Does a deck help strengthen a rental price?

Question

I just purchased a duplex and am looking for ways to maximize my rental income. Would adding a deck be a good way to justify a higher then median rental price?

Patti Robertson · Answer

What influences the price a tenant will pay more than anything else, is what competition is available on the day they are choosing their next home. You won’t get a higher rent just because yours has a deck if you are competingwith other rentals. It may help someone choose yours over another if the price is the same though. Decks require annual maintenance. I agree with the others that there are better places to spend your money.

Jonathan Taylor Smith · Answer

ANYTHING that makes the property more desirable to a prospective tenant has the potential to justify a higher rent. To that end, ANY and ALL improvements may count if the rent is being paid by the tenant directly and they care about the upgrades you've implemented. For instance having a fenced back yard may mean more to someone with a pet or children than otherwise - but you can't advertise or even say "Fenced Back Yard, Great for Kids!" - and somehow who likes to barbecue or sit out back may be willing to pay more to have a deck.

But if rent is being paid by Section 8 or some other program, they typically have set criteria for what features of the home have an impact on the rent paid. But a deck should certainly increase the property value.

Mike Giallanza · Answer

Tenants are the same as buyers, #1 on the list: kitchen; #2: master bedroom/bathroom. Big $$ for cap-ex should first go to these items, not a deck IMHO.

James Mc Ree · Answer

I agree with the others.  A deck would improve property appeal.  It would probably help find a tenant quicker and reduce vacancy.  It's hard to say what it would be worth in monthly rent.  Check out your competition.  If most have decks, you might need to add one or price your rental at a little bit of a discount, but probably not much.

In my market, a deck might be worth $25/month on typical $1,200 - $1,400/month rents.  Most rentals don't have them in my market.  Cost for me would be around $5,000 for a wooden deck - much more if you use Trex or other long-lasting materials.  In this analysis, I may get about $300/yr more for the deck, but it will take over 16 years to break even.  That isn't worth it.

If you decide to go forward with a deck, consider other benefits you might be able to market with it.  My properties are configured such that a deck would go over a driveway.  I could market a "covered parking spot" as a result of the deck.  That also is hard to value, but may increase the property's appeal.

Mags S. · Answer

I would also consider the liability of having a deck in a rental. I would opt for some of the other improvements as noted above or additional appliances like in-unit washer/dryer.

Frank Geiger · Answer

You may get more interest in the rental. But the others are right, you get a better ROI freshening up the interior.

Andrew S. · Answer

Depending on your situation, you may be able to go with a concrete patio instead of the deck.  Cheaper to put in place and much easier/cheaper to maintain; yet still gives tenants a nice outdoor space.

Michael Noto · Answer

There are things that add value to a rental, but I wouldn't think a deck would add value for the following reasons:

1. They are expensive to get installed.

2. It is one more thing to maintain over the years, driving up your yearly maintenance costs

3. It is one more thing for your tenants to slip on

4. Decks are not the norm for rentals so it is not something that is expected so why provide it?

Don Petrasek · Answer

@Nicholas Standford. You’d be far better off putting your dollars into a premium kitchen and/or bath.  I have a deck on my two family.  Prospective tenants notice it and think its great but they really don’t pay much attention to it...and the current tenants dont really use it much, so I can’t see it alone creating a premium rental rate.  Some granite in the kitchen with a nice backsplash or soaking tub in bath- yes.

John Teachout · Answer

Unless you build it yourself, decks can be very expensive, usually require permitting/inspection and there may not be a return in a small rent increase but it would in most cases make a property more appealing and thus may reduce turnover.

Does a deck help strengthen a rental price?

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