This is the season when real estate investors start looking toward the New Year and ways to enhance their properties’ values. Real estate prices in North Texas continue to grow, but how can rental property owners create even more value out of their portfolios?
At HUNTAHOME, we work each day with real estate investors and rental property owners in the Dallas-Fort Worth area. As the leading provider of DFW property management services, we have first-hand insight into what owners are doing right now to increase property value. If you’re an investor or owner, here’s a look at 5 ways to increase your rental property’s value in 2020.
1. Low-Cost, High-Impact Updates
Properties start to lose their value when needed updates are pushed too far down the road. We’re talking about flooring, built-in appliances, countertops, cabinets and similar updates. If you fail to make gradual updates in these areas, they pile up over time — and they start to represent a costly, full-blow renovation project.
Take care of some important updates over time to spread out the cost and maintain the value of your rental property. For example, consider replacing existing floors with hardwoods in 2020, or take on a kitchen or bathroom renovation. Even swapping out dated appliances for new, energy-efficient models will help.
These updates are relatively low cost compared to the high impact they can make on your home’s value in 2020 and beyond.
2. Increase the Rentable Square Footage
Have you considered increasing the rentable square footage of your property? This isn’t a possibility for all floor plans, but you can often consider finishing out an attic, converting a back patio into a sunroom or transforming an underused garage into another living space.
Another option is subdividing a large bedroom into two separate bedrooms. This is particularly attractive in areas where younger renters tend to live with roommates. In most cases, the more square feet and the more bedrooms you have, the more rent you can charge.
3. Energy-Efficient Upgrades
Energy efficiency is a great way to boost the value of your
rental property. You can take traditional approaches like adding insulation to
your attic, re-sealing doors/windows, adding ceiling fans to bedrooms, etc. But
you can also explore more modern opportunities to increase a property’s energy
efficiency — like installing a tank-less water heater or adding a programmable
4. Curb Appeal Improvements
If you’re looking for a low investment that yields high returns, consider curb appeal improvements to your rental property.
Low-maintenance landscaping can make the exterior of your
property look much more appealing. A new front door is one of the top home updates for
ROI. And small exterior updates like new mailbox numbers, lighted walkways and
front-porch swings can really enhance your home’s curb appeal.
5. Raise Rent
Raising rent is perhaps the fastest and easiest way to increase your property’s value. The higher the baseline rent for your home, the more your home will fetch on the open market when selling to another investor.
Of course, this is easier said than done when you have a long-term tenant or when you’ve been charging far too little rent for far too long. But there are steps you can take to increase your rental rates over time. Commit to following the process and increasing your rental rates in 2020.
Get Support From a Property Management Pro
If you see 2020 as a huge opportunity to increase your property’s value, make sure you have the support you need to seize that opportunity. At HUNTAHOME, we provide property management in Dallas and Fort Worth. While we offer both comprehensive and a la carte services, we really specialize in helping owners make the most of their investments — whatever it takes.
If you have ideas about increasing your property’s value but need additional support or guidance, the leading provider of property management in Fort Worth and Dallas is here to help.
Simply get in touch with the team at HUNTAHOME, and we can answer your questions about property value or DFW property management in general.