The answer to this question can depend on a number of
factors. However some simple planning
will help guide you to the right conclusion. The state of your home is what you must first assess. If your property is outdated,
a little rundown or could use general touch ups then you should look into this
situation further.
Who is your target audience?
Are you renting to working professionals, students or retirees? These are a few different demographics you
may be targeting and they can vastly change the way you prepare the property to
be rented. For example, students tend to
look for cheaper housing not caring about an updated kitchen, fully loaded
appliances or other similar features. If
you do not want to put the time or money into fixing up your property and you
are in an area that tends to be student friendly maybe this is the route you
go.
San Francisco has seen a larger demand for updated and stylish residences due to the influx of tech companies and other lucrative jobs brought to the city in recent years. If you have the means to update your property this can be a great way to maximize profits from your rental. Stories have been floating around of the long lines of prospective tenants rounded up during open houses where a “Googler” presents the landlord with a check of six month’s rent at $100 over per month then was asked.
So if you fix up your rental will this happen to you? No, not necessarily. But there are still many benefits of
remodeling. Being able to ask for the market
value of your property is a must, especially considering San Francisco’s rent
control laws. Unless your property was
built post June of 1979 this is something you should be worried about. You do not want to be stuck housing an
underpaying tenant with nothing you can do about it.
Take the time to assess your situation. Way the cost-benefit of updating your
property and do a little math. If you
think you can add a few hundred per month to the collected rental payments by
updating, well that is $12,000 extra in rent at $200 a month for five
years. So guess what? You put $10,000 into your property and made a
$2000 profit excluding other hidden costs such as maintenance. Not to mention your property value is higher
in case you decide to sell. Something
that may seem unnecessary or like a burden may actually turn out to be a smart
investment. So stop being cheap and give
it a thought, you may just end up being a savvy investor.
Sean J. Rogan
Property Manager
“Our legacy ensures quality”
Srogan@hsmsf.com
www.HSMsf.com
office:415.431.7655 ext. 106
fax: 415.431.2606
