12 Shortcuts for Increasing Property Value in Record Time
Are your rental properties looking a little run down and dreary? Renters like shiny, bright, and new. You ve probably experienced this phenomenon yourself. Mowing the lawn and trimming the hedges can mean the difference between a signed contract and a rental property sitting empty. Not only do well-kept properties attract great renters, but they increase the overall value of your property, which means you can charge more for rent, and ultimately sell at a higher price when you are ready to move on to bigger and better. Last year, home values in Pasadena increased by 12.3%. And it looks like that increase is only the beginning. Experts predict another 6% climb next year. You can add another couple of percentage points to that increase with a little time and money. Page 2
On the other hand, a property in disrepair can decrease value by up to 20%. Whether you need some light maintenance, or a major update, we want to show you some of the easiest things you can do to increase property value quickly and with minimal cost. Think like an appraiser or potential home buyer when deciding what needs your attention the most. Appraisers and potential buyers will see the drippy faucet and ignore the new curtains. Imagine your property without anything in it. What s left is what you should be concerned most about keeping maintained. Ready to get the most out of your rental, and never leave it empty again? Read on. #1 Curb Appeal The landscaping around your property is the first thing potential tenants see when they inspect your property. Neat, pretty grounds around a building sends the message that this is a property that is well-cared for. Quick and Cheap Fixes Page 3
Keep the grass green and trimmed, plant some bright flowers, and add bark or other mulch around plantings to keep the weeds at bay. Perennials such as tulips or day lilies are inexpensive, continue to bloom year after year, and are the easiest way to increase curb appeal. #2 New Paint Paint is relatively cheap and is amazingly transformative. A new coat of paint will literally make a room look ten years younger. Scuffs and stains build up over the years, especially in a rental property. These small marks may not seem to stand out, but the eye notices them unconsciously and it sends a message of dinginess and age, even if the room is spotless in all other respects. Page 4
#3 Window Treatments Are you tired of those dust-ridden Venetian blinds that are constantly breaking? If you hate them, so will your tenants. Replace them with high quality pull down shades or simple curtains. Not only will they add beauty and style to the rooms, but they are often easier to care for than blinds. You ll retain the privacy factor and upgrade the room in one fell swoop. #4 Cleanliness Possibly the easiest and cheapest way to improve the value of any property is to clean it. A good deep cleaning of any home or apartment will improve its value immediately. Don t overlook things like walls, baseboards and cabinets. Future tenants will look favorably on rental units that are extremely clean and sanitary. #5 Minor Kitchen and Bathroom Updates A clean, modern kitchen and sparkling bathrooms go a long way toward increasing property value. In fact, kitchens and baths are the number one upgrade that realtors suggest to clients when selling their home. It has the most impact on potential buyers. This goes for tenants, as well. Walking into a home or apartment Page 5
with an updated kitchen and clean, new bathrooms has a positive psychological effect on buyers and renters alike. And it doesn t take a full overhaul to get that positive effect. Replace old, ugly, or outdated countertops and appliances when necessary. Update cabinet doors and drawer fronts. Swap light fixtures that look like they came from a 1970s sitcom. Even replacing faded or stained outlet covers can change the look of a room. It is often the little details that make the biggest difference, and cost the least. Mid-Level Maintenance #6 HVAC Checkup Investing in a checkup for your heating, AC, and ventilation can save you from costly repairs and replacements down the road. It s easy to ignore the health of your heating or air because it s out of sight. But when it breaks, it can become uncomfortable for your tenants, not to mention, expensive. An up-to-date or at least fully functional HVAC system is a major concern for prospective tenants. They ll want to know about the system and discerning tenants will even take a look at it as they walk through your property. Regular maintenance Page 6
costs far less than big repairs so keep your HVAC at the top of its game. #7 The Roof Your roof is another part of your property that s out of sight and out of mind. But it really takes a beating, especially over the winter. Maintenance on your roof can repair damage done by ice, hail, and water. Don t wait until your tenants call you with a leak before you get your roof checked out. While you re at it, get your gutters cleaned out so you can avoid backups and resulting liability issues. Page 7
#8 Dryer Vents and Washing Machine Hoses While the washer and dryer may not be a part of your property, the vent and plumbing are. Some attention occasionally will help you avoid flooding and fires both potentially devastating disasters. The dryer vent is a dusty, linty place. Over time, lint builds up and can cause problems with the dryer and your property.. Even if the dryer belongs to your tenant, cleaning dryer vents sidesteps major issues. Washing machine hoses and plumbing are used day in and day out. They crack and wear over time and develop miniscule leaks. Tiny leaks put you at risk for mold and water damage. Have your property manager check on both hoses and plumbing occasionally. #9 Drains and Pipes Plumbing problems cause the worst kind of emergencies. Don t let a slow drain turn into full-fledged flood that threatens the very structure of your property. Encourage your tenants to call on a slow drain or finicky water heater. Catching problems early can mean the difference between a disaster and a minor delay. Page 8
Major Overhauls #10 Convert to Energy Efficient An efficient home means lower utility bills and less impact on the environment both points of value for your property. Simply redoing caulk around windows and doors, adding some weather stripping, or increasing insulation can make a difference to your heating and cooling costs. Or, you can invest a little more and go with bigger maintenance plans. Upgrading appliances to energy saving models, replacing older windows, or installing alternative energy producers (solar panelsand the like) add considerable value to your home. #11 Kitchen and Bathroom Remodels Pasadena is an established city. There is little new home construction. That means that anything new in your home increases its value considerably. The single most value-adding project you could undertake is to update your kitchen. The kitchen is the make or break point for most home buyers. Page 9
#12 New Floors A floor update can transform your property think of the impact of getting rid of that dated shag carpet. Another value increaser is hardwood floors (or hardwood look-a-likes). This trend in flooring brings not only an updated feel to your property, but truly adds timeless value. Hardwood, when properly cared for, can last for decades. It makes a house feel like a home and gives tenants a feeling of permanence. Tile is also timeless and trendy. A little tile magic in the bathroom can make the space feel luxury and give you added value. Take the Plunge The biggest hindrances to you increasing the value of your property are time and money. Turn to someone you can trust to make some or all of these simple value increasing tactics to get the most out of your property today and in the future. ABC would love to help you with your projects, big or small. Give us a call today. Page 10