Research shows that Charlotte, NC, real estate market prices are 11.7% higher in 2021 than 2020.
If you put this in the COVID-19 pandemic context, it's an incredible tide lifting the fortunes of property owners. As more people come to Charlotte, NC, landlords need to prepare their property to cash in on the trend.
Here's a look at four indispensable ways to add value to your rental property to earn more from it.
1. Give Pets the Green Light and Charge for It
There is a time-tested real estate truth - If you have fewer prospects, you generate lower demands, leading to lower prices. Widening your prospective pool can help you add value to your property.
Why should that matter?
One of the critical trends driving demand for rent in Charlotte, NC, is the millennial wave. For this generation, self-care is a crucial part of life they can't do without. On top of that, there is demand from families moving to Charlotte NC, to consider.
If you want to add value to your property, consider opening it up to tenants with pets. Right off the bat, you grow the number of prospects you can target and potentially charge more.
To add perspective to it, more than 60% of Americans have a pet. Without allowing tenants with pets to look at your property, you'll need to remain competitive by lowering your price.
Of course, the fear for many landlords is that even if they were to allow pets in, there's damage to account for.
To make this work, you can charge a non-refundable pet deposit. If the same research is to go by, 95% of Americans who have pets feel they are part of the family. Ergo, paying extra for their pet won't be an issue.
You get to make your property more valuable by adding to its value proposition while taking care of extra expenses without going into your pocket.
2. Focus on Preventative Maintenance
One way to drive up rental value is to lower your operating costs. Running preventative maintenance is an effective way to do that.
For example, you should not get used to tenants having to replace small tasks like furnace filters, gutter cleaning, or cleaning off air conditioning compressors.
Such maintenance demands may seem negligible, and that's where many landlords go wrong. If you let these issues slide, they will catalyze more significant problems. Before you know it, you'll be breaking the bank for foundation repair or new HVAC systems.
To add to that, there are maintenance issues that tenants won't tell you about. Problems like water leaks that go unresolved over time turn into extensive water damage that costs a pretty penny to fix.
Getting ahead of such issues before they turn into greater problems will help you save on costs, which is one way to quickly earn more from your property without resorting to raising the rent.
Taking on a proactive maintenance stance also helps lift the customer experience you deliver. Tenants won't have to keep running into so many issues and find it a hassle talking to you repeatedly about it.
In turn, your tenants will enjoy staying in your property, which leads to longer retention rates and lower turnover—all of which spells good things for your property's income-generating ability.
3. Implement Alternative Incentives
Alternative incentives are standout ways to make your property more attractive to tenants, which has a desirable knock-on effect on the property value.
For example, you can design a program to recognize residents when they move into your property. As part of this program, when they hit their anniversary stay, you can offer them a choice of free housing upgrades capped at a fixed price point.
For such a tenant, they did not need to do anything extra to receive such recognition and their feature upgrade of choice. Yet, such an acknowledgment sticks with the tenant, and that makes for a good landlord-tenant relationship.
On the other hand, you get to improve your property. The additional features you offer can be for as little as $80. The more anniversaries you celebrate, the more you stoke the fire that is the emotional connection with your tenants to retain them for longer.
You also get to keep adding value to your property so you can fetch higher rates with the subsequent new tenants. It's a win-win.
Such off-the-beaten-path incentives also tend to generate positive word-of-mouth advertising, which is the best kind. Execute well, and you may just end up with a waitlist, which adds more perceived value to your property.
4. Add or Update the Laundry Space
As unglamorous as it may seem, laundry is a never-ending cycle for tenants, and anything that helps with that is a value add. If your property does not have a laundry space, you should consider adding one.
Your property will instantly be more beneficial to current and future tenants, which gives you room to earn more income from it.
If you already have a laundry space in your property, you should weigh ways to serve the tenants better. For example, adding more open space to improve circulation as tenants run loads can make things easier.
You can also evaluate the appliances you have to determine if a refresh is necessary. Swapping old washers and dryers with new, energy-efficient ones adds to your property's functionality and aesthetics.
Adding storage space in the laundry room also ups the functionality. All these touch-ups add up to delivering more utility for tenants, and that makes your property draw and retain tenants more.
Position Your Rental Property Correctly to Generate More Income
The real estate market in Charlotte, NC, is heating up, and as a landlord, you don't want to miss out on it. Unless your rental property delivers a compelling value proposition, though, the opportunity will pass you by.
Assess the tenants you want to attract and map significant renovations that resonate with them to ensure you invest in suitable value addition tactics that help you earn more.
At Bottom Line Property Management, your home is our priority. Talk to us today and leverage our 55+ years of experience to learn more about homes for rent in Charlotte NC.