Seeking comments on possible improvements for this property.

[Chris B.]

I'd appreciate the BP group's feedback on what I can do to increase monthly rent value or at least increase applicant interest in this SFH LTR property. Current tenant's lease ends at the end of June and I'll need to clean this one up before ready for re-rent. It is located on the outskirts of Tucson. Rents are in the $2k range plus or minus a few hundred and there are outliers. Having looked over Zillow for a while now, trends I'm seeing in this area that a $100 or $200 increase in rent can reduce Zillow applicant "contacts" drastically. For example, similar homes listed for $2200 might have 5 contacts after 10 days while a price of $2095 might have 12 contacts and a price of $1995 might have 40 contacts in the same period. Like all of us, I'm seeking tenants who will pay on time, respect the property, and hopefully stay for a long time. Last round, I had difficulty finding quality tenants for this unit. The HOA has let us down a bit with regard to too many cars on the streets of which a few that looked abandoned. I can work with them on this issue. That's out of scope for the moment as I'm looking for things I can personally do. I'm considering offering it at under the $2k threshold to get me more applicant options but naturally want to maximize the potential. Why not ask the community here for advice? I need fresh sets of eyes on this.

Before we get going, this round I'll hire a professional photographer to help me get better pictures.  I'll also likely be replacing the carpet on the stairs and second floor because its time.  I'm going to stick with carpet for the moment due to budget buy vinyl is not out of scope in the future.  Third, the back yard is completely gravel with no patio and the back yard is West facing. (bottom right picture)  It gets HOT back there in the evenings.  I realize a patio will make the property more appealing but I don't see the cost / benefit ratio paying off in this location.  I've started to consider a cement slab and shade sails, but those get torched within a few years here.  The front yard which is east facing does have a nice area that is covered and past tenants have set up chairs to relax here.  Maybe I can change things up inside.  The kitchen is somewhat small.  I don't think I can make it larger without significant expense. There is plenty of storage throughout the home.  Any remodeling or other tips are appreciated.  I'm handy and can do many modifications myself.  Key is for any expense to cover itself through increased value/rent.  Thanks!

[Julie Hartman]

@Chris B. The house looks nice at first glance and it sounds like you have done your homework on pricing. Keeping rates just below market usually nets results. I think you are spot on with having better photos taken. The ones you have now are too dark. You may even consider some basic staging to juice things up. Replacing the carpet is probably a good idea for now but LVP will wear better over time. It also looks like you have two different types of flooring in the LR/kitchen area which looks strange. It may not be in the budget now but in the future, you may want to consider doing one cohesive floor and eliminate that bulky transition piece. I don't know what other homes in the area have for backyard amenities but it could be that if you only have rocks in the backyard, people with kids may not find that appealing. I get that it gets hot back but a slab where people could sit in the not-so-hot months of the year would probably be nice. Maybe even some desert friendly plants/cactus to give it visual appeal - things that don't require maintenance perhaps? Do you allow pets? If not, that could be why you aren't getting the volume you are looking for. Great photos and an informative write-up will go a long way. Good luck!

[Greg M.]

More applicants does not necessarily equal better applicants. You also didn't mention the timeframe to rent. Is there a difference in time on market at each price point and if so, does the higher rent offset the longer vacancy?

I think you are making a mistake by replacing the carpet. I understand vinyl is more expensive, but why waste money on carpet that isn't going to last long, needs to be cleaned in between tenants, and you will replace eventually? You're wasting money. Bite the bullet and figure out a way to pay for the vinyl. Consider getting it from Home Depot or Lowes where they frequently let you pay for purchases over a year. 

I don't know the area, so it's hard to say whether your place should be at the lower or higher end of the rental rates. However, black appliances don't say high end. If aiming for high end, I'd swap them for stainless steel and have water/ice in the fridge door. 

If the backyard gets HOT, then why not install a pergola? Under it you can have pavers instead of gravel so a table and chairs can be set up. You can set up a misting system around it. Turns the area from unusable to a place people can envision themselves using.

[Chris B.]

Greg, thank you for the great ideas.  

I've wanted to do something to make the back yard more appealing.  A pergola and pavers are possibly within my budget.  I've had to re-roof a home with cement roof tiles, have gotten the downstairs of two properties tiled, replaced a garage door and several appliances, ah had costly HVAC repairs in the past year so the budget is tight at the moment.  I usually take it out of my reserves, but I'll look into financing it over a year this time as suggested.

I agree vinyl plank is superior to carpet.  As mentioned... the budget but financing this may make it doable now.

What approach does the BP community take toward stairs flooring?  I had actually gotten a quote from HD in the past for this property for vinyl plank flooring and they said they do not do stairs.  It seems like it would look odd if the stairs were the only part of the home with carpet.

Thank you for pointing out the black appliances.  I'll start to keep an eye out for stainless steel replacement options.  I wasn't sure how much of a turnoff they are.  Now may be the time to let them go.

Last round, I had about half a dozen view the property the first weekend and 4 had submitted applications.  No applications were great and the one I ultimately accepted still left me uncomfortable.  As a result of problems, I am not renewing the lease.  My properties in the Phoenix suburbs get great tenants right away.

[Chris B.]

Julie, thanks for your comments.

Two votes now for a slab in the back yard for tenant comfort at least during the nicer months.  Regarding staging, maybe digital staging might be a good compromise given the cost of actual staging.  I'll look into both options.  The different floor is all tile.  I agree there is quite a prominent contrast.  I'm not going to change that now, but thank you for pointing it out.  Its something to consider on my part.  Regarding plants, tenants typically don't give them the attention they need in the desert, but as you mentioned, desert plants that don't require attention may improve the feel and could go along the edge of the wall.  I do allow pets and have found since I transitioned to this, it has greatly improved my applicant options.  Thanks!

[Colleen F.]

@Chris B.  Maybe a desert museum palo verde, or desert willow with automatic watering until established. and some cacti. That is a barren back yard. You could do a pergola and patio would be nice.  Some people have a section of artificial turf but I am not a fan (although dog and kid people are).  You have to jazz up the backyard.  Not sure if you can get a plan for the backyard and then develop it in stages. 

For floors while Home depot financing might be good they aren't the only ones who do flooring. Carpeted stairs aren't an issue being different, it is just that tenants are hard on carpet so if you are going to do it, do it once might be best. That said if you are making choices do the backyard and keep carpet on the stairs for a while. 

[Chris B.]

Colleen, thanks for the input.  Yes, several good suggestions here.  I'll try to do what I can once I get the property back.  I'm thinking of focusing inside first.  Once rented, a tenant likely won't be opposed to me doing some exterior upgrades which will be there for them and future tenants. Given its the beginning of summer now, I think I'll plan to add some greenery to the yard around October along with irrigation which will give it a chance to get established.  A small patch of artificial turf is cheap and a possibility, but I've seen some bad jobs and don't want that.  A 10 X 10 of something quality may work.  I am also leaning toward arranging for a slab to be poured.  I can add a pergola after that.  So all in all, I won't have all of the suggestions in by the time its re-rented, but I can add parts over a year and see where we are with value at the lease signing next year.  I realize that tenants wear out carpet at about a 10X faster than I do and it goes with the territory.  I'll get some more vinyl quotes and make sure they do stairs (properly) prior to signing up.  I just noticed a whole slew of additional SFHs in the area get posted for rent in the last day so it may be another tough round.  Hopefully they are off the market when its my turn.  Thanks!