Blog Post

How to Increase Your Monthly Rental Amount and Your Property Value

Dustin Edwards • Aug 07, 2020

Explore Two Options to Improve Your Asset and Increase Your Income

Increase Rental Amount and Property Value

As an owner of a rental property in Long Beach, besides providing great housing for your tenants, a core objective should be to maximize the value of the asset. We covered rental property upgrades in previous updates. Today we wanted to share two key strategies that could allow you to increase your property value AND increase your rental income.



Consider the following strategies to increase your asset value today:

 

  • Adding Square footage to your property
  • Changing the configuration with your addition

 

Increasing Your Property Value with Each Square Foot

As a general rule when you add square footage you are adding value. Adding square footage for a large value increase runs contrary to most renovation shows where they show a transformation of a kitchen and fresh paint and suddenly the property is worth $100,000 more than the purchase price. As a note in those shows the property is usually purchased at a substantial discount from the market price as a result of the condition of the property.



Locally in Long Beach and Lakewood an average property could sell at $458 per sq ft. While that number can vary, even within Long Beach neighborhoods (or by cities, considering in West LA or the Southbay it can be upwards of $1,000 per sq ft) it is a good value to know when determining how you can add value to your property. To add square footage to a property a rough rule of thumb to use is $300 per sq ft for construction costs. This means that should you consider a renovation that adds 300 square ft you could be increasing your property value by $137,400! Even when taking construction costs into consideration this means effectively you have a net increase in value of $47,400.



A Change in Configuration Can Increase Your Rental Amount

Homes in Long Beach and Lakewood come in a variety of configurations. Consider the common property orientations:



 

  • 2 bedrooms, 1 bathroom 
  • 3 bedrooms, 1 bathrooms
  • 3 bedrooms, 2 bathrooms 



In general the 3 bedroom, 2 bathroom property is the most desirable as it allows for the easiest use for a larger array of prospective tenants (i.e. roommates, families, etc.). As an owner of a rental property in Long Beach, you might be thinking what is the difference in rent between these configurations? While configuration of bedrooms and bathrooms are not the only contributing factors to the monthly rental income, let’s explore a few rental listings in Long Beach that were on Zillow in the 90815 zip code.

Available Rentals in Long Beach

When evaluating a 3 bedroom 1 bathroom property vs. a 2 bedroom 1 bathroom property that are close in square footage the difference is $400 a month or nearly 15%.  Each year that means that the additional bedroom can add nearly $5,000 a month in annual rental income.  With the orientation of many properties in Long Beach the addition of a bedroom can be a manageable addition to your rental.



What if you had an additional bathroom for your Long Beach Rental?


Looking at the same zip code in Long Beach (90815) there is a 3 bedroom, 2 bathroom home available for rent for $3,250.  Over a 2 bedroom, 1 bathroom home this would provide for $6,600 more in annual gross rental income and in this case $1,800 in additional annual gross income over a 3 bedroom, 1 bathroom rental home in Long Beach.  




Individual Long Beach Rental Listing

We understand that undertaking the addition of a bedroom, bathroom or even a bedroom and a bathroom isn’t easy.  We also understand that when you take this approach you will be without rental income during construction, but that is often the cost of investment to have a stronger long term gain.  When you want to understand if expanding your rental property is best we invite  you to fill out our Free Rental Analysis or call us today (562) 888-0247 and we will be happy to share more information (we can even perform a preliminary property analysis to help you see how your value would increase).



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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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