When shopping for rental properties, an investor can get better deals if they know what to look for. Going property shopping without any idea of what type of property you hope to buy can lead to impulse purchases that could bring a ton of regret in the future.
Buying the cheapest property available may be tempting, but it’s not always worth it. Focusing on the earning potential instead of the price can help an investor make a more calculated decision that increases the chances of financial success.
The real value and potential of a property are not always obvious, even after the first glance. But that might be an advantage for a hopeful investor because it would be easier to negotiate for a lower price. There are a few details one can look for in a property that he can transform to increase the rental value.
Keeping an eye for these often-unnoticeable details is one of the best ways to acquire a highly profitable rental property.
The Other Room
Some two-bedroom apartments have a “hidden bedroom.” I’m not specifically referring to a secret bedroom behind a bookshelf (although that would be cool, too), and it may not be exactly hidden. What I am pertaining to is a room that serves a different purpose, other than a spot for sleeping.
For example, some two-bedroom apartments have a storage room that is big enough to be converted into a third bedroom.
Sprucing it up and adding bedroom furniture and decor would be an added cost, but the added rent income would be worth it. The rent for a three-bedroom apartment is significantly higher than that of a two-bedroom one. There is also a wide market for three-bedroom rental homes because they can accommodate medium-sized families but can still appeal to small-sized families who still have plans of growing.
Potential for an Open Floor Plan
Open spaces are not as trendy before as it is now. That is why a lot of older rental homes for sale are characterized by compartmentalization that has lots of walls separating one room from another. Such walls can make a space look smaller and feel claustrophobic.
If the plan is to offer open-concept living, a property where common rooms are divided only by walls would be a good buy. Removing walls to connect the living room, dining area, and kitchen will achieve that spacious feel. It can attract more close-knit families who want to engage with each other even if they are not in the same area of the house or multi-taskers who want to watch TV in the living room while preparing dinner in the kitchen.
Before considering the plan, one must ensure that it is possible to take down the walls. Some walls are not as easy to knock down, and some are load-bearing, which means it holds the weight of the ceiling or second floor. Also, make sure that the common rooms are arranged in a way that there will be a continuous flow if the walls are removed.
Window of Opportunity
Speaking of making spaces look bigger, a detail to look for when shopping for a rental property are spots where a new window can be installed.
Not only can windows extend the space visually, but they can also help the tenant save on the utility bills because more daylight can illuminate the indoor space. Energy efficiency can translate to higher rental rates but still attract more tenants. A listing on Padleads for an energy-efficient home will have higher marketability, bringing in strong leads and closing deals in a matter of days.
Windows are also less expensive compared to the other details mentioned above. The minimal additional costs will be worth the increase in market value.
When executed properly, you can highlight these changes when marketing your newly-bought rental property to potential tenants. Create a listing on Padleads and add photos of the upgrades you made to grab the attention of home-hunters.