If you own rental units, whether it is a couple in a small building or a large apartment building, there are important reasons why you should consider upgrading. The advantages include:
1. Higher Rents
This is the most obvious advantage gain you get from upgrading. Better and more attractive units command higher rents. Especially in major metro areas that have high demand, you are seriously limiting your income, if your rental units are in poor shape. Even if the price goes up, there will be people ready to rent, but you have to make it worth their while. The money spent on upgrading will turn out to be money well spent.
2. Long-term Savings
If you don’t upgrade regularly, you will eventually end up with units that are hopelessly out of date and that will need major work to be rentable. By upgrading more regularly, you will actually save money in the long run, because you avoid having to shell out major sums and lose rental time for gut renovations down the road. You also avoid losing money by having to lower your rents over time to suit the state of your apartments. Your upgrade should include necessary improvements to the building, like getting bricks pointed or the heating system brought up to date.
3. Better Renters
With higher rents, you also gain better renters. Your renters will be more likely to take pride in their homes, pay their rent on time, and stay on for longer periods. If your building is sub-par, you are more likely to get the desperate people moving into your units. With better renters, you not only make more money, but also save hassles and management time. Your building will run better and more smoothly, which is a win for you.
4. Faster Turnover
When potential renters see run-down units and an unattractive building with sub-par amenities, they are more likely to move on to the next building. This means that your units will sit empty for longer periods between renters. That is lost income for you. You want to have units that rent as fast as you can get them cleaned up after the previous occupant. Making your units attractive and up-to-date will help make that happen.
5. Higher Occupancy Rates
All these advantages will translate into higher and more stable occupancy rates, and at better rents. This means that your income flows will see a lasting improvement, which makes an upgrade well worth the money you will spend. With the right financing, you can complete the work quickly and be on your way to laugh all the way to the bank.
So don’t wait. Hard Money Lenders can help with the financing of an upgrade to your building, and get you on your way to maximizing your income from your rental units.