How Alluring Design Makes an Investment Property More Profitable

Investing in a rental home or multifamily property is an exciting way to start your portfolio. Research from the IRS indicates that over 10 million people in the U.S. earn income from an investment property, but the amount of that income can vary widely depending on the location, desirability, and condition of your property. Another important fact that too many landlords overlook is the attractiveness of its design elements. Though most properties are rented unfurnished, staging an aesthetically pleasing apartment can have a huge impact on its demand.

Successfully Staging Your Property for Profit

Staging a property is all about neutrality. You want prospective tenants to immediately visualize themselves in the space as they’re taking a tour. To optimize your design scheme, you should remove all clutter, choose smaller furniture pieces that make the rooms look bigger, and opt for simple colors.

Investors should remember, though, that the best staging in the world can’t compensate for a property that needs repairs. A visitor who’s met with a leaky toilet won’t be impressed by a spacious floorplan. Before you focus on improving the design scheme, you need to ensure the HVAC system, plumbing, and electrical work are in sound condition.

Upgrading to attractive amenities can also offer a great return on investment when you’re trying to attract tenants. A kitchen renovation can boost your overall property value and yield higher rent. Luxury appliances such as a high-end range can also set your property apart from competitors and entice tenants.

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Investing in Marketing and Upkeep to Maintain Value

If you’ve upgraded appliances and invested in other improvements, you need to market these amenities to prospective tenants. There are many platforms you can choose to market an open unit, including social media, online ads, or print publications. You should assess which of these is most likely to reach your target tenant.

A better design scheme can boost a property’s value, but you still need to invest in upkeep in order to maintain its value. If you hire a property management company to overtake landlord duties, though, you won’t be directly responsible. Deciding whether to manage your own investment property can be difficult, but you should consider whether it’s worth the extra profit to screen tenants and handle maintenance complaints.

Even if you don’t directly oversee your properties, you face an array of liabilities that could result in litigation. You can minimize your vulnerability and protect your assets by forming a limited liability corporation. If you want to do so, but don’t want to pay expensive lawyer fees, you can enlist help from a formation service

Maximize the Value of Your Investment Through Design

The design scheme of your investment property is one of the most essential components of its success. Prospective tenants who visit the unit will be attracted to staging that’s open, inviting, and neutral. They’ll be even more enthused by well-maintained utilities, the addition of upgraded appliances, and a renovated kitchen. It’s important to protect yourself from the risks an investment property can contain, though. Forming an LLC is one of the most effective and affordable ways to do so.

Photo via Instagram @@bear_creek_farmhouse⁠
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Optimize your investment property’s design and maximize its value. With the right amenities and an effective marketing plan, you can reach tenants who are willing to pay for premium living.

That wraps up our blog on how alluring design makes an investment property more profitable! Be sure to follow all of our social media channels for updates from Appliance Educator!

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