- To make your rental property stand out from the competition, focus on upgrades and amenities such as modern appliances, smart home technologies, and renovated interiors.
- Consider adding amenities like swimming pools or fitness centers for tenants to enjoy. On-site parking is also beneficial for attracting tenants.
- Hiring a property manager can help you manage the day-to-day operations of your rental property, such as tenant screening and lease agreements.
- Working with an accountant can provide you with tax benefits and financial guidance related to long-term wealth management strategies.
Being in the real estate business can be incredibly competitive, especially when you’re a rental property owner. Many people are drawn to investing in rental properties because of the potential for consistent income, tax advantages, and long-term appreciation. However, because this is such an attractive form of investment, there is often intense competition among rental property owners for tenants.
Statistics show that there were more than 44 million renters in 2022. This number has steadily been on the rise since 2005 and shows no signs of slowing down; according to projected data from the Joint Center for Housing Studies at Harvard University, it’s estimated that by 2030, there could be as many as 47 million renters in the United States. As a result of this growing population, many rental markets have become increasingly saturated, with landlords competing for qualified tenants.
As a result, the so-called passive income that many investors seek when they invest in rental properties is far from guaranteed. Making your rental property stand out in a crowded market requires careful consideration and creative thinking on behalf of the investor.
Here are some of the best tips for making your rental property work for you:
Focus on Upgrades and Amenities
Homeownership is not as attractive as it once was, especially with apartment or condominium living becoming increasingly popular. As a result, tenants expect higher-quality features in their rental properties. That means those with rental properties will have to upgrade to attract tenants. Here are a few upgrades to consider for the units you plan on renting out:
Modern appliances
Renters usually want modern appliances in the unit they’re renting, so investing in new energy-efficient appliances can be a great way to make your rental property stand out. Consider the kitchen and the bathroom as the ideal areas.
Smart technology
From temperature control systems to automated door locks and security cameras, there is no shortage of smart home technologies that could help you attract tenants. You can apply these pieces of technology to the bedroom or the living room area.
Renovated interiors
Things like fresh paint and updated fixtures can go a long way toward making your rental property more attractive. A beautiful interior is often the first thing a tenant will notice and can be a significant selling point for your rental property.
Amenities will also be ideal for making your rental property unique. Tenants will appreciate those features, especially if they have to choose among many properties in the same area. Here are a few to consider:
Swimming pool
The swimming pool will be a great amenity to add to your rental property. It might be worth investing in one if you don’t have one.
Fitness center
A fitness center is another excellent addition that tenants can use for their regular workouts or leisure activities. You can even consider adding outdoor spaces with yoga classes and other activities that could draw tenants to the property.
On-site parking
Parking is essential for many tenants when deciding on a rental unit, especially if they have multiple vehicles or need close access to public transportation. On-site parking can make your rental property stand out from the competition.
With those long-term upgrades and amenities, your apartment units will sell themselves. It might be a struggle at the start, but it will provide you with a stable income stream for many years.
Hire a Property Manager
Apartment rentals are a 24/7 responsibility because of variables like rental collection, maintenance and repairs, and tenant evictions. If you’re not comfortable managing all of these aspects, hiring a property manager might be worthwhile.
Property managers help you with the day-to-day operations and ensure that your rental property runs smoothly and efficiently. They can also provide insight into how to manage the properties best regarding tenant screening, lease agreements, marketing, and other duties associated with being a landlord.
A good property manager can also act as a buffer between yourself and any tenants should issues arise. Working with a rental homes property management company can save you time and money in the long run – and will ensure that your rental properties remain profitable for years to come.
Get an Accountant
While apartment rentals can provide you with a steady income stream, they can also be complex regarding taxes. It might be worth getting an accountant or financial adviser on your team to ensure that you’re taking full advantage of the tax benefits associated with owning rental properties.
A good accountant can help you navigate the complexities of rental property ownership and maximize your deductions. They will also be able to guide estate planning and retirement strategies – two critical aspects of long-term wealth management.
Final Thoughts
Rental property ownership is a great way to earn passive income and build long-term wealth. However, it can also be quite competitive and requires careful consideration on the part of the investor to make it work. By focusing on upgrades and amenities, hiring a property manager, and getting an accountant, you can make your rental property stand out from the competition – and put yourself in a prime position for success. With these tips in mind, you’ll be well on your way to making your rental property work for you!
