To what extend do small improvement raise the rent?

Question

If I rent out my apartment, how much will painting, fixing up the kitchen and bathroom, etc, raise the rent (in percentage to the money I put in)?

I may be forced to rent before selling, although I'll try to avoid it, due to circumstances I'll write in another post.

Theresa Harris · Answer

Some times it is about they type of tenant you get rather than how much more you get in rent. A place that is in good condition will usually attract a better tenant who stays longer compared to a place that needs a bit of work.

If you don't have it, things like adding a washer and dryer are simple things where you can add $50 to the price of rent and they pay for themselves quickly. Just make sure the tenant is paying for water and electricity.

Kenneth Garrett · Answer

@Galit Garsiel

The only way to know if small improvements will benefit you is by looking at your competition. Go to apartment.com, there you can see what apartment competition you have. Sometimes the improvements make it easier to rent versus higher rent. If you can reduce the DOM then it is like putting cash in your pocket. If it typically takes 30 days to fill a unit, but you can reduce that to 15 and rent is $1000. You just made $500. Might not seem like a lot, but anytime you can beat your competition that’s money in your pocket. Furthermore if your competition has old worn out appliances and bad paint jobs, you might be able to charge an extra $50-$75 a month in rent. At the end it depends on your market.

Jared Hottle · Answer

So there is no way that managers or owners advertise rental properties with pictures in your area? Maybe not Zillow or apartments.com but use whatever is used in your area to advertise rentals. If truly there is no way people are advertising their listings online then call up some for rent signs or property managers you know in town and offer them $50-100 to show you a few units as you are wanting to get into into investing and want to see what current rentals look like.

Adam Martin · Answer

I would first find out how tenants in your area find housing so that you can check out your competition, get an idea of rents, and know where to post once you are ready. Just google apartments in your area and I bet you come up with whatever rental sites are common in your area. At least in the US there are a lot of laws for rentals so I also suggest looking into the rules to see if you even want to get into the business.

As far as what upgrades, paint is cheap and will make the biggest difference. If your flooring is stained or worn you are also going to want to replace that. Just remember that when a tenant rents, they are basing this off of pictures you select online and a quick 15-30 minute walkthrough so focus on what they see when they walk in the door, the kitchen, and the bathrooms. Don't go overboard but make the place look nice. You will make more money this way either through increased rent, lower vacancy, or a better pool of tenants to choose from, possibly all 3. Every location can be rented, there is a person for everything but that doesn't mean you would be getting the best price.

Eliott Elias · Answer

Depends on what comparables look like. Impossible to give a number based off renovations you do

Galit Garsiel · Answer

I have a laundry machine, but non dryer. I have a clothesline in the room with the laundry machine. I'll buy a dryer and put it next to the laundry machine.

To what extend do small improvement raise the rent?

To what extend do small improvement raise the rent?

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