Are you wondering what sort of upgrades will increase property value and grow your Philadelphia investment portfolio?
It’s something we’ve been thinking about, too. And we have some ideas.
Summary:
- Smart home technology and energy efficiency increase rents and attract tenants.
- Going green can boost property value and appeal
- Security systems are an essential upgrade in Philadelphia rentals.
- Think about flooring and forget the carpet.
- Focus on kitchen updates for aesthetics and functionality.
Let’s take a look at what we recommend. Remember: these are general strategies. Your property is unique, and we’d be happy to make some customized suggestions.
Smart Home Tech and Energy Efficiency
Integrating smart technology into your Philadelphia rental property can immediately increase your property value. Smart thermostats, LED lighting, and energy-efficient appliances not only appeal to the tech-driven tenant, but they also significantly reduce utility bills. That’s a plus for your bottom line and your tenant’s monthly budget.
We have seen studies report that renters are willing to pay higher rents for the convenience and savings these features offer.
- Consider a Wi-Fi enabled smart thermostat that allows tenants to regulate the temperature from their smartphone.
- Replace old bulbs with LED lighting, which will save on replacement costs and energy. Once you switch out all of the bulbs inside and outside of your property with LED, you may never have to change them again.
- Energy-efficient appliances like dishwashers and HVAC systems further reduce your property’s carbon footprint and operational costs. Look for appliances that are ENERGY STAR rated when you’re replacing outdated refrigerators, washers, dryers, and dishwashers.
There’s an investment required in smart home features, but you’ll find it contributes significantly to your earnings and your property value.
Go Green with Real Sustainable Solutions
Environmental consciousness no longer belongs to the political activists among us. This is quickly becoming a necessity for attracting and retaining well-qualified tenants and for giving a boost to your property value. Consider simple yet effective green initiatives such as:
- Low-flow toilets and showerheads
- Solar panels
- Energy-efficient appliances
- Green roofs
- Sustainable landscaping and irrigation systems
- Tankless water heaters
- Improved insulation
Incorporating sustainable materials in your property’s design further enhances its appeal. Think about what you can do when it’s time to make repairs and updates. Look for materials that are durable as well as eco-friendly. It could be low VOC paint that improves indoor air quality. Such initiatives not only reduce the operational impact but also significantly contribute to a healthier living space and environment, which is increasingly a priority for renters.
Upgrade Your Philadelphia Rental’s Security and Access Control
Safety is always a top priority for tenants and not only will a safe home be worth more, you’ll likely see your insurance costs drop. Think about a video doorbell. Consider those smart locks and security systems that deter criminal behavior and provide your tenants with peace of mind.
Security features increase your rental value and meet a growing tenant demand.
Hard Surface Flooring Upgrades
Aren’t you tired of cleaning the carpet in your rental home during every turnover? Doesn’t it get expensive to replace it every five years or so?
There’s a good way to avoid that hassle and expense.
Upgrade to hard surface flooring. Tear up that carpet and replace it with tile, faux hardwood, or some laminate surface that looks great and remains durable. We talked about bamboo floors. Whatever you choose, make sure it’s easy to maintain and install. Carpet is not terribly attractive to tenants. Most rental property grade carpeting stains easily and begins to look worn just months into a lease term.
Tenants prefer hard surfaces, and here’s why:
- It’s easier to maintain. Instead of scrubbing stains out of a carpet, there’s a simple wipe or mop that’s needed on a hard floor.
- The floors look cleaner.
- There are far fewer allergens and health concerns. All of that dust and dirt that catches in carpet fibers is hard to remove. If you have a tenant with pets, their hair and dander can live in carpets for years.
You won’t have to replace hard surface flooring as often as you replace carpet, so it saves you in the long term as well. Hardwood floors would be great, and so would ceramic tile. If those surfaces are out of your budget, consider a vinyl floor or some engineered wood products. There are a lot of options at all different price points.
Focus on Kitchen Features in Philadelphia Rentals
For the biggest boost to your property value, focus on the kitchen.
The kitchen is an excellent spot for attention-grabbing upgrades. You’ll find that tenants are particular about the kitchen, and they’ll be closely inspecting its functionality as well as its aesthetics.
Consider upgrading with design elements that are cost-effective but still powerful when it comes to marketing and showing your rental home. A tile backsplash, for example, will look great behind a stove or a sink. You can also install new, shiny fixtures on the sinks, cabinets, and drawers. A fresh faucet and better lighting overhead will also improve the way the room looks and feels.
Think about those appliances as well. We have talked about the value of energy-efficient washers, dryers, dishwashers, and refrigerators. If your appliances are aging or looking worn down, it’s a good reason to replace them with energy efficient models. Stainless would be great, and your prospective tenants will definitely notice them. They’re also expensive. If you can install stainless appliances, do it. Otherwise, just make sure all of your kitchen appliances match.
Pay attention to counters as well, because no one wants to move into a home with plastic laminate counters or old surfaces that are stained, chipped, and scratched. Over time, laminate countertops deteriorate and look bad. Install a solid surface material. The counters don’t have to be granite or quartz, but there are some acrylic composites and even concrete that will look better and be easier to maintain.
These are just a few ways to increase your property value with smart and strategic upgrades. Let’s talk about what will work best for you. Contact us at TCS Management.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
