It is no surprise when two houses in the same neighborhood command rent at different prices. While they are often within the same range, one landlord can ask for up to $300 more per month, depending on what upgrades they have installed in their homes. It is one of the reasons real estate experts recommend regular repairs and frequent renovations to maximize your earning potential and stay ahead of the competition. Even seemingly small upgrades can improve your ROI, attracting more tenants and allowing you to charge more for your property. So, how about a backsplash? Will it add any value to your rental home? Let us find out.聽

Factors to Consider when Choosing a Backsplash

Durability

Get the most out of your backsplash by opting for durable materials. In high-traffic areas like the kitchen, it would be best to go for materials that are highly resistant to scratches, stains, and water. After all, the last thing you want is to end up with a permanent brown blob on the wall after an accident or too many fingerprint smudges. 

Ease of Maintenance

Choose a material that is easy to clean with regular cleaning products. You will get a lot more out of your choice if you opt for something that is easy to clean and does not require special cleaning serums or regiments to maintain. After all, your renters will wind up handling most of the maintenance, and if it is too complicated, over time your backsplash will lose its luster.

Neutral Colors

Keep your backsplash aesthetic flexible by opting for neutral colors. A sharp red or bright green would easily contrast and limit your tenants’ options when they try to decorate. As a result, many interior designers recommend choosing colors that blend seamlessly with others and do not clash with the rest of the kitchen’s design.

Backsplash Height

Consider how high you want your backsplash to be. While some landlords prefer only a hint of tile that extends above the sink, others opt for ceiling-to-counter options, which inevitably require more material and are costlier in the long run. However, with the latter option, the tile acts as the focal point of the room, creating an accent wall that can enhance the aesthetics of your kitchen.

Cost of Materials and Installation vs. Potential ROI

Before embarking on any renovation, landlords need to know whether it is a worthwhile investment in the long run, and the easiest way is to assess its ROI. In other words, you have to compare the cost of materials and installation against how much income the update can yield. Here is a brief overview of that balance when considering a backsplash:

Material Costs

Stainless steel and glass backsplashes are gaining some popularity in the design game for their aesthetic appeal. However, there are to choose from since budget can be a concern for some landlords. Porcelain and ceramic are far more affordable, often costing less than $6 per square foot for the material. They are also classic options because they are easy to maintain and have durability. However, for property owners with a bit more to spare, stone like marble or granite offers a high-end upgrade without costing as much as glass or steel.

Installation Costs

Labor charges can vary based on the material you are using and who is doing the installation. If you have some background in tiling work, this could be an interesting DIY project for you. However, you are more likely to get much better results when you hire a professional, especially if you are doing large-scale tiling or incorporating complex designs.

Potential ROI

A rental kitchen is one of the easiest places to rack up ROI. Considering how much time we spend in this space cooking meals, eating with family, and hanging out with friends, it makes sense that the more attractive your kitchen is, the more you can charge for rent. A high-quality backsplash that prevents wall stains and enhances your home鈥檚 aesthetics is bound to attract more renters. 

Conclusion

We started this article with a simple question, “will a backsplash add value to your rental home?” To put it simply, yes.

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Purchasing a rental property is no small feat, and even the most seasoned real estate investors can find it challenging. There are so many factors to consider – from investment strategies and evaluating potential landlords to assessing market conditions and legal implications – that it can be hard to know where to begin. This article will provide you with valuable tips and advice to help you pick the right rental property to suit your needs.

Determine What You Can Afford

Your budget will determine how much property you can afford.

• If you do not have the cash to put down upfront, you will need to apply for a mortgage to finance your property.
• You’ll need to , such as repairs and maintenance, insurance costs, property taxes, legal fees, and marketing costs if you want to rent out your property to tenants on a month-to-month basis.
• Similar to residential properties, will come with standard expenses like the ones listed above, but you’re also likely to spend more on things like , security, and additional decor and furnishings to make your vacation rental stand out to holidaymakers.

Choose the Best Location

Enough cannot be said about choosing the right location for your rental property.

• Choosing a property that is close to amenities that the everyday person would need, such as healthcare facilities, malls, schools, parks, restaurants, etc., is essential.
• should ideally be a hotspot with lots to offer in terms of job prospects, low crime, affordable public transportation, etc.
• Do not forget to check out the for properties in the area. Note that if the property price is too high, your property taxes could go through the roof.

Register a Business

If you intend on using your property as a vacation rental, you might want to consider registering it as a business.

