It may seem like rents are as high as they’re going to go.
How can you possibly earn more than you’re earning now on your Los Angeles investment property?
You might be surprised. When you can increase the value of what you’re providing, you can also increase the price that you’re charging for tenants to access that value.
Smart investors know that they earn more with their properties when they keep those rental homes in excellent condition. Good tenant selection and high tenant retention also helps you earn more with your property.
Once you’ve exhausted all of the expected ways to generate value from your Los Angeles investment property, what’s next?
Bell Properties has some ideas, and we’re excited to share them with you. Today, we’re helping you to unlock some unexpected value from your investment properties. Here are five innovative strategies that will help you earn more and/or spend less, creating a more valuable investment property.
Not all of these will be for everyone. Consult your investment goals. Determine where you’re going and why. Then, we’ll figure out how to maximize what you earn.
These general tips, however, can help almost anyone.
1. Could Your Curb Appeal be Better?
For Southern California rental property owners looking to maximize the value of their investment, creating some extra curb appeal is a strategic move that can lead to higher rental rates, quicker leases, and increased tenant satisfaction. Here are some practical and effective ways to enhance your property’s curb appeal and raise its rental value.
Landscaping
A well-manicured lawn, trimmed hedges, and healthy flower beds can transform the look of your property. Consider hiring a professional landscaping service to maintain your outdoor space regularly. Adding potted plants to the entrance or balcony areas can also make the space more inviting. Greenery creates a positive emotional response from prospective tenants.
Exterior Painting and Repairs
A fresh coat of paint can do wonders for your property's exterior. Choose colors that are welcoming and neutral. Pay attention to details such as the trim, shutters, and front door. These elements should be in good repair and freshly painted if necessary. Small repairs, such as fixing broken steps, replacing outdated light fixtures, or mending fences, can also significantly enhance the overall appearance.
Lighting
Good exterior lighting enhances safety and makes the property more attractive. Consider installing landscape lighting along pathways or accent lights to highlight architectural features or trees. A well-lit property is more appealing and can deter potential break-ins, adding to the sense of security for prospective tenants.
Power Washing
Over time, sidewalks, driveways, and the exterior of buildings can accumulate dirt and grime. Hiring a power washing service to clean these areas can significantly improve the property's appearance at a relatively low cost. This simple step can make the property look well-maintained and more appealing.
2. Are You Allowing Pets?
Landlords and investors are always surprised when we explain what a difference pets make.
If your rental property is not already pet-friendly, you’ll find you can earn several hundreds of dollars more each year just in pet fees and pet rent. That doesn’t even quantify what you save in vacancy and turnover.
Consider welcoming in the dogs and cats who want to live with their human family members.
Pet-friendly rental properties will typically earn more than properties that do not allow pets. The reason comes down to numbers. A large majority of the tenant pool in Los Angeles has at least one pet. If you’re not going to allow pets, you’re eliminating a significant pool of tenants from potentially renting your home. Pet owners won’t even consider a rental property that doesn’t allow pets. Why would they? If you have a pet yourself, you likely cannot imagine moving into a home without them.
But, wait - there’s more! You’ll also avoid turnover when you have pets in place. Tenants will be more likely to renew their lease agreement with you. They know it’s not easy to find a pet-friendly rental home, and they won’t be eager to pay another pet fee to their new landlord.
This is about increasing value, and pets increase value when it comes to what you earn. If you’re worried about damage and risk, make sure you have a strong pet policy in place. Do some pet screening. Conduct inspections. A Los Angeles property management partner can help you with that.
3. Increase Earnings and Value with Smart Home Technology
There’s been a steady demand growing among tenants for smart home technology. When you can provide that in your rental property, you’ll increase value as well as rents. Here’s what your tenants are willing to pay more for:
Smart Locks
Smart locks eliminate the need for physical keys, which can easily be lost or copied. Digital keys are preferred, and they’re better for you, too, as the property owner. Tenants can let themselves in and out of the house with a code or via an app. You can more easily change that code between tenants or when you need to allow vendors to enter the home.
Video Doorbells
Smart doorbells, which often include cameras, allow tenants to see who is at the door, even when they’re not home. Video doorbells have become increasingly popular, not only because it’s more secure and keeps tenants safer, but also because it’s useful in tracking when packages are delivered. Tenants will know when their packages arrive.
Smart Thermostats
In addition to paying more for rental homes with smart home technology, well-qualified tenants today are also looking for energy-efficient homes. Smart thermostats are such a good choice when you’re deciding what type of smart home tech to invest in. These thermostats can learn tenants' preferences after a few strategic settings, eventually adjusting heating and cooling to optimize comfort and efficiency.
Energy-Efficient Lighting
Smart lighting is another great way to incorporate some advanced technology into your rental home. This type of lighting can be scheduled or triggered by motion sensors, ensuring lights aren’t left on unnecessarily. This not only helps in reducing energy use but also deters burglars by creating the impression that someone is always home. Lighting is increasingly important to tenants, and you’ll want to make sure both interior and exterior lights are efficient, plentiful, and unlikely to increase energy costs.
4. Increasing Your Marketing Game
Here’s a strategy that’s easy to overlook, especially when you’re busy trying to decide what your property needs in order to be more valuable. Maybe you’ve already made all of the improvements and upgrades. Do prospective tenants know about them?
Don’t forget the importance of marketing your property well, so that prospective tenants understand the value before they even move in. Celebrate your successes and show potential residents why your property is better for them than any others on the market.
You can do this with excellent and professional-grade photography, detailed descriptions that really tell a story and capture the essence of your rental home, and by leveraging online platforms for maximum exposure. These things can capture the interest of potential renters in new ways. Your listing is competing with a lot of other listings. There’s a lot of value in smart marketing that sets it apart.
Be sure to highlight any recent upgrades and amenities that make your property special and more desirable. Share these listings on social media so you can engage in dialogue with prospective tenants. Tossing your listing on sites like Zillow and Zumper and HotPads is only going to take you so far. When you dig into a social media presence, you can have real-time conversations with interested tenants to expand upon the value of your rental.
5. Professional Los Angeles Property Management
We would like to think that you are already working with a professional property management company to lease, manage, and maintain your rental property. If you’re not, you’re missing out on a huge opportunity to increase your value and provide more value to your tenants.
Smart investors will tell you that they earn more by using the qualified, skilled, and experienced resources of their Los Angeles property manager. Bell Properties has the knowledge and the expertise - as well as the technology and the systems - that can help you have a more profitable investment experience. This could be your secret weapon to higher earnings.
Increasing the value of your rental property often requires a mix of aesthetic improvements, modern amenities, maintenance, and good marketing. Keep your perfect tenant in mind: what would they be willing to pay more for?
It’s also a good idea to stay current with trending demands. By proactively making these improvements, not only do you provide a better living experience for your tenants, but you also secure a profitable, sustainable future for your rental business.
There are a lot of ways to increase what you earn and how well you do. We’d be happy to talk you through some of the specific options that will work well for you, so don’t hesitate to get in touch. Contact us at Bell Properties.
