In the long term, residential properties are the safest type of real estate investment, and one that is guaranteed to secure your financial independence. Of course, not all properties provide equal returns at a given point, so residential real estate investors often diversify their portfolios with different types of rental properties, including condos, single-family homes, multi-family homes, etc. However, the question remains how can one make money through investing in these?
They say you can tell homeowners from renters by just driving through a neighbourhood, as the curb appeal is the area most investor-landlords neglect. If the crumbling fence paintwork is crying for a new coat, make it done, and don’t forget to power-hose the driveway. If you aren’t keen on landscaping yourself, hire someone to whip up those shrubs and trees into shape, and re-plant the flower beds. Even if you own condos, your job is to ensure your monthly Homeowner Association fees are put to good use – maintaining the exterior, lighting, landscaping, driveway, and the parking space.
Bathroom and Kitchen Makeover
These areas are associated with cleanliness and food preparation, so renters are extra sensitive when it comes to outdated fixtures, floors, or general neglect. However, rather than tearing everything out and spending a small fortune for a new kitchen or bathroom, you can simply repaint the walls, removing any traces of mould beforehand. Replace the outdated and worn out sink and the vanity with new ones, and furnish your cabinets and drawers with new handles. Taps and showerheads are inexpensive, and new ones will surely be appreciated. If you need a new kitchen range or a refrigerator, you can easily find good as new ones on the online classifieds.
Adding New Appliances
Since most renters in condos aren’t used to having a washing machine and a dryer, you can increase your potential rental income by providing your unit with an internal laundry area. You can even transform an existing laundry room into a useful storage space by fitting those two into kitchen cupboards. In addition, a reverse cycle air conditioner is an excellent add-on to your rental, especially in temperate regions, as it can be used for both heating and cooling. For the final touch, equip your rental kitchen with a second-hand dishwasher, and install it yourself.
Repurposing an Existing Space
If your rental has an unused extra space such as the attic or a backyard extension, one of the most feasible ways to gain additional income is to transform it into a home office. These days, more and more young people prefer working from home, with employees even encouraging ‘remote days’ to reduce traveling expenses and time lost commuting. If you decide to repurpose a room into an attractive home office, you’ll need quality office supplies like excellent Winc stationery. A broad and extensive range of products will enable your renters to have a fully functional office space ready for work, as soon as they move in.
While prospective tenants looking for a house will more likely appreciate an extra bathroom and two more bedrooms, for people renting condo units, an extra storage space is a much bigger bonus. Any increase in available storage space, either through strategically placed built-in wardrobes or by converting existing laundry rooms, can result in the increase of your rental income.
Adding a Parking Spot
If street parking is hard to come by in the rental area, you can build an off-street parking space and use it as a rent-increasing perk. In case the property already has a driveway, you can increase it usefulness by adding an extra car port. Clearly, a covered parking would be more appreciated, especially in areas where cars are often exposed to weather or bird droppings.
In addition to providing lodging to your tenants, your rental property should keep them and their belongings secured at all times. Solid wood or metal doors are always safer than those with glass partitions. If you live far away, or have a busy schedule that prevents you from keeping up with your property, hire a property manager who will screen potential tenants, maintain he location, and deal with daily affairs. Combined with external motion-actuated lighting, a home security system will deter potential intruders, give your tenants a peace of mind that they are safe within your property, and provide you with a justifiable excuse to increase the rent.
Lower risks and higher returns are the main reason why so many real estate investors prefer residential properties to commercial real estate. However, another reason is that residential rental units can easily be upgraded for an increased monthly rent.