If you’re looking to get involved in real estate, you can’t do any better than starting out in the rental market.
The skyrocketing price of homes has made homeownership unfeasible for younger generations, resulting in 36% of the nation’s households being occupied by renters. That might not sound particularly shocking until you consider that number is the largest number of renters occupying property since 1965. Across 90% of housing markets, the price of homes is greatly surpassing wage growth, which has resulted in homeownership being categorized as unaffordable for the typical American family in 55% of the almost 500 counties surveyed.
With the way things are going, home rental has become a high-demand space.
Still, Customers Are Picky
Just because they can’t afford to own a home of their own, that doesn’t mean that consumers will grab any property you chuck their way. Consumers want a certain set of amenities from their homes, seeking properties that meet a certain standard. They are still looking for, among the amenities we will go on to list later:
- Prime locations or homes that are close to employment opportunities, shopping centers, and nightlife.
- Homes with adequate space for all members of their family, as well as space for a remote home-office setup (which during Coronavirus became a necessity).
- Homes that pass basic safety standards and require minimal work to get to a liveable state. Cosmetic issues are fine, though they might turn some consumers away, issues that actively hamper functions they wish to perform inside the house? Those are usually a no-go.
As such, you’ll want to keep those basics in mind when investing in your first rental property. If the property you’re looking at doesn’t have one or all of those basics, don’t bother putting your time or money into it. You’ll likely need to borrow capital to invest in your first property, so you’ll want to make sure you can get your money’s worth by putting it into a property that can be turned around quickly with minimal effort.
Extra Amenities
But what if you’re looking to make your property even more appealing to your customer base? What if you’re looking to give it a little extra oomph to stun customers during open houses and acquire a range of interested parties quickly?
For that, read on: we’ll talk about the top amenities that consumers desire in their rental properties and how you can make sure you get your money’s worth out of each investment you make in your property.
Smart Appliances and Features
Technology has changed the real estate industry in more ways than one, allowing rental property managers new tools to conduct their business and altering customer expectations for rental properties. Smart features like app-based security systems, smart thermostats that adapt to renter needs, and the like, are becoming highly desired (if not expected) by renters.
While this isn’t exactly a renter “must-have” like some of the other items on this list, as the technology is still too new to be treated as the “default.” But, if you’re looking to give your property a modern feel, installing smart features is a great way to do it. A smart home security system is an especially strong addition to any rental property, as consumers will know that when they move in, they’re outfitted with an infrastructure that a lot of other rental properties don’t have that will keep them safe.
Walk-In Closets and Extra Storage Space
If you’ve ever seen a house-flipping TV series before, you know that the real estate moguls with a lot of experience in this business will swear by the value of walk-in closets. As it turns out, adding a walk-in closet or two to your rental property is a great extra amenity that many consumers have, in fact, come to desire. The great thing about walk-in closets is that they don’t often require much effort to install, not requiring any serious demolition or structural changes.
Consumers love seeing extra storage space in rental properties because it means they won’t have to spend extra money on storage solutions themselves. The more storage space you can afford would-be customers, the more likely it is that someone will pick up your property.
Renovate the Kitchen
Another great selling point is your kitchen. If you’re going to spend money on remodeling any part of your home, it should be your kitchen, outfitting it with state-of-the-art features that have been shown to attract consumers. You might want to consider installing an island, as kitchen islands combine the beauty of brand new countertops and extra workspace with extra storage space for appliances and kitchenware down below.
Other investments you might want to make are as follows:
- Energy-Star approved dishwasher
- Brand new cabinets
- Shiny new countertops, made of durable material
- New backsplashes that complement said countertops
Few Americans have the capital to purchase their own homes, but that doesn’t mean that they aren’t discerning when it comes to the rental properties they choose to inhabit. Making sure you’ve covered the basics and spending additional funds on other assets can be the best way to make sure you make good on your investment.
