Have you Considered Big Projects that Could Increase Your Rental Amount?

Dustin Edwards • October 19, 2022

Big Projects Can Increase Your Rental Amount

Are looking to increase your rental amount but aren't sure what options you have in order to make this possible?


There are a few minor options to consider such as including more amenities or upgrading core systems of the Long Beach rental property. If you have the resources however, there are larger projects that can increase the rental amount. Property owners should still do the math to understand what the break-even point is.


Consider the following projects when looking to increase your rent.


ADU

An accessory dwelling unit (ADU) is typically a smaller independent residential unit located on the same property as the main home, usually a single family home. Many new landlords may not be aware that ADUs are an option to build, and if you have a large lot with a small home the additional dwelling can be an excellent investment.


ADUs provide a second home that can be rented out, and unlike having a
traditional duplex an ADU is usually detached from the main home therefore no walls are shared, giving tenants in both homes privacy. 


Other than having more passive income, an ADU increases your property value as many homeowners are willing to pay more for properties with ADUs because they provide more flexibility, lower monthly living expenses and ofcourse privacy. An additional bonus of ADUs in single family homes is the possibility of living in one home while you rent the other.


Adding Office Space

Many young tenants are looking for rentals that grasp the work from home concept. This can be achieved in a number of ways. A Junior ADU (JADU) can be built as a dedicated office space, or an existing room can be converted into an office by adding more light, power and network support to the room.


A JADU differs from a normal ADU mainly by size and location. A JADU is no more than 500 square feet and must be within an existing or proposed single-family home or access structure like an attached garage.


Although converting an existing room into an office  in your rental may not be as expensive as other projects mentioned, it can put your rental in front of more people. Widening the potential market for your rental home. When converting an existing room into an office, lighting is key. Both natural light from windows or skylights as well as bright conventional lights with dimmable capabilities. Other features like an abundance of power outlets and network ports should be considered.


Expanding the Living Space

Taking a 3 bedroom 1 bathroom and adding an additional bathroom will increase property value and be more appealing to more tenants. Depending on location, size, design and the age of your property an additional bathroom may require an investment of $22,000 on average. 


A 3 bedroom single family home is typically rented by couples with growing families, the addition of a second bathroom gives your tenants a sense of comfort. With many tenants working from home, bathrooms become a commodity especially if they have children. When tenants are happy, they’ll want to stay living in your property for longer.


One of the largest projects that could increase your rental amount is adding more living space. This can be achieved when adding square footage to the building, from foundation to roof. More living space such as adding a bedroom will allow a property to be rented for more. An additional benefit is if you ever decide to sell the property, the additional living space will reflect on the value of the property.

 

If you’re looking to increase your rental amount and have a big project in mind and need help getting started feel free to call us at (562) 888-0247 or feel free to fill out our free rental analysis to see what your rental could yield today.

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