8 Improvements That Will Add Value to Your Rental Property

Successful real estate investing requires investors to keep an eye toward creating value in the property.

Negative first impressions don't discourage an investor's enthusiasm concerning a property, and investment decisions aren't made on whether the investor likes or dislikes the property. Instead, the successful real estate investor judges the property's potential profitability, and makes a determination, based on thorough market research, whether he or she can spend some amount of money to boost the value of the property perhaps by 2-3 times that amount.

In this article, we'll look at eight improvements you can consider making to a rental income property that could easily boost the value of the property and possibly reap you a great return.

1. Clean the Property

Consider this the trickle effect: Cleaner units attract higher-quality tenants, and investors pay more for properties with better tenants because better tenants mean lower risk, less trouble, and surer rent collections.

Rental units that aren't meticulously maintained turn off top-quality renters. They go elsewhere, and instead, those tenants willing to accept units with dirt-encrusted windows and light fixtures, stained carpets, grease-layered stoves, and dust-laden window blinds stream in and likely treat your property as a pigpen.

When you display a pride-of-ownership cleanliness, you not only attract better-quality tenants, you show your tenants the degree of cleanliness you expect. Likewise, when you do plan to sell the property to another investor, a spotless unit will sell quicker and at a higher price.

2. Update Color Schemes, Patterns, and Fixtures

You can quickly add to the appeal of your units with modern color schemes, or special touches like chair moldings, mirrors, fancy plumbing, light fixtures, or patterned tile floors. The rule is not to go wild with creativity or personal flair, but add just the right amount of interest to make your units stand out from the competition.

3. Create More Usable Space

If you can figure out how to create more usable space at your property, you will increase its value. Keep asking yourself, "How can I use or create space to enhance sales appeal or generate more income from these units?" Maybe you can convert an attic, garage, or basement to additional living area, or perhaps enclose a porch or patio, add a second story, or build an accessory apartment.

Also, think about remodeling the living area within the units so every storage and living area within the apartment is sized proportionally to market tastes and preferences. You might be able to reduce the size of large rooms by adding walls or separate areas, for example, or perhaps you can combine small rooms to make larger areas. Bear in mind, prospects are typically reluctant to pay top rents or a top price when room or floor areas are perceived as "too large" or "too small".

4. Create a View

Whenever you can find properties that fail to capture a potential view of a lake, ocean, mountain range, park, or woods, you have discovered a great way to add value to a property.

5. Capitalize on Creative Possibilities

Profitable improvements begin with creative imagination. Rather than rushing into slapping on a fresh coat of white paint and laying new beige wall-to-wall carpeting, think outside the box and try to imagine some creative possibilities. You might be surprised with the result of not limiting yourself to such commonplace ideas.

6. Eliminate a Negative View

It should go without saying; some buildings devalue because they look out directly onto an alley, another building, or perhaps power lines. If you can eliminate the negative view and convert it into something attractive, perhaps by changing the location of a window, creative landscaping, or by adding decorative fencing, you will add value to your property.

7. Amplify Natural Light

Tenants and investors prefer properties with lots of natural light. Consider adding or enlarging windows, swapping solid doors with glass inlays, or installing skylights. You can also make the units appear more spacious with lighter paint, carpet, and window treatments, painting over brick fireplaces, or by tearing out that low, false ceiling.

8. Reduce Noise

Tenants pay a premium for quiet. Consider insulation, caulking, trees, shrubs, and soundproof windows to enhance quiet. The more you can muffle or eliminate outside (or adjoining apartment) noise, the better. In fact, before you buy a multi-unit building, test the soundproofing between units. If you can hear a television, people walking or talking, or toilets flushing, beware. Unless you can figure out a solution to the noise problem, you will hear multiple complaints and contend with high tenant turnover.

James Kobzeff is the developer of ProAPOD - superior real estate investment analysis software solutions since 2000. Create cash flow and rates of return analysis presentations in minutes! See at => www.proapod.com