5 Ways to Remodel Your Rental Property to Increase Cash Flow in Salem, OR
Property owners and good property management companies understand the value of maintenance and repairs to their rental properties. They are more than willing to front the cost of a new coat of paint, floor & gutter repairs, etc. Understandably, rental property owners might be more hesitant to invest additional cash into remodeling on top of the current expenses of owning a property. What some property owners may not know is that some of these expenses, in moderation of course, are deductible on your tax return.
It can be a delicate balance between regular repairs, property upgrades and generating a return on your investment. It can feel as though you are going backwards when you look at the initial cost of remodeling your rental property. Almost all remodeling adds value, however, certain things bring more bang for the buck.
It's important to remember that it is a beneficial long-term investment to raise the value of your rental property. This creates more equity in the long run, boosts your net worth and is better for the property owner.
In terms of remodeling to improve your cash flow, here are some of the best suggestions. Of course, you can do the usual things like installing new flooring and painting… or even get a little sophisticated by painting an accent wall! If you are looking to create more cash flow, consider these remodeling suggestions.
- Landscaping: You hear it time and time again…CURB APPEAL!!! You want the first impression to be one to remember and you only get one time to make that first impression.
- Exterior Finishes: Doing small things like painting the front door and the trim around the door is a small job that can really make your home stand out. You can replace the porch light with a newer light fixture to add a modern touch. Buying an outside welcome mat is a great, inexpensive idea as well. You can also spruce up the outside by painting the front steps or replacing the address numbers.
- Add a Ceiling Fan or Dimmer Switch in the Living Area: The visual difference of a ceiling fan and the ability to dim the lights in the living area may be the difference maker to a potential tenant.
- Put in Modern Appliances: Old and dishevelled appliances can make even the most well-designed kitchen seem unappealing. On the flip side, new appliances can help someone overlook features that may otherwise have problems with, like the size or the layout.
- Upgrade the Fixtures in the Kitchen or Bathroom: Renters tend to love nice deep kitchen sinks and newer looking fixtures. Often, bathrooms are small enough that a new sink and fixtures becomes the center of attention. For some renters, the kitchen is the deal maker or deal breaker and the kitchen sink has a lot to do with its functionality.
Remember that increasing your cash flow is not just about getting more in monthly rental income but also about how fast you can rent your property. Consider the market that you are in, as every geographic area and demographic is different. Know your clients and know your competition. An effective property management company can make sure that your rental stacks up well by checking out some comparable homes for rent in your area. Good luck and happy investing!!!