With the continued and steady demand in the rental market, being an investor continues to be an enjoyable and profitable choice for many investors. Of course, it’s only enjoyable when it’s profitable and the more profits you make, the more you enjoy it. Hence, it only makes sense to look for creative ways to increase your profits.
At the end of the day, the rental market will only allow you to stretch your rent upwards so much until you reach a cap and you will no longer be able to rent it out for a price higher than that cap. After that we look to attack the opposite side of the coin by focusing on reducing costs and expenses, after all, these do eat up some of the profits and remember, investing is more enjoyable when it’s more profitable!
However, there is always a smarter way to carry things out. For these investors, it is knowing the right kind of affordable elements to add to their rental units.
The points below will help you make your rental properties durable by using economical solutions without making it look like something that has been compromised.
Remember, that going for the very cheap options even in the C class rentals will backfire as you will have to spend even more on them to get them fixed. Therefore, the key is to remain moderate and install the items that suit the class of your rentals.
Following is a list of economical and durable fixtures specially for the B and C class rentals to help the investors save money with rental units. Although these points are most applicable to investors investing in C or B class type of properties, the same logic applies to investors in the A class property space and can therefore also help.
1. Take it easy with the Bathrooms
You cannot install those lavish tile showers with rolling glass doors in your investment unit bathrooms expecting it to bring you fortunes. The best for such apartments is to opt for the economical bathtub showers like the one made out of fiberglass.
These are durable enough to last long and will also look decently fine. Moreover, cut that stylish sliding door out and use curtains instead. Not only are these options more fitting to your unit and economical, but they are also more durable, last longer, and retain significant appeal value overall.
2. No Lawn Embellishments
It is highly unlikely that someone will offer you more rent for your rental solely based on the landscaping alone. Although possible, and yes, exterior does matter, remember that it’s the local rental market that mostly decides what prospective tenants are willing to spend to rent your unit.
Do not invest in making the lawn look highly attractive. Keep it simple with a patch of grass that can be neatly trimmed once a while not costing too much. This will keep it all low maintenance and will save you a lot over the long run.
3. Hide that Washer and Dryer
You are not entitled to offer all the lavish appliances to your renter. Providing washer and a dryer may look nice to the renter but sooner or later those items will require maintenance, or even worse, replacement. Rather its best if you allow the tenant to have the option of having them installed or not installed in the unit at an additional cost.
It is always good to make the lease as customizable to the tenant. This will make the tenant feel they have options and control while you can benefit from the add on, small increases in rent amount. If they choose to include them, you upcharge, if they choose not to, then you save on any possible future maintenance. You win either way, but only if you make it optional for an additional cost. Of course, be reasonable.
4. Protect the Floors, but economically
When you are looking for ways to save money, avoiding wooden flooring is something you would like to do. Always try to go for carpets or vinyl in the rooms and tiles in the bathrooms. Tiles will save your bathroom floor and will add years to its life.
So, will be the use of carpets as they are easy on the wallet, low maintenance, and reduce noise that is an ideal for multifamily houses to reduce tenant noise across different units.
5. Granite and Laminate Kitchen countertops are our picks to help you save money with rental units
Since kitchen is always looked at carefully as people rent a house, laminate countertops or using granite to cover them will make them look great and will also help you save money with rental units. Not only such type of countertops add more beauty to the kitchen, they are also very easy to clean and durable.
Moreover, the kind of beauty they add to your kitchen play an important role in whether you get tenants easily. Solely by using these countertops, your kitchen gets that WOW factor that will surely awe the people visiting your rental and, thereby, improve the chances of sale. Don’t skimp out too much on the kitchen counters.
There are a variety of economically durable options for rentals that will help you as an investor keep more of your profits and make you a successful investor. The key is to only go for options and fixtures that match with the class of your property.
The idea for the rentals of these two classes is to keep it mediocre. Since lavish and high quality options are going to bring nothing extra back to you and the cheapest ones will need maintenance too often, both of them will go heavy on your budgets.
Lastly, always remember what kind of initial power originates and begins with a good structured lease. The lease is the foundation of your tenancy agreement and, believe it or not, it can creatively save you some bucks. You can always demand for the maintenance costs and can lease some electronics by simply cutting of a few bucks from their rent in a way that it suits your budget. Considering all of these 5 highly overlooked small things will help you save money with rental units, and of course help you enjoy and succeed in real estate investing.
Hi, I’m an inspired recent real estate investor named Miguel Rivera from a modest neighborhood called Pigeon Hill in Aurora, Illinois, the City of Lights! I started my investing journey in 2017 and I’m excited to continue to walk my chosen path to reach my ultimate financial goal of living off my rental income before I reach 35 years old! Driven by infinite growth potential and guided by my mentor, I managed to get started and make it work with just a modest salary, practically no education in the field, and learning and applying some key habits. This website is a collection of all things that I have learned so far that I wish can help other recent real estate investors! Click here to view more about my story.