• If you want to take advantage of cost savings, then registering your business should save you money regarding taxes, since an LLC comes with certain tax benefits as well as legal protections and reduced paperwork.
• Residential rentals are a great way to long-term. Vacation rentals can end up earning you the same if you are able to cash in on peak seasons, weekends, and public holidays.
• As far as marketing goes, supplement the usual social media channels with some tactile, old-fashioned approaches 鈥� in the form of a free business card maker!
• Regardless of the direction you want to go in, your property will . Decide if you want to be responsible for property maintenance yourself or if you want to to do it for you.

No matter which way you look at it, owning a property gives you the power to earn income. If you are considering renting it out, then you are likely to make much more than you anticipated if you know what matters most in tenants’ or holidaymakers’ eyes. It all comes down to planning.

皇冠体育app is one of the largest and most established real estate systems, with over 8,000 agents working across the globe. Feel free to browse to find an agent in your area!

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A vacation rental can be a great way to bring in money with minimal effort. Whether you’re looking for a side hustle or preparing passive income streams for retirement, you want to plan carefully when setting up this business model. Advanced planning will pave the path to success. These resources can help you get started on the right foot.

Do Your Research Before Investing

If you want your vacation rental business to thrive, you need to plan strategically.

• Research the best places to buy vacation rentals, buy property in an in-demand area.
• Find a local real estate expert to help you get the perfect place.
• Run a title search to the house or apartment you want to buy doesn’t have any liens on it.

Prepare Your Paperwork

Preparing your documentation in advance will streamline the vacation rental setup.

• Figure out of a mortgage you’ll have to take out using an online mortgage calculator.
• Get the documents to apply for a home loan, like pay stubs and tax returns.
• Start researching property management companies that can help you take care of the property and find tenants. Secure a contract ASAP.

Make Your Rentals as Marketable as Possible

Make sure your properties stand out from the competition in a crowded marketplace.

• Spruce up the property’s exterior with simple and affordable landscaping, and flowers.
• Install extra perks vacation rentals more appealing, like a heated floor or fireplace.
• Take stellar real estate photos to make your property as possible in online advertisements.

Invest in the Tools Needed to Streamline Rental Business Operations

Your vacation rental company is a business. Equip it accordingly.

• Use to issue invoices and collect payments to your business quickly.
• small business tools like communication apps and project management software.
• what jobs you want to outsource, like bookkeeping.

A vacation rental business can be a lucrative source of passive income. However, it requires some effort to get set up. The above resources can help guide you through the process, step by step.

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Property rental can be a very lucrative business. Sometimes, it’s better to rent out your home instead of selling it. If you鈥檝e acquired a new property and you’re planning to rent out your current home, there are many things to consider.

Although renting out your home can bring good profit, it can also be complicated. If you don’t handle it well, you’ll have plenty of headaches to deal with. To avoid stressful issues when renting out your home, read on for a few tips!

Understand Your Responsibility

When you rent out your home, you’ll immediately be considered a landlord. As a landlord, you have a responsibility to the property and to your tenants. Before you accept tenancy, you must understand the obligations and weigh your decision well. You should be ready to handle many different obligations.

Renting out your property saves you from issues that come with leaving a property uninhabited, like vandalism. You also get to generate additional income and enjoy tax breaks. However, along with these benefits are the huge responsibilities that you’ll have to face.

For example, you’ll have to repair all damages to the property. Also, you’ll have to handle property maintenance throughout the tenancy contract. If you need funds for repairs before renting out your home, research options for a loan. Try your bank for a home improvement loan, or reach out to an online lender, like , if that is more convenient.

Set a Reasonable Rental Price

Having understood and accepted your obligations as a landlord, the next thing is to put your rental property online at a reasonable price. and know the market price of rental properties in your location.

An appropriate price on your rental property will attract many potential tenants. That way, you’re assured of making profit on your property sooner. Overpricing the property could leave it empty for a long period. That will translate to zero cash entering your pocket鈥� and that can be especially difficult if you are still facing your mortgage payment for the home.

Be Selective of Tenants

Screening your prospective tenants properly will help you avoid future problems in your rental business. Also, it will ensure you get the right tenants who will care for your property. After setting an appropriate rental price, expect many people to show interest.

You can start by advertising your property online and in print to reach a wider market. Also, consider posting it on social media or an online rental market. You can also put an advertisement in a newspaper. Screen interested persons and have them provide basic information such as name, salary, employer, previous address, and others.

Insurance Can Be Handy

You need to protect your property if you plan on renting it out to random strangers. You don’t know how your future tenants will handle the property. Be sure to get a policy that provides protection for you, the property owner. Property insurance comes with different benefits. One of them is that it can cover the cost of most repairs.

Additionally, it would be best if you encouraged your tenants to acquire renter鈥檚 insurance. Doing so, you’re absolved of any liability that results from any damage to the tenants’ belongings.

