Passive income via renting is one of the smartest means of earning money. However, many who decide to venture into it are at a loss about the best ways to market and price their properties.
If you are looking to maximize the earning potential of your property, take a second to see which parts of the place may need some sprucing up. Getting upgrades and knowing how to sell these perks can go far in transforming your rental home from a moderately profitable one into a high-yielding, in-demand property.
Principles for Increasing Rental Property Price
These are simple guidelines to improve the overall rentability of your property. Check against the current state of your rental home. There are bound to be at least a couple of aspects that can be made more profitable.
Sell them comfort
When people rent a home, one of their main concerns is how comfortable they will be while living in it. You don’t want tenants to say no because of an avoidable deal-breaker, so emphasize the parts of your property that display this.
Firstly make sure you have water heaters installed in your home. A functioning water heating system assures tenants of a hassle-free experience, whether for cooking, cleaning, or showering.
You should also highlight resting areas such as the living room and bedrooms. These are spaces that people frequent, so tenants will pay more attention to what they look like.
Beautify your front yard
No matter how good your interiors are, many potential tenants are easily turned away by a lackluster front yard. You have to make sure your property makes a good first impression.
You don’t have to make grand changes. Are the color and decoration on your front porch inviting? Give it a fresh coat of paint or install better windows and awnings. You can also add a swing and outdoor seating.
Pay attention to the look of your lawn, too. Good landscaping goes a long way in giving your property the price boost it needs. It also signals that your home is well taken care of.
Market a full experience
When you are putting your property up for rent, remember that you are not just marketing a house. You are aiming to sell potential renters a living experience.
Is your property in a prime location? That in itself is a license to increase your rent price. A good location is an advantage that automatically makes your property more attractive to renters.
If your property is not in a popular area, there are still several ways to market it well. Is it close to a convenience store or a grocery? Are there famous restaurants, parks, or other landmarks a few minutes away? These make a property unique and interesting.
Win tenants over with good interiors
When you own a home, the instinct is to decorate it according to your preferences. The downside of this is that these preferences may not always be the most appealing to renters. Think like a renter when decorating.
When you decorate your rental home, prioritize mass appeal over personal taste. This will guarantee that your property will appeal to a broad group of people.
Take inspiration from popular styles in rental homes, such as a tasteful, muted palette. One or two statement pieces may also help to make it more eye-catching.
Offer extra amenities
One way to outshine your competitors is to provide high-quality amenities in your home. If you have room for it in your budget, consider upgrading your kitchen and home appliances. A top-class oven, stove, or even home entertainment set can be the trick that seals the deal for some tenants.
Are You Underpricing?
Calculate rental yield to see how much you are currently earning through it your property. When you take annual expenses into account, there are times when your earning may not seem substantial. This may be happening because you are undervaluing your property.
How you market, your rental home affects price more than you think it does. Are you highlighting its best and unique aspects? Are the photos you have online working against or in favor of your property?
Take a look at competitor prices, too, to see how you can price your property against these. Note that many tenants are willing to pay a little more for better interiors and amenities, so don’t immediately be pressured into lowering your price to match your competition.
Be confident in what your property has to offer, and make sure it shows how you advertise it. Let your future tenants see what you see in your property.