Improving Rental Property

When buying, or deciding to improve an income property, it is not in our best interest to look for what is most pleasing to us ... or our egos. The most important criteria are: what is most likely to attract and retain the best tenants; what will maximize our return on investment through higher rents and lower maintenance costs; what will provide the best curb-appeal, at the lowest cost, and require the least long-term maintenance.

Landscaping. The very first thing a potential buyer or tenant sees is the only thing that many neighbors or co-workers in a car pool see. The outside appearance of any home reflects on the occupants success and affluence to many more people than are ever invited in. It is an important ego thing for any tenant that the landscaping and outward appearance of their home makes a good impression.
Most tenants, however, will not plant or care for flowers and shrubs, so it is imperative that landlords choose cheaper, fast growing, and maintenance free, landscaping amenities. Perennials that bloom every year, without much maintenance are your best choice for flowers. But most important, choose something. A bare-bones yard looks cheap and commands cheap rent.

   Paint. The highest return on improvement dollars is in paint and decorating. Paint the front of a building with high quality paint, even if you must paint the balance with a lesser grade. Drive by prospects won't call back on ugly buildings.
      Interior painting leads to some of the most interesting debates we hear at rental housing association meetings. Old timers swear by "landlord white." Usually an off-white washable concoction that is used in every room of every unit. Often on woodwork trim and even ceilings.
      Enthusiastic new landlords start with the premise that they would never rent out a property that they wouldn't be proud to live in themselves. They put their heart and sole into decorating, with accent colors and wallpaper borders.
      We prefer the young enthusiastic approach, but usually revert to the old timer's solution because we have the paint left over and are in a hurry to get the unit occupied.

   Carpet. New or freshly cleaned carpet makes all the difference in how well a unit shows and how pleasant it is to live in. The type and quality you use should depend on the kind of tenant you wish to attract and keep.
      A favorite landlord solution for families with small children and pets is commercial carpet over a good quality rubber pad. The carpet wears well and is easy to clean. The pad makes it feel thick as well as preventing spills and pet deposits from penetrating through and into the floors.
      Carpet closets, halls, carpet over squeaky floors after first securing loose floorboards with paneling nails.
      You can even use carpet on some interior walls to deaden noise and as insulation. Buy remnants from major dealers or get discounted samples and seam together in a pattern.

Ceilings. Stains from roof or tub leaks are devastating to a showing. Paint with shellac or a product like KillsT first, then roll over with paint. With badly cracked plaster a new layer of ¼ drywall does wonders at low cost. Old fashioned high ceilings or those showing ducts, pipes and wiring, call for drop ceilings or other similar ideas.

Draperies. Use good quality lined draperies on the street side of your units. You can also cover walls that show pipes, cracks and other problems, with an imaginative use of floor length drapes, even without a window.
Use curtains and draperies to decorate inexpensively and create a larger feel to the rooms. Coordinate colors with the carpeting by generally using neutral colors, particularly in unfurnished units.
There are usually great buys on curtains and draperies at local Goodwill and Salvation Army stores. We always buy nice ones when we find them and keep them on hand.

Light Fixtures. Use quality uniformly, because it draws attention away from bland entrees and walls, to a highlight of the unit. Swag lamps and chandeliers command eye contact.

Wallpaper. Anytime you find quiet, attractive wallpaper on sale, at a greatly reduced price, consider it. Covering even one wall of a hallway, bedroom or bath makes a major improvement in how well a vacancy shows. Note how just a splash of paper improves this page.
Paper borders at chair-rail or near ceiling height can also help to make a room feel warm and homey. Wallpaper is usually much more expensive than paint, however if you buy carefully, or at closeout prices, it can be fairly competitive.
Whatever you choose should be "scrubable", not just washable, and it must be "strippable" after some tenant's children add their own artistic touches.

Plaster and Paneling. Cove ceilings and real wood add homeliness to any unit. But cheap photographic paneling looks cheap and commands a like amount of rent. Whenever we look at a property to buy a sure turn off is dropped ceilings and cheap paneling on every wall. It doesn't take an expert to know that they are hiding something.

Appliances. Do not provide appliances if you don't have to. Transient apartment dwellers may expect to have them provided, tenants in homes, townhouses and duplexes usually do not. There are several good reasons why professional landlords no longer provide appliances:

Although there my be appliances in the unit, their availability is not included in the rent. If tenants wish to use the appliances, they agree to assume all responsibility for care and maintenance. If tenants wish to use their own appliances, they may request that those in the unit be removed or stored elsewhere on the property.

RHOL members have access to several pages of lease clauses addressing issues, like the the one above, that can be copied and pasted into your agreements. See the Property Management Web.