Typical Neighborhoods Renters Love Most
Renting Out Your Property
Today’s economy is finally making a scramble toward the green. It has hit record highs throughout the year, and more are in the foreseeable future. It may not be a permanent thing—it may only be a furlough. Or the effects may be long lasting. Either way, now is a perfect time to find additional ways of protecting your assets through expansion.
As a homeowner, you have a property whose value can be anywhere from $20k to $2 million. Yet even in the smaller scenarios, there are ways to expand property value such that you can almost double it without spending too much. Additionally, there are ways to put your property to work financially—renting, as an example.
As homeowners increase in affluence, there’s every possibility of becoming a landlord. A new property is bought, and an old one rented out. This could begin as a sublet situation bringing in $500 to $1,000 every month. After a few $6k – $12k years, it becomes feasible to expand rental operations and perhaps rent the entire property.
One thing you’ve got to watch out for if you’re renting your entire property is the sublet. SubletAlert.com can help you manage your endeavor; according to the site: “…your first priority is to provide a safe and comfortable environment for your tenants. At SubletAlert.com, we monitor Airbnb daily. If we find a tenant illegally subletting one of your properties, we’ll quickly notify you by e-mail.”
The last thing you want is a tenant renting out your property underneath you! One of the biggest parts of renting is ensuring that the renters you choose are the right kind. You’ve got to screen carefully, because though providing a good living environment is key, having bad renters compromises that environment–it could even compromise you as a landlord.
You want to consider your neighborhood, as well. You’ll get more renters in an ideal neighborhood when it comes to rental properties. Let’s be honest: every neighborhood everywhere is ideal for some renter. Certainly there are those who would live in a garage for $100 a month if you let them. The real question is the kind of renters you’ll ultimately attract.
If you’re in a neighborhood near a number of taverns, fine-dining, entertainment centers, and the like, don’t be surprised if your renters are of a younger kind. If you’re around a library, an upscale arts district, or a top-tier shopping center, you’ll likely see a more metropolitan sort of renter.
When it comes to neighborhoods, a renter just doesn’t want to be in a bad one—unless they’re desperate, in which case they may not be the type of tenant you should work with.
Part of your deciding factor should be price. Be sure to put the room out there for what it’s really worth. If your neighborhood is near local amenities and moderately clean, you can expect several different kinds of renters to be interested. Provided you’re careful in your choice, you’ll likely find the perfect candidate.
Property Value Expansion
Another way of increasing the value of your property involves upgrades. By upgrading your property’s value, you can branch out into more lucrative tenants – adding luxury kitchen items or leveling up your furniture set. You can additionally save money through the sorts of upgrades you apply. There are ways to manage your living situation which allow you to circumvent traditional grid resources, meaning your only recurring costs are property taxes or an HOA.
When it comes to living situations today, a very trendy—and in many ways cost-effective—energy solution comes from “green” innovations. Solar panels, wind energy, water energy, building materials, property design—these all play a part in how energy-effective and self-sufficient your property is. Self-sufficiency is key in today’s world.
As a matter of fact, depending on where you live, you may be eligible for a green energy tax-break. Also, adding a solar energy system of 5.1 kWh will increase the value of your property by something like $15,000—depending on your state, of course. Do a little research for clarity, but it’s feasible to install such a system for around $5k.
If your property were only worth $20k, with a solar energy system for $5k, you could upgrade it to $30k, minus $5k for installation and acquisition. If you’ve got a tenant paying $1000 a month, you’re bringing in $12k, meaning if you sold your property that year you’d make $42k. Granted, these numbers are small and hypothetical—that’s intentional.
The reality is, when you’ve got a larger property, you can spend $42k just on upgrades. You might be able to rent multiple areas of the property, and you can really solidify it as an asset.
If you can cut utilities out through a tax-break eligible green upgrade, that will be very attractive to renters as well. Then you might sublet the whole property. It’s easy to see how many landlords attain their status: what was once a supplemental income solution gradually became a full-fledged career in property acquisition, management, refurbishment, and sale.