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An empty room is a blank slate – a canvas that you can use to do whatever you want but to tenants it is dead space. However, an empty canvas does not help when you are trying to market a rental property or increase the value of an investment property.
Instead of leaving the responsibility of figuring out to do with dead space on your property, take the initiative to convert the room into something practical and marketable. This can help you make your property more appealing to ideal tenants or provide extra amenities in short-term rentals that will increase their demand.
So, let take a look at five rooms that can help you get the most out of your investment properties by eliminating dead space.
But first, if you are planning on refinancing a property did you know that eliminating dead space can go a long way to make your property appear more valuable in the long run? To learn more about what can help raise your property value on a refinance, click the link below for a free strategy call.
Dead Space Causes Problems
While dead space is full of potential and creates plenty of opportunities for you as an investor, it also means that you are passing up on the value that can be created in that dead space.
It also creates risks that your tenants may use a space incorrectly. For example, if you have a finished room in the basement of your property that has zero windows, a tenant may be tempted to convert it into a bedroom. However, in order for a bedroom to be considered safe and legal, it has to have at least one window.
Meanwhile, if you do something with the dead space and give it a purpose, you can eliminate the potential for the tenant to misuse the space.
Discover How To Stage A Home With This Step By Step Guide
Bring Dead Spaces in Your Property To Life
So, instead of leaving a dead space empty and waiting for your tenants to figure out what to do with it, here are five options you can use to bring it to life.
Currently, approximately 19 per cent of Canadians work exclusively from home. On top of that, the popularity of hybrid work models is quickly rising. As these trends continue to shift, the demands tenants will have while looking for rental properties will as well.
These spaces provide a nice disconnect within a home to help your tenants keep a strong work-life balance. As a result, a home office offers an excellent opportunity to cater your rentals to working professionals and students who may be looking to find a home that can accommodate their work structure without disrupting their day-to-day lives.
Similar to a home office, studios and multi-purpose rooms can be an excellent addition for tenants who want to explore their hobbies in a dedicated space or would like a room that can accommodate various activities without interfering with the rest of the home. Tenants can use this space to work from home, create crafts, or potentially set up a game room to spend time with family and friends.
These spaces are relatively easy to set up. All you need is some shelving or cabinets for the tenant to store things and a table for the tenant to work on and you are set.
Another excellent way to add purpose to the spaces on your properties is to build a basement bar or lounge space on the property. This creates a social and leisure environment that is well suited to families or tenants who would like to bring guests to visit.
These spaces are also valuable in short-term rentals and vacation properties because the renters are usually looking to enjoy their time away from home and will be satisfied to see the option.
Home theatres are an excellent addition for properties that are being marketed to younger families, however they are more expensive to set up than some of the other options if you would like to have them fully furnished.
Even if you are not planning to provide any of the electronics yourself but still want to make a room that can easily become a home theatre, consider taking the time to improve on the insulation and soundproofing in the room so that when the room is in use the rest of the home is not disrupted. These spaces also benefit from dimmer lighting or installing a dimmer switch to the existing lighting.
Much like bar and lounge spaces, home theatres can be an excellent addition to a short-term rental that will help it stand out against the competition while allowing you to charge more per night.
A home gym can be an expensive investment, so it may not be worthwhile to put one in a long-term single-family rental property. However, in multifamily properties and apartment complexes, home gyms can be an excellent investment that increase the appeal of the entire property while fostering a sense of community among residents.
In higher-end short term rentals, this can be an incredibly appealing for renters who want to maintain their fitness routine without paying to use an out-of-town gym. However, you should always consider the market demand in the region before making this investment.
Remember: Consider the Property Limitations When Designing a Space
Whenever you are designing a property and trying to make the most out of each room, take a moment to stop and think about the limitations of the space and when certain things would be impractical or poor design choices.
If you have a property that echoes or has little soundproofing, you may not want to include louder spaces such as home theatres or home gyms. If you do not have a large room to repurpose, then a bar and lounge may not be the best plan since they require space for preparation and socialization.
If you are looking to buy an investment property or need help securing the funds to upgrade your existing portfolio, our team at LendCity is here to help. We work with a vast network of experienced lenders so that you can get the funding you need for your next endeavour. You can reach our office at 519-960-0370 or you can visit us online at LendCity.ca Alternatively, click the link below to book a free strategy call with our team at LendCity today.