Are you a property owner in Chicago or would you like to be? If so, it is important to know how to increase the value of your investment property. Below, we offer 5 ways to add value to your Chicago rental!
As an investor in Chicago, you will want to make sure that you are getting all that you can from a property. When you crunch the numbers for your investment, you will likely find ways to create more value. In our latest post, we offer several ways you can increase the value of your investment property in Chicago!
Improving your curb appeal will help maximize your potential tenant’s first impression. When people decide if they want to rent a house or apartment, outdoor aesthetics can play a huge role. You can improve the curb appeal by adding a fresh coat of paint, planting some flowers, adding new hardware, or by simply clearing away any clutter that has built up. The outside of the property is the first thing people see, so make this impression count.
Is there something special you could add to the house that would make it stand out among the other available rentals? Take a look at who is renting in the area and what features they would appreciate. You could fence in the yard, add a wine fridge, or make the property more accessible. Small features can help your property stand out from others on the market.
Updated Kitchen or Bath
While a fully updated kitchen or bathroom can cost a lot of money, you can opt to do a partial update, fixing up certain elements to make it more modern. For example, you can paint or replace cabinet faces, add new hardware to the drawers and cupboards, or you can replace appliances to match each other. In the bathroom, you can add a new vanity, resurface the tub, paint, or add new shelving to give the room a facelift.
Cut Back On Expenses
When you run the numbers for your investment property, there will likely be some areas in which you can save money. Maybe you are including landscaping or utility costs in the rent. When the lease is up, you can modify the lease to defer these costs to your tenant. You can also look for ways to make maintenance more efficient and proactive. If you have a property manager, evaluate the cost and determine if their services are really necessary. You might find you are able to save money on the property in a number of ways.
If your property doesn’t have them already, adding solar panels can increase the value of your investment property. Not only will tenants see lower electric bills, but they will also be able to sell any surplus electricity generated back to the electric company in many cases. While this may prove to be a larger expenses upfront, it will ultimately help you to attract more tenants. It can also help if you should decide to sell or even move into the house yourself one day.
Raise The Rent
The property is only as valuable as you allow it to be. By simply raising the amount of rent you charge each month, you will instantly raise its value. Check out what comparable properties are renting for, making sure what you are charging is in line with others on the market. Investors will often neglect to raise the rent or keep an eye on what others are charging. As such, they can end up costing themselves thousands of dollars in lost revenue.