The rental market is booming these last few years, especially in major metro areas like Boston, Miami, Chicago, Portland, Seattle and Dallas, and the demand remains high. If you own rental properties, there are various ways to take advantage of this.
High End Properties Get the High End Rents
The main way to take full advantage of a healthy rental market is to upgrade your properties. Better facilities will command higher rents, and in a high-demand market, you might as well go for the higher end customers. Upgrading requires some upfront investment, but in high-demand market, you are virtually guaranteed to make your money back and then some. Do a little research in your area to find out what renters value in a unit, then get to work giving it to them.
Show Your Buildings in the Best Light
Even if your units are in good shape, you can kick it up another notch with a facelift to the façade, some new landscaping, or by sprucing up common areas. Is there an unused basement space that could be turned into a gym? Young professionals will pay a higher rent to live in a building where they can work out easily and avoid the cost of a gym membership. If there is a usable roof, consider turning it into a roof terrace, with deck chairs, plants and some play equipment for the kids in the building. A little can go a long way in moving your property to the next level.
Branch Into Gentrifying Areas
When there is high demand, adding new units is another way to take advantage of the market. Especially younger people are often interested in living in downtown areas that are close to shops, restaurants and transportation. Most major metro areas have pockets of run-down buildings that can be turned into lucrative rental units with a decent rehab. Look for properties with relatively small units that are suitable for young renters starting out.
How to Pay for It All
As a seasoned landlord, you may already have considered all these options. But getting banks to invest in your vision can be an uphill battle. Especially after the subprime mess in 2006-2007, banks have become quite timid about backing landlords to develop their properties. This need not hold you back. There are lenders who can help. Lenders, like Hard Money Lenders, with the experience and the confidence to help you maximize your profits.