Home Improvements question

[Clint Heiner]

I am currently living in a home that we own but are looking to move in 3 to 4 years and turn this house into a rental property.  That being said, there are a number of improvements we are thing to make to it and I wanted to get some opinions on whether the return would be worth it.

(1) cement side drive way that would work for RV parking or extra vehicle?

(2) a shed for storage in the backyard and

(3) a front cement deck/patio where I would be able to do cold storage underneath with access to it from the inside basement?

Any advice would be appreciated.

Thanks,

Clint

[Jon Holdman]

The shed is useful if you don't have garage space.  If you have a garage, its not very important.

The driveway might matter if that's the only parking space. If there's already a driveway that's typical for the area, it won't earn you even $1 a month in more rent.

The cold storage area wouldn't earn any more rent, either, at least around here.  If that's a desirable amenity in your area, perhaps it would.

Bottom line is that you need to learn your area as far as rentals.  The best thing is to actually go look at rentals.  You certainly want to "play tenant" and call and ask questions about properties that are for rent.  Most people won't take that next step and go actually have a look.  But you can get a pretty good idea by having an agent show you current listings in your area, especially ones that are tenant occupied.  You want yours to be comparable or slightly better than your competition.  But being dramatically better is a waste of money.  Sometimes new investors think "if I put granite counter tops in I'll get more rent than the typical Formica in my area".  No, you won't.  Tenants who can pay more will go to a nicer area.  Nice counter tops may make yours rent faster, but that's all.