Key Takeaways
- Strategic property upgrades can justify higher rent by improving both the perceived and actual value of your rental home.
- Modern tenants prioritize comfort, energy efficiency, convenience, and lifestyle when evaluating rental properties.
- In Gilbert’s competitive rental market, well-maintained and updated properties are more likely to attract quality tenants and maximize rental income.
To maximize your rental income in the current rental market, landlords must do more than just increase their rents; they must be smart about it.
Modern tenants are sophisticated and savvy with their value calculations; they combine their assessments of the property with their comfort, convenience, efficiency, and lifestyle.
In Gilbert, Arizona, where there is strong demand for rental properties but also intense competition, there will be no luck for the landlord unless they implement strategic improvements to yield a higher rental rate through logical means rather than arbitrary adjustments.
In this guide by Keyrenter Gilbert, we’ll go over 5 easy and practical methods to increase the rental value of your rental property based upon the realities of today’s marketplace, enabling you to justify charging more rent due to your improved perceived and actual value.
1. Boost Curb Appeal and Create a Usable Outdoor Living Space
Most people’s first contact with a prospective rental unit will be from the outside, so maintaining an attractive and well-kept exterior communicates to the potential tenants that you care about your property, which translates into high expectations when viewing the interior of your rental home.
Enhancing the property’s curb appeal through simple improvements, such as:
- Landscaping
- Painting the front door
- Installing new exterior lighting
- Keeping walkways clear and well-maintained
These will increase its visual appeal and position competitively within an aesthetic-oriented market. Properties that look like they have been maintained will typically achieve higher rental amounts. Residential Life in Gilbert is primarily identified by its outdoor living spaces.
When you have usable outdoor living space, such as a patio, shaded sitting area, or landscaped backyard can provide quality of life and value to the property.
Enhancements:
- Add a pergola or shade structure
- Add outdoor furniture
- Install a low-maintenance landscape
These enhancements create additional living space, promote social/recreational use of these areas, and add to the desirability of the property.
2. Improve Interior Finishes With a Neutral Color Tone
The interior presentation of a property is critical to establishing the rental value of a property. Updating the finishes of an interior does not have to be an extensive renovation; rather, a few focused and well-executed improvements can create a dramatic impact.
Using fresh neutral colored paint, updated contemporary light fixtures, and updated hardware creates a clean and modern environment.
These types of improvements help potential tenants see themselves living in the space, increasing their emotional connection to the property. In addition to being more emotional, neutral finishes can appeal to a larger audience of potential renters.
Landscaping, a painted front door, exterior lighting updates, and walkway maintenance are all relatively easy upgrades that can greatly improve the aesthetic appeal of your building.
In a community where aesthetics are valued highly, enhancing the visual quality of a property will help to strengthen its position in the marketplace. By presenting a property that looks good upon entry, you are increasing your ability to charge more rent.
3. Enhance Energy Efficiency
Due to the climate of Gilbert, energy usage, especially for cooling, is a major factor. All properties that have energy-efficient systems improve comfort and provide cost savings to tenants, making them more appealing.
Improvements can include:
- Energy-efficient windows
- Improved insulation
- New HVAC equipment
- Programmable thermostats
These improvements lower utility costs and, therefore, create a more environmentally sustainable place to live, allowing for higher rental rates.
4. Update Kitchen and Bathrooms
Kitchens and bathrooms are often deciding factors when choosing whether or not to rent a property. Even slight renovations will increase their attractiveness.
Bathroom renovations can include replacing old appliances, providing new countertops, and installing contemporary fixtures. Renovations to a restroom may also include new vanity units, lighting, and/or water-saving fixtures.
These two rooms are used every day, and their condition has a direct effect on how tenants view the value of the property.
5. Provide Smart Home Service
Smart home technology is now part of everyday life, so having some type of smart home technology can set your property apart and help with rent prices.
Common smart home options:
- Smart Locks
- Video Doorbells
- Lighting Control by Phone/App
- Smart Thermostats
These smart products provide convenience, security, and energy savings that are part of what tenants expect in a modern home.
Improving Properties for Maximum Impact
The combined effect of incorporating all three parameters (aesthetic appeal, functional upgrades, and modern conveniences) determines rental value. Property owners must prioritize their improvements by determining their available funds to spend under budget, the type of tenant they are targeting, and the current demand/condition of their market segment.
By applying consistent incremental improvements, significant long-term effects can be achieved over the duration of time.
Balancing Investment With Return
To achieve rental income growth, property owners must spend capital on property improvements. However, not all property improvements generate equal levels of rental income.
To determine the best investment option for generating increased rental revenue, property owners should evaluate both the project’s construction cost and its potential rental revenue output.
Overall, landlords can provide consistent value to both themselves and their tenants by continuing to improve their properties over time. This can typically be accomplished through regular maintenance, periodic updates, and being responsive to what is being asked of the property and/or the market by tenants.
While focusing on one set of criteria for determining how much to charge for rent will help landlords to max their annual rent, this approach will only hold if both sets of criteria continue to be met.
Final Thoughts
Gilbert, Arizona, landlords will not be able to maximize their rental income by randomly selecting or creating arbitrary rent pricing criteria.
If landlords can improve upon the specific criteria that fit within their tenants’ expectations, as it relates to the landlords’ energy efficient systems, modern design capabilities and the functional living space they provide, then the landlords will not only appeal to their current tenants but also be able to increase the market value of their property.
Contact Keyrenter Gilbert to learn more about how you can get more rent for your Gilbert, AZ home!