of flipping homes that don’t require massive investments without any payback.
Rather than purchasing a rundown property in a luxury neighborhood (which is what they seem to do on HGTV, but how are there so many diamonds in the rough?), you can purchase a property to rent it out. This is an excellent investment without too much risk. These rules also apply to vacation rentals.
To make decent money on a rental, whether it’s long-term or short-term, you’ll need it to look great without costing you too much in upgrades. So, what are the minimal upgrades you must make when looking to purchase a rental property?
The Upgrades To Match The Competition
First, do your research. If every rental property within 2 miles of your property has a washer and dryer, but your’s does not, the first upgrade seems obvious. You should match most of the rental properties in the area unless you ask for significantly less rent. Even then, most people considering rentals in that area will have standards, and it may be hard to find the perfect renter.
The Basic Upgrades To Stand Out
Landscaping and Cleaning
The low-cost items that help any rental stand out include landscaping and cleaning. First impressions are everything and landscaping is a relatively low-cost item that can be replaced easily should it not be well kept. Cleaning the rental property makes it feel like a new home. Imagine buying a used car. You still expect it to feel new, right? The same goes for any property. Nobody wants to spend money on something that feels dirty or used. A good cleaning should be part of the turnover process.
Painting the walls could be considered an upgrade or an update or it could be considered cleaning. Either way, a fresh coat of paint can change the entire look of a place. For a smaller space - especially given that it must be appealing to a wide variety of people - go with a neutral yet light color. That being said, white is not a good option unless you really love repainting!
Curtains or window treatments
Not all rentals will come with window treatments, but supplying them can be an easy way to stand out from the competition. Again, stick with neutral options and set a low budget before you start shopping. It’s always safe to presume you will need to replace them after each tenant.
The higher cost items that can boost your rental prices
Before you put some serious money into your rental property, be sure that you can reap the rewards by charging a premium rental fee. If you don’t do your research, you may find your investment trashed by a renter that wasn’t paying enough to cover the now-necessary renovations.
Putting laminate flooring down has become a much more reasonable investment recently. This type of flooring can look fantastic and can be laid easily in one or two days by non-professionals or in one quick day by the pros.
Changing the lights for statement pieces will not break the bank, but one statement piece in the main living area is enough. Don’t go overboard.
New windows or additional windows to bring in light are also a great show stopper, but much more costly and not always worth the money spent.
Timing is everything with purchasing appliances. If you play your cards right, you can get an entire set of appliances for the same as you would normally pay for a new fridge alone. That being said, if your tenants are not paying a premium, you can’t expect to reap the rewards of this investment. Weigh up whether used appliances might work as well, especially if they match in color so that it’s hard to tell new from used.
The rental market in most areas continues to strengthen. Rental properties are a great investment, but if you’re unsure where to start, we can help! Our co-founder Gabrielle Charles is a highly-rated investment mentor. Whether you are looking to jump right in or are more interested in becoming a silent partner, she can guide you through the process as it suits you.
Get in touch today!
Regalway Homes | firstname.lastname@example.org | +1 844-977-2679