Some landlords face litigation because of damages to the renter鈥檚 belongings. Insisting your tenants get insurance will save both parties the hassle of litigation if damage was to occur. Renter鈥檚 insurance policies are often affordable, and most tenants don’t mind paying for one.

Get Proper Permits and Documents

Your property rental is considered a business because you profit from it. Since every business must get specific permits and documents to operate, your business will need the same. Do your research or inquire with your local registry on how to go about it.

Laws on property rental differ from state to state. There’s no one-size-fits-all advice regarding the laws of renting. Consider talking to a lawyer or your local government authority for the right information.

It’s also important to prepare a rental agreement that documents the agreed terms between you and the tenant.  Your tenant should have a copy of this document, while you also keep a copy. That way, both parties can always refer to the agreed terms. Having your lawyer prepare this document will give you a more robust agreement.

Hire Professionals

If you have multiple units for rent, consider hiring some professionals to help you along the way.

You might want to start with a lawyer. Your lawyer will be responsible for all the legal aspects of the rental business. The next person you’ll have to hire is a project manager. He or she will oversee the entire operation of your business.

Accountants can also be a good addition to your team. Handling the finances of a business can be a tedious job. It鈥檚 a good idea to have a trustworthy professional do it for you. You’ll have more time to focus more on other aspects of the business.

Are you ok with having to DIY all the messy maintenance jobs? Consider hiring someone who can make sure your properties are well taken care of. The maintenance expert will not only clean your properties, but also ensure everything in it is functional. That way, your tenants get to enjoy a great living experience.

In Conclusion

Renting out your property isn’t the easiest of jobs. You need to put a lot of things in place to avoid terrible mistakes. Also, you need to ensure the protection of your property, while providing the best home for your tenants. Before you start marketing your new business, it’s important to address considerations discussed above. Doing this will help prepare you for a smooth running of your rental business.

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Getting started with owning rental properties needs a lot of considerations before diving in. Possessing these real estate investments is one of the best choices any investor can make. Thus, rental property is among the top investment options in the real estate industry.聽

Along with deferred income and tax benefits, investing with a rental property can produce good returns all year round and is not affected by the market’s changes. However, most people are not sure how to get started when it comes to budgeting and managing a rental.

How To Uncover Future Potential Expenses:聽

• Ask local real estate managers: Many property managers would happily provide you with this kind of knowledge. They will help you not just because it鈥檚 their expertise, but also because of the likelihood that you might use them as your real estate managers one day. 

These people usually do have excellent knowledge of real estate properties. Thus, they must also provide information, especially for future expenses, that can help you out with your financial budget. You can also use the aid of a to estimate the proceeds of your home or rental property further.聽

• Contact other investors: One way to uncover future fees is to ask other real estate investors who owned rental properties within the area. You can learn some insights from their experiences that might help while you鈥檙e still getting started.聽

These people can easily be found in local real estate groups. You can also ask for references from your real estate agent or look through public records or browse social media.

This investment will provide several expenditures and fees. Investors need to become aware of the to calculate an accurate financial budget for a rental property.聽

Property Taxes

As most people say, death and taxes are the only sure things in life. One cost associated with rental property investment is the property tax. Usually, this depends on the property鈥檚 jurisdiction, which is assessed by the county in which the property is located.

Moreover, property tax can be tax-deductible on your tax return. Investors seeking to determine property tax costs can contact their county assessor to receive the accurate sum of the latest property taxes.聽

Insurance

The insurance is another cost related to rental property investments. Although this expense varies depending on the region, this insurance cost is usually included in the mortgage payment. But if not, investors should make sure to keep enough funds to cover the monthly costs of insurance.聽

Insurance usually is paid in one lump payment a year. However, a lot of providers do allow monthly payments, often requiring additional fees.聽

Moreover, you have to pay a 鈥淗omeowner鈥檚 Association Fee鈥� if your property is situated within a Homeowner鈥檚 Association. This scenario is most likely prevalent with moderately priced neighborhoods or condominiums.聽

Utilities

Often, utilities are shouldered by tenants. However, utilities, such as water and sewer, are generally provided by the proprietor. This is not valid in all cases. Make sure to check with the competition and environment in your area and figure out how you can offset this fee to your tenant.聽

Electricity, on the other hand, is almost always paid by tenants. However, there are still multifamily establishments who also pay part of the property, such as storage areas and lights in parking lots.聽

Gas, other heat resources and garbage are also paid either by the landlord or tenants. This depends on the arrangement, as well as the area where the property is located and other circumstances. Thus, you should take this into account to come up with precise calculations and prevent possible losses.聽

Property Management

Investors who wish to expedite their investment in rental property should consider incorporating a property management firm.聽

The role of these firms is to settle rental rates, delegate maintenance, collect rent, advertise and market, as well as look for perfect tenants. The advantages of having a property manager include shorter vacancy periods, fewer legal issues and improved processes. Thus, makes it much easier for those who just started in the rental property industry.聽

While these may add costs that can affect your budget, the management to investors, especially to newbies, is undoubtedly worth it. It can help those who are hoping to take their business to the next level.

