Are you planning on renting your Southern California home or rental property? If so, like many homeowners or Real Estate investors you may be wondering if you can get more rental income from your property if you make some cosmetic upgrades to the property before renting it. Making cosmetic upgrades to your rental property is a smart decision to make because those upgrades will make your property more appealing to renters but before you make those upgrades there are several important questions that you should ask yourself.
What Is the Current Fair Market Value Rent?
This is the first question that you should ask before making cosmetic upgrades to your rental property because, if you upgrade the kitchen or bathrooms, you want to have confidence that you can get an additional $50 to $150 more per month in rent before you make those upgrades.
How Long Are You Going to Keep the Property For?
After analyzing the current fair market rent, and determining how much you plan on investing in the property, you should next ask yourself how long you are planning on keeping the property for after making those cosmetic upgrades. Let’s say that you are able to get an additional $100 per month in rent after making the upgrades to your rental property. That’s an additional $1,200 per year in income but, if you invest $15,000 it’s going to take you about 10 years to get the money back that you invested into your rental property and it will obviously affect the future resale value of the home as well. These are some of the questions that we help our Real Estate investor clients answer before they choose to upgrade their rental properties, and we would love to provide you with the same answers as well.
Contact the Fred Sed Group
To learn more about if you should upgrade your Southern California rental property before renting it, or to view properties for sale in Southern California, contact the Fred Sed Group by calling us at (800) 921- 9231 or connect with us online.