How to Boost Detroit Rental Property ROI

Upgrading and improving your property is always an attractive idea, but what if you don’t have the funds to do every upgrade you want? Selecting the best improvements for your investment properties is a smart move because you can reduce rehab costs while targeting critical things that deliver a boost to ROI. Here are a few upgrades to consider!

Home Automation

The best property management company Detroit offers can tell you that one important upgrade that tenants appreciate is home automation. There are inexpensive smart home automation features property owners can add to a property that can help attract long-term renters. 

Some options are:

• Google or Alexa Home features
• Motion sensors and floodlights
• Smart locks
• Security cameras
• Smart doorbell

While it’s important not to “over” automate a home, these technology updates are low-cost with the potential to improve your returns!

Hardware Replacements

You can update the look and feel of the property by simply switching out the hardware. Many investors are surprised at how much a property’s appearance and appeal improve by just changing door hinges and handles—without needing a full kitchen or bathroom remodel. 

Property managers can recommend good options, including:

• Replace outdated kitchen cabinet door hinges and pulls that are outdated. Depending on the property and your budget, choose between ornate knobs that make a statement or select a timeless, sleek look.
• Redo the bathroom with new handles that add character to older cabinetry.
• Consider replacing the doorknobs and hinges throughout the home to make things look new and polished.

This small upgrade might not seem like much, but this budget-friendly “rehab” can make a significant difference when showing properties and trying to attract new renters. 

Help Renters Chill With a New Fridge

A new refrigerator and other appliances might be worth the cost of the update for some investors. The kitchen is one of the most used rooms in the house. An updated refrigerator, oven, or built-in microwave can impress potential renters or encourage current residents to renew their leases. 

Choosing new appliances can be another way to avoid a most costly kitchen remodel that might not be necessary to boost returns. Plus, energy-efficient appliances help renters save money—a key feature that can help them choose your rental unit over a similar property elsewhere. 

Create a Home Office Option

With many people turning to remote work opportunities, it’s a sweet selling spot to offer a home office option for potential tenants. 

You don’t necessarily have to do anything significant to the property to create a home office. However, if you have a three-bedroom rental home or an underutilized nook in the property, you can stage those spots and photograph them as potential office spaces, then mention that in the property’s listing.

Another way to improve ROI for rental properties is to consider your tenant’s needs and improve retention. Doing so will help encourage them to stay for the long term. In addition, when renters renew their leases, rental property owners eliminate marketing costs and generate more revenue!

Get To Know Your Tenants

Find out what makes your tenants click and make sure they understand they’re more than “just” a rent check. When residents feel valued and can build a positive relationship with a property owner, fewer issues come up during a tenancy. 

Offer a Resident Benefit Package

Detroit property managers can tell you that offering a resident benefit package can benefit both you and your renters. Some of the offerings you can provide in these packages include:

• An online payment system
• A secure resident portal
• Credit reporting service
• 24/7 maintenance
• Late payment waivers
• No upfront move-in or lease preparation fees
• A moving concierge program
• A renters insurance program

Offering this perk can set you apart from other property owners in the area while helping you attract and retain quality renters! 

Allow Pets

With so many people in the U.S. who love their pets, it makes sense to allow renters to have pets in a rental home. Of course, you’ll want to create a pet addendum that outlines the expectations and rules for having a pet in the home. However, many seasoned real estate investors understand that offering pet-friendly properties is an excellent way to boost ROI!

Make Rental Collection Seamless

Tenants paying rent is how you property owners generate consistent monthly income. Making this process as simple as possible is an effective way to help renters pay on time every month and never miss a rental payment. 

Since many people may prefer to make online payments, set up a secure portal for residents to pay rent.

Generating ROI means also involves ensuring that leases are renewed regularly. With rental units occupied with renters that stay for more than one lease term, investors reduce the costs required for marketing vacant properties and conducting the make-ready process before new tenants can move in. Renewing a lease is also an excellent time to raise the monthly rent amount (within reason), as most tenants expect a rate increase at renewal. 

More monthly income and reduced costs lead to better ROIs!

So how can owners improve renewal rates? Property management companies know the value of getting a head start with early lease renewals. Set up a reminder approximately 30 days before the lease is set to expire to discuss re-signing the lease with your renters. If you’re proactive about lease signing, you may have a better response with your tenants before they start thinking about moving at the end of the term. 

Along with a rate increase, it can help encourage renters to renew when offering some incentives. Whether it’s a gift card or a discount on the first month’s rent for the new lease, or adding an air filter delivery service at no additional costs, sometimes small perks can help renters recommit to a new lease term.