In summary, starting a rental property requires you to be financially wise. Rental property costs will vary from area to area and property to property. From taxes, insurance, utilities to property management, you should calculate your financial budget and other possible outcomes. As investors, even though these potential expenses might cost you a lot, especially when tax season arrives, the benefits are likely bigger than your expenditures.

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Being a rental property owner is something many strive for in their lives. This is because much of the time, owning a rental home is a great investment. The responsibility that goes along with it is great as well, though. Owning multiple rental properties only ups the stakes. As with anything else, there are a lot of disadvantages as well as advantages. Let’s go through some.

The advantages of owning multiple rental properties

Having multiple rental properties has plenty of upsides. Looking at the positive side of things first will hopefully make you see that the flaws aren’t that bad.

It’s always good to have a passive income

If you own multiple rental properties and are able to keep them occupied, not only will you have a steady and secure amount in your bank account, but you’ll also have a passive income. This is certainly always welcome.

A possible business opportunity

A great thing about owning multiple rental properties is that you don’t have to sell only to tenants who are looking for housing. If your property is in a desirable location, you could always rent it out to business owners. This could be a great investment opportunity.

Living out your dreams

If you’re someone who’s always wanted to buy a fixer-upper, this is a great way to do it. Provided that you already own one or more rental properties and that you’re financially stable, this could be a chance to play around a bit and mix business and pleasure in the best way possible.

The disadvantages of owning multiple rental properties

Of course, if you’re seriously thinking about owning multiple rental properties, you have to look at both sides in order to have an objective overview and figure out what is best for you.

Always having something to tend to

Although when you’re a property owner anyway, having rental properties is even more challenging than that. Having tenants in one rental property is hard work. Having more rental properties definitely asks for a ton of energy and focus. Like it or not, being a landlord takes a lot of hard work and dedication due to you being primarily responsible for any damage or issue that occurs in the home.

Lacking experience in some fields

As you may not be doing this as a your main profession, there’s a lot you may not be familiar with. This could cause some problems. If you’re, let’s say, buying a condo but have previously only owned houses, you’re in for a surprise. This is completely natural. Something you can do to decrease the number of inevitable mistakes is to have someone experienced to consult.

Misbehaving tenants

Although you’ll make sure that your contract is well thought out, there’s a chance that your tenants might not turn out to be as great as they seemed at first. This can happen to anybody and it is solvable, but it’s a dreadful experience nonetheless. Just make sure to have a real estate attorney by your side if anything arises.

Destruction of property

As the worst outcome of them all, there’s a chance that your property could get seriously damaged before you’ve gotten the chance to see what’s happening and stop it. The best thing to do here is not to stress too much about it. If your contract is done in the right way, your insurance will cover anything that might’ve gone wrong.

Create a bulletproof contract

Although you’ll need to be actively involved in this process no matter how well written your contract is, having a solid, bulletproof deal will be of great help. Owning multiple rental properties is something that will take up enough energy as is, having a person to overlook everything is the way to lessen the burden on your shoulders. Contacting a lawyer that you trust is the best way to do this.

Now that you’ve seen the pros and cons of owning multiple properties, you can make a clear decision as to why this is something you may have a passion for or if you would rather not the risk.

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Most investors are interested in improving the value of their asset over time. Investors typically seek both capital growth 鈥� I.e. turning a profit when they want to sell 鈥� but also maximum rental yield and minimum vacancy whilst holding the asset. The best way to do this is to create maximum appeal for prospective renters in the area.

But this can be tough to do, especially in suburbs or cities that are flat, facing oversupply (too much choice for renters, which pushes rent rates down), or perhaps aren鈥檛 offering the property type that rental seekers are looking for in that area.

Many different home improvements can be made to the property to increase its appeal and functionality to renters. Today the team at Property Correspondent offer up some innovative ideas to make your property stand out from the pack in pursuit of the best quality tenants looking in your area.

Houses 鈥� Install a New Garage Door

This is a big one. Older garages often appear tired to renters and older garage doors often lack the security level needed to protect the tenants鈥� vehicles being stored. Garages and sheds should be in good condition to allow the home to look maintained. The garage door is one of the main features on buildings that influence the aesthetics of the home and the good news is there are many tools available to design your own shed or garage.

