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As an investor, you want your rental properties to provide the best value for your tenants while generating a strong and consistent cash flow. However, in order to achieve this goal, you need to put in the work. Fortunately, there are plenty of projects and improvements you can perform in order to turn your properties into high-quality, luxury rental properties.
While some rookie investors may simply think that they can set the right above the average market rent in order to make money, the truth is that most renters are not going to willingly take that sort of deal unless the property is truly worth that higher price. So, it is important that you make sure the value of your luxury rental properties align with the rent you are charging.
In order to help you maximize the value of your rental properties for you and your tenants, here are five key improvements you can make to create luxury rental properties.
However, before we dive in, if you want to learn how to properly finance luxury rentals, click the link below to book a free strategy call with our team at LendCity today.
Update Your Appliances to Create Luxury Rental Properties
One of the easiest ways to make tenants feel like a rental property is truly worth paying a luxury price is to provide them with the best, most up-to-date appliances on the market. This can make each room feel just a little bit better while creating a more positive overall outlook on the property.
In the kitchen, some of the main features you should consider is a high-quality stovetop and oven. Regardless of whether these are combined as a single unit, or separated as two different appliances, what truly matters is that they have up to date features. Ideally, you want an induction cooktop and a convection oven so that things are more energy efficient while also cooking meals and cooling themselves back down at a manageable rate. This will reduce the hot, stuffy feeling that homes can get while you are cooking.
In the bathrooms, you should invest in comfortable toilets with multiple flush settings so that they can be more water efficient. As well, an updated bathtub and/or shower will provide a sense of luxury and comfort that your tenants will value quite highly.
Provide High-Quality Furniture to Create Luxury Rental Properties
Another great method to provide a luxury experience in your rental properties is to furnish your rentals with high-quality furniture. Not only will the furniture provide an inherit sense of comfort to your tenants, but it will also eliminate the pressure for them to determine a layout for the property that works for them.
Many tenants are willing to pay premium prices for well furnished rentals because they save the tenant the time and money associated with buying furniture and determining a floor plan for their property.
However, while it can be valuable to provide furnished rentals, you should always leave enough room for the tenant to decorate and add their own personality into their living space, so it does not feel like they are moving into someone else’s home.
Discover How To Analyze a Properties Cash Flow With This Step By Step Guide
Improve The Curb Appeal to Create Luxury Rental Properties
Over the years, developers and construction companies have been forced to work faster than ever to build new housing in order to try to accommodate the ever-expanding population of Canada. However, in the process of trying to meet that demand, one of the first things to fall by the wayside was the importance of landscaping and building a property with strong curb appeal. So, in order to make your properties stand out, you should put work into bolstering the property’s curb appeal.
One of the best ways to build up the property’s curb appeal is to update the landscaping. A well sculpted lawn with some simple features such as decorative stonework or well-trimmed hedges can go a long way. As well, you can look into improving the exterior of the house itself by adding accenting features such as flower boxes, exterior blinds, and a different coloured door.
Replace The Flooring to Create Luxury Rental Properties
One seemingly mundane feature that you can improve in order to increase the value of your rentals is the flooring. If your property has old, outdated flooring or worn-down carpets and tiles, you can raise the value of the property by replacing them with newly finished tile or hardwood floors.
Invest In The Surrounding Neighbourhood to Create Luxury Rental Properties
One of the most overlooked methods of increasing the value of your property is by investing in the surrounding neighbourhood. Often, if your property is one of the nicest ones in the neighbourhood you may find that you reach a cap on the amount you are able to charge in rent while still successfully finding tenants for each of your units. Often this is because the neighbourhood itself is viewed as low-value and begins to hold you back.
The best way to beat this is to invest further into improving the neighbourhood and brining up local property values. You can do this through buying more properties in a particular area to build up, investing in local businesses, or supporting neighbourhood improvement efforts through local committees.
Maximizing Cash Flow for Luxury Rental Properites By Optimizing Your Mortgages
If you are looking for a way to maximize your cash flow without hiking your rents on your investment properties, give us a call at LendCity to talk about optimizing your mortgage by reducing your monthly payments. By switching to a mortgage with lower monthly payments, your maximum cash flow each month will grow because you will not need to spend as much to cover your expenses. Of course, this option does come with longer amortization periods and thus more of your income going towards interest over the lifetime of your mortgage.
To find the option that is best for you, give us a call and book an appointment to speak with one of our agents today. You can reach us at 519-960-0370 or you can find us online at LendCity.ca Alternatively, you can click the link to book a free strategy call today.