Landlords who are seeking better rental property ROI in Brentwood, CA can pay attention to a few specific things that will increase what they’re able to earn on their home. Making improvements to your property can increase its value, and provide you with a higher return. The key is to choose those improvements wisely, and not to lose money on unnecessary upgrades.
Identify Smart Upgrades
Think about what you currently have with your property, and imagine how you can increase what you have to offer. For example, if you have a three-bedroom home that also has a sitting room or a den that simply needs a closet in order to be considered a bedroom, that’s an easy upgrade to make. Install a closet door and some closet hardware, and suddenly you’ve added a bedroom to your property. That’s going to make a difference in how you market and price your property.
With the above example, the home’s value increases immediately. All it takes is a simple wall installation if the room isn’t in an enclosed space. If there’s not a closet in the room, it costs very little to install one. Creating one extra bedroom with the space you already have can increase what your home is worth, thus raising your ROI. Whether you’re renting it out now or planning to sell it in five years, you’ve just added value to that property, and you didn’t need to spend a lot.
Increase Cash Flow
Not only does adding a bedroom increase your long-term value; it also increases your short-term cash flow. It can mean renting out your property for $2,500 instead of $2,000. That’s a big difference and it more than pays for the cost of making the improvement. When you find an upgrade or an improvement that will cost you less than a month’s rent to make, you should jump on that opportunity.
This is just one example of how you can make improvements to your property with very little effort and money. Start with what you’ve already got, and go from there. If you have any questions about other ways to make improvements to your home that will increase its value and your ROI, please contact Select 1 Realty.