How Can Property Value Be Improved With Minimal Investment?
RealEstateAdvice.net
How Can Property Value Be Improved With Minimal Investment?
We've gathered insights from seasoned Property Managers and Owners on how to boost a property's value on a budget. From adding desirable appliances and smart features to improving the tenant base and leasing at market rates, discover five cost-effective strategies that can significantly enhance your property's worth.
- Add Desirable Appliances and Smart Features
- Update Kitchen Countertops and Backsplashes
- Enhance Curb Appeal for Higher Attractiveness
- Refresh Landscaping and Update Fixtures
- Improve Tenant Base and Lease at Market Rates
Add Desirable Appliances and Smart Features
I have found that adding or upgrading appliances, such as a dishwasher or microwave, cannot increase value. However, even better is to add a washer and dryer, or even just the hookups for them, as they can not only add to the value but also increase the desirability.
Additionally, adding smart-home features such as automated lock systems and phone-controlled thermostats also adds value and preference.
By doing one or a few of these, not only will your rental be more desirable (so it will rent quicker), but the rent can be increased as well.
Update Kitchen Countertops and Backsplashes
We, as property management, regularly improve residential properties with minimal investment through the updating of kitchen countertops and backsplashes. This improvement can typically be completed during a normal property turnover between tenants and with our normal maintenance personnel, which reduces the overall investment. For rental-grade properties, this minimal investment can improve the property's value long-term, not only from an appraisal perspective but also from a cash-flow perspective by appealing to more potential tenants, which could increase rental rates for the property.
Enhance Curb Appeal for Higher Attractiveness
One of the most effective ways to boost a property's value with minimal investment is by enhancing its curb appeal. I once managed a property where the yard had been severely neglected—overgrown grass, unruly shrubs, and a sea of weeds were hiding the well-maintained home behind what looked like a jungle.
I decided to bring in a professional gardener, and after just two days of work and $800, the transformation was remarkable. The property went from looking like an eyesore to something straight out of an HGTV show. Within a week, it was rented out.
Curb appeal is the first impression potential buyers or renters have of a property. With a relatively small investment, you can significantly increase a property's value and attractiveness.
Refresh Landscaping and Update Fixtures
There was this older property that had great potential but was falling flat in terms of value. With a tight budget to work with, I decided to focus on a few key areas. We started by refreshing the landscaping, which involved some basic planting and mulching—nothing extravagant, but it made the exterior look much more inviting. Inside, we tackled the kitchen and bathrooms with new, inexpensive fixtures and hardware. We also used virtual staging to help potential buyers visualize the space better. These changes were minimal in cost but significantly enhanced the property's appeal and perceived value. As a result, the property quickly attracted offers and sold for a much higher price than we had anticipated. It was a testament to how thoughtful, budget-friendly improvements can yield impressive results.
Improve Tenant Base and Lease at Market Rates
We find that the best way to improve a property's value with minimal investment is by improving the tenant base and leasing up units. For example, we recently helped a client improve the value of their 5-unit property that was underperforming. Two units were vacant, and three units had problem tenants at below-market rent. We were able to make arrangements with the existing tenants to non-renew their leases and clean up and re-lease the units at market rent prices. We also completed minor updates to get the vacant units rent-ready and leased to quality tenants as well. The entire process took about six months, with a minor investment, but resulted in doubling the gross income and greatly increasing the property value.
