There has never been a better time than now to become a landlord! Statisticians tell us that the X & Y Generations don't think the way we Boomers do. Gens X & Y don't give a whit about accumulating toys they never have time to play with. But Gens X and Y are all about play and don't want to be bogged down with a high maintenance property that requires one entire day of their two-day weekend to maintain. These are the people who might rent a Gucci bag, Porche or diamond necklace for the weekend and then move on. They are not as interested in ownership as they are in use and access. For this reason, many trend spotters are predicting that homeownership will decline and the demand for nicer rental properties will increase. These consumers have the income - they just don't want the responsibility of ownership.
For current landlords, this means it's time to upgrade your properties. If you own successive units on a street, or a multi-unit building, it's best to redo them all at one time. This might be costly upfront, but it's difficult to rent an $800 per month unit that is next door to a $500 per month unit. Updating all units at the same time will enable you to attract the right tenants fast!
All kitchens should be upgraded to current style cabinets with granite counter tops and stainless appliances. Flooring should be ceramic tile or wood.
All light fixtures and door hardware should be updated, as well as all bathroom fixtures. Remember, nothing sells like "sparkle"!
Bedrooms should offer ample closet space. Hardwood is a nice touch, but (for practical purposes), can be too noisy in a bedroom. A good quality Frieze carpet will suffice. (remember, these renters will likely be staying for a while.)
Garage space is also preferable for two reasons: 1) the obvious - nicer cars need to be garaged, and 2) with fun comes hobbies comes toys that need to be stored....somewhere.
If you are looking at becoming a landlord, keep these points in mind as you embark on your property search. You want to find properties that can be upgraded and can offer covered parking (at a minimum). Some apartment buildings are now offering separate on-site storage areas for their tenants at a separate monthly fee. All properties you consider for purchase should be easily accessible to major roads and highways, and of course shopping. The other nice, but not necessary location for rentals is close proximity to a school.
Call me today, Karen Pannell and get your investment property search started today! 270-903-2167
Text or Phone: 270-903-2167
Owensboro, Kentucky 42301