There is always room for improvement. This is true for everything, including rental spaces. With renting, tenant improvements made could be financially rewarding as it could also manage to improve the rental income in the process. What most landlords fail to realize is how quickly they see the return on their investment, in both the rental income itself and the quality of living for their tenants.
Improvements on rental properties can be completed by the landlord or the actual tenant and can be completely different in nature. While landlords typically make improvements in effort to attract a tenant with an updated space that’s aesthetically pleasing, renters can and often do make tenant improvements for their own comfort or personal design taste.
Landlord Improvements
Between occupants, most rental properties are given new carpet and a fresh coat of paint while they wait for tenant applications to come in. However, not every rental space needs new carpet or a fresh coat of paint. Some places could get by with a deep carpet cleaning service and wiping down the walls. If a landlord is able to save money without sacrificing quality between tenants or take advantage of tenant improvements, they should explore those options.
Additionally, landlords should ensure that kitchens and bathrooms are provided with current designs and appliances. Since kitchens and bathrooms are the biggest selling space in homes, it’s only natural to assume they would be the biggest drawing point in a rental space as well. Having a clean, neutral design with attractive focal points will appeal to a wide array of renters instead of decreasing your rental pool of applicants.
Tenant Improvements
With permission from the landlord, some renters are allowed to make tenant improvements within their rented space. Improvements can range from shelving installations to paint colors. Occasionally, some landlords allow tenants to install built in bookcases or fireplace surrounds in effort to make the rental space less generic and more upscale. Tenants should know, however, that any updates or improvements made while renting a property then belong to the landlord and cannot be deconstructed or removed upon the end of their lease.
How Tenant Improvements Improve Rental Income
By making improvements to any rental space, landlords are able to increase the rental rate. We’ve all been told that we get what we pay for and renting a space isn’t excluded. A simple change could see a reward almost immediately.
If tenant improvements are something you’re considering and you’re in the Houston area, reach out to the SMB Group, LLC for help improving your rental income.