I am a first time landlord. Should I update the property?

Question

I am a first time landlord in southeast Texas. Please rain wisdom down on me!

Lee S. · Answer

amazing what some cabinet paint, quartz or granite counter tops and some stainless appliances will do for a home. I've done 2 BRRRR's and people are giddy when they see the place compared to other rentals that haven't been updated in 20-30 years. I believe it will allow me to have higher class tenants (I would call these B homes based on price, location/neighborhood are great).

John Renter · Answer

Hi Theresa! A landlord on the next street is renting his property for 1200 without updates, but with 100 more sqft. I figured I could update my property and raise him 100. We'll see what the market tells me. I will advertise heavily and consult an agent if no one bites after a couple of weeks. Thank you for your response.

John Renter · Answer

Thank you for your help. The house is livable now. I updated fixtures and and ceiling fans also. I think I am going to cap my spending now. I figured I should do enough to justify the asking rent amount. Instead, I will just advertise and let the market tell me what my rent should be like ou suggested. Thanks a lot!

Teresa F. · Answer

Hi John, Go check out your competition. What are they offering?

Still not sure? Have an open house and see who comes and what they say.

Too much work? Ask a local real estate agent to walk the house and give you feedback. Best, Teresa

Oliver Sparks · Answer

Is the house safe and livable/decent as it is? If so, I'd focus on taking care of those items that are cheap and attractive to renters, like you're doing by painting and doing flooring. But don't spend much more money than necessary. You'll know if you're asking too much for rent based on whether or not you get any good prospects in a reasonable amount of time. And I'd initially focus on building up a good cushion/capX right away. Good luck!

John Renter · Answer

Similar home, but 3/2 in the same neighborhood sold for 95 last year.

John Renter · Answer

I'm not sure how to measure the upside on rent. Comps with 3/2 are renting for about 1350 in strongly desired neighborhoods. My property is in a slightly less desired neighborhood and I'm asking 1300 for a 4/2. House is worth 75 on Zillow but about 110 to me. I have installed new laminate floors and a new complete central air unit. I am painting the entire interior and changing the toilets. Not sure if I went over board or not. I'm only in 14 grand total including purchase price so far.

Jeff Dulla · Answer

Do you have contacts to help update the property? Do you know what the potential upside is on rent? Potential upside on value?

I am a first time landlord. Should I update the property?

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