A few years ago, or maybe just recently, you have decided to buy property to be rented out. It was – and is still – a good decision. Renting your property out provides you with passive income. You can better feel the effects of this passive income if you have your finances in order.
Is Rental Income Purely Passive Income?
In a sense, you had all the work done before you were able to invest in property. For those who had finished paying the property in cash, it is time to get some of your money back. However, remember that you are responsible for what happens in the property. It should continue serving as promised – as a haven with the necessary items to keep your tenants comfortable. You need to put in hard work, in terms of maintaining, renovating, and providing your tenants with appropriate furnishings and appliances. You are expected to keep your end of the bargain. So, rental income is mostly passive, but you need to work hard to ensure that your rental property is still serving its purpose.
Why Should You Renovate?
You should renovate the property because of the following reasons:
- The property is becoming a health hazard and may pose some danger to your tenants.
- The property is depreciating because of uncontrolled decay.
- The renovation will improve the value of your property.
What Are the Possible Renovations?
Some parts of the property need to be renovated the most:
Kitchen
The kitchen can feel a lot of the wear and tear in a house, especially if you are renting out to a family. There may be tenants who like to cook. So, this area may be well-used. You may also make sure that this area is adequately ventilated if it is not yet.
Add or Fix Appliances
If your rental property is furnished, make sure you fix broken appliances. If you need to replace some of them, take advantage of used appliances stores. Do make sure that your contract explicitly indicates what must be done if your tenants were the ones who damaged the appliances. For some great used appliances in the Washington DC area, check out PG Used Appliances. For the same price as new, you can get used or scratch and dent appliances that are higher quality.
Bathroom
Bathrooms are well-used, as well. They are also often the most expensive investments in the house. Make sure all the pipes are working well. Check for rusty parts.
What Else Can Be Done?
Install New Floors
If the business is doing well, you can consider adding a few floors to accommodate more tenants.
Repaint and Update
You don’t want your property looking chipped, peeled, and miserable. Make sure there is a regular repaint to freshen its look.
Add Amenities
If there are amenities that are trending in rental property, you have to make sure you have them, as well. This will attract more tenants.
You may think that renovating your rental property is counterproductive, but it is not. You need to regularly update and maintain your property to ensure that your investment does not go down the drain. Properties can get old and damaged fast if not appropriately managed.