How do I get the most out of my rental

5 Replies

Good morning BP family,
As I mentioned to some of you last week my introduction into REI will be with the renting of my current residence ideally before my husband and I move into our new property later this year (construction is expected to be complete by October). The rental is a condo I purchased about 6 years ago, 2/2, with about 1200 sqft.

The location is very close to a local university so I know a large part of my rental market will include college students (I'm not crazy about that but oh well) but there are also an appreciable amount of new construction apartment buildings going up in the area. To better compete my husband and I felt we should invest in a few cosmetic upgrades (vinyl plank flooring, replacing countertops, and appliances). I'm still a little nervous, though, that we won't be able to get top dollar in rent. The comps in the area have a huge range from $650 to $1300 but of course this based on the varying amenities these larger complexes can offer. Any tips on how to get the most bang for my buck? Should I market towards single families a bit more than the college crowd? How have some of you been able to get the exact rent you wanted if not more?

Thanks a million,
Jasmine

@Jasmine S. ...Get it in tip top shape..Inexpensive upgrades in kitchen and baths make a big impact..If it stands out from the others, you shouldn't have a problem get mid range rent...good luck!

over rehab to avoid issues and get better tenants

i believe I would get the house in good shape doing minor updates carpet, paint, cleaning, etc. Then I would start around 1,000$ a month to see if people are interested.

Thanks for the feedback everyone.

Nicholas $1000 is right where I would like to be honestly and I just want to make sure I can get that price without alot of pushback or concessions on my part (such as including cable and internet). Any thoughts on how much is too much to invest in some upgrades. Right now I think we are looking at between $1500 and $2000.

Again thanks everyone!

Originally posted by @Jasmine S. :
Thanks for the feedback everyone.
Nicholas $1000 is right where I would like to be honestly and I just want to make sure I can get that price without alot of pushback or concessions on my part (such as including cable and internet). Any thoughts on how much is too much to invest in some upgrades. Right now I think we are looking at between $1500 and $2000.

Again thanks everyone!

Every market is different. You can upgrade to oblivion, but your neighborhood can only support a specific rent regardless of house nicely appointed it is. Use your budget to make smart upgrades but also think about hardening the rental against tenants. Maybe go check out an open house or 2 nearby for a similar property to get some ideas on how nice you need to be for the rent you want to charge.

things like using satin paint if you choose to paint, adding doorstops to protect walls behind doors. Consider "like new"/refurbished appliances from nearby smaller appliance store if the ones in the kitchen are dated or past their lifecycle. Black sometimes might be much better value than stainless but you have to check availability and might get lucky. Maybe add simple cabinet door hardware/handles to prevent cabinets from getting grubby and add some class. Only do countertops if they look worn or very dated...

links on hardening rentals:

http://www.biggerpockets.com/forums/52/topics/68041-how-do-you-harden-your-rentals

http://www.biggerpockets.com/forums/311/topics/75451-bomb-proofing-rental-properties

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