Outdated garage doors can become an eyesore on the property and detract from the home鈥檚 curb appeal. Older properties tend to have an asbestos-ridden, poorly secured garage in an inconvenient location on the property, so introducing a durable, sleek and modern garage at the right spot on the property will protect vehicles and create additional secure storage space, year-round. This is appealing for tenants, especially in areas with high volumes of young-families as the extra storage space is often valued by these tenant types.

Houses 鈥� Add a New Roof

In similar ways to how garages can add street appeal, a new roof offers both practical and aesthetic appeal to renters. The roof is one of the main investments in residential buildings and will, of course, protect the home from water damage throughout the year. Installing a new roof can not only increase the asset鈥檚 value immediately, but modern roofing materials offer protection for decades.

Coupling a new roof with solar panel fit-out can also be attractive to renters and help to make your property stand out from the crowd, thanks to the appeal for renters to have cheaper electricity bills whilst they occupy the property. Metal roofs offer added energy efficiency and can typically last an average of 50+ years before needing replacing. Not only this but as an investor, you could be adding substantial equity by adding a roof. It is not uncommon for houses with new roofs to see their value increase by 15%+.

Houses / Townhouses / Villas 鈥� Add a Sandpit in the Backyard

If your investment property is in a suburb with a high concentration of young families and families with children under say 10, consider adding a simple sandpit to the back yard. This simple addition can really make the property stand out and appeal to renters. For example, when a couple with a 5-year-old is considering two properties for rental, both may offer near-identical attributes (e.g. same bedrooms size, yard size, air conditioning etc.), however, a sandpit can be a real differentiator to encourage young families to rent your property.

Adding a sandpit can be simple and as cost-efficient as only a few hundred dollars if done as a DIY job that can be done in an afternoon.

All Property Types 鈥� Paint the Home

Adding a new coat of paint to the interior and/or exterior of the property (if it is a house), can enhance the style of the property and allow it to appear fresher to prospective tenants. Painting doesn’t need to cost an arm and a leg, since strata-titled properties often do not require strata approval for internal walls (though check-in with your strata manager just to be sure).

You can even DIY this task if the property is vacant, and paint type/color selection is becoming easier than ever for amateurs. Use that allow the home to blend in well with the rest of the street/suburb and add a complementary color to the trim and shutters. Another way to make your property stand out is to consider pressure washing the siding to remove dirt and grime that may have accumulated throughout the previous/departing tenant鈥檚 stay. This will brighten up the look of the home and encourage renter interest.

Using bold colors internally can make the property less appealing to renters as these may not relate to their own personal tastes. Neutral colors that are within the same color palette will blend in well with one another and will give the appearance of a professionally designed home to renters

All Property Types 鈥� Renovate the Kitchen

This one appears obvious and probably should be higher up on this list, since the style and condition of the kitchen significantly influences both the value and the rental appeal of the property. As one of the top home improvements to perform, it鈥檚 important to plan to renovate or replace kitchens appropriate for the suburb and your core target market. Investors are at risk of overcapitalising on kitchens and these rooms can quickly become money pits.

Some cabinets may simply require painting and not replacing, so a fresh coat of paint can give them a cost-efficient facelift. New countertops and a modern backsplash can create an updated environment that has a high level of appeal.

Energy-efficient appliances can also help in marketing to renters, and stainless steel adds both design and durability benefits to a kitchen. Switching out the light switches with a modern metallic cover plate can match the appliances and add further appeal. Depending on the property type and target market, an island bench can create a wow-factor for renters that can elevate your property in their consideration list. These also have the dual marketing benefit of providing extra storage with cabinets or drawers that are used underneath

All Property Types 颅颅颅颅鈥� Add New Furnitures

These days, renters give priority to saving the earth more than before, as well as the decoration. You could get potential renters by making use of it. For a fully furnished property, make sure that all the furniture is functional and look new. Planthoues is still popular for home/office decor, an item of wood furniture from will get along and blend with the plants. This gives the property a relaxing and refreshing vibe.聽

All Property Types 鈥� Install New Flooring

Finally, consider a simple upgrade that can distinguish your rental property from all others. The condition of your floors can determine how much you attract potential renters (and indeed, down the track, buyers should you sell). Hardwood floors are in demand with homes and these increase the style of the interior setting.

Renters often cringe at wall-to-wall carpeting, which wears down easily in areas of traffic and can trap allergens as they set. Good flooring appeal can add 1.5%+ to your property鈥檚 overall value, as well as make it more competitive in the rental market.

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