What makes a property rent ready?

Question

Hello.

I have a SFH that I recently bought.   I’ve gotten different opinions from property management companies on the work that’s needed.  I want to limit the work to make the place rent ready but not break the bank as I’m planning for major updates in a year.  It’s zoned for multi family but the paperwork/process is complicated so I intend to rent it as a SFH for now.  Any suggestions?

Ronnie Kendrick · Answer

I have a problem sometimes where I want to keep adding to make it the best possible place to live. But you need to take a step back and understand what your goals are for the property and the tenants you expect to place. What's the competition in the area? If they're not putting in granite, no need for you to do something similar to make it "rent ready".

You said you plan to make major upgrades in a year. My advice would be to get it in decent condition now (carpets cleaned, repainting, deep house clean) then put it on the market. Maybe you get lucky with a tenant who pays what you're comfortable and wants to stay a few years. Then you can put those upgrades off until you have an exact understanding of what people are expecting.

Richard F. · Answer

Aloha,

Regardless of the type of property, location, or budget, every element should be functional. If something does not function as designed, replace it, repair it appropriately, or remove it. There should be no safety hazards, especially tripping hazards, but also exposed sharp edges or plate glass; inadequate or poorly repaired/modified electrical systems; railings, stairs, and decks need to be safe and secure; all windows and doors should operate as intended. Everything should be very clean, including windows, screens, all appliances, light covers, cabinet doors.

All of this will help to prevent a myriad of problems that generally cost you...service calls and multiple trips to fix sticking doors or windows; electrical mystery problems; rehanging/adjusting sliding doors;  liability from falls or injuries that could easily be prevented, and much more. By offering a really clean and functional  unit, you will already be offering more than the typical LL, enabling you to rent quicker and/or at a higher rate.

Painting or floorcoverings should be closely evaluated...a quick and inexpensive redo can make a huge difference in overall appearance, as long as the materials are in the realm of appropriate for the property. Reglazing tubs and surrounds is a great short term improvement if the pipes are not also at the end of their life, but know that if a leak develops, it all will need to come out!

Craig Janet · Answer

This is great advice. Unless the house is completely wrecked or severely dated for the area  "major upgrades" rarely payoff. Fresh paint, new floors, make sure everything works as should and get as much rent as possible. Do the math, if you spend $20-$50K in improvements to get a couple hundred dollars more in rent, it doesn't make sense.

Concepcion D. · Answer

There was a Point of Sale inspection that was done and repairs completed based on this. You make a good point about the kind of tenants will depend on the quality of the rental.  This is one of my biggest concerns as the last thing I would need as a new investor is to deal with evictions. The thing is I’m investing in Cleveland but live in Texas so I plan to hire a property management company.  I wanted to get estimates because I don’t want to sign a contract and be bound to have repairs that I can’t afford at this time.  I’ve talked to a few PMs but, I haven’t found a good fit.

Michael K Gallagher · Answer

@Concepcion D. First if your location is correct and your market is in Cleveland then I would first and foremost go look up whatever municipality you fall under and find out if they have any inspection requirements. They may have a whole list of things you need to do.  "rent ready" means a bunch of different things depending on the goal. If you are just looking to get someone in there for cheap to fill the time until you do a major renovation, then you can probably do less and just list it cheaper to let the price be the appeal.  On the other hand I'm a huge fan of premium products attract premium candidates.

You mentioned asking several PM's for recommendations, are you going to use a PM or were you using them as a consultant on the front end?  I only ask because if you are going to use a PM and have not settled on one yet, they I'd suggest describing your entire vision and timeline for the property to each of them to see if they can align with your goals and intentions for the home.   They are going to be a key piece to your team, so having them bought into the project early will pay dividends down he line if you get aligned now.

Jared Hottle · Answer

Hi there! Here are a few suggestions to help you get your single-family home rent ready while limiting costs:

• Prioritize safety: Make sure all electrical and plumbing systems are in good working order, smoke detectors are installed, and any necessary safety repairs are made.
• Clean and declutter: Clean the interior and exterior of the property, remove any personal items and clutter, and make sure it is free of any damage.
• Neutral decor: Use neutral paint colors and flooring to make the property appealing to a wide range of renters.
• Basic updates: Consider updating the kitchen and bathroom with new fixtures, countertops, and tile, if necessary. Replace any worn or damaged flooring.
• Landscaping: Clean up the yard, trim any overgrown trees or bushes, and make sure the property is well-maintained.
• Professional photos: Hire a professional photographer to take photos of the property to use in your marketing materials. This will help attract prospective renters.
• Price it right: Research rental rates in the area and price your property competitively.

Remember, the goal is to make the property rent ready, so keep your upgrades limited to the essentials and prioritize cost-effectiveness. Good luck with your rental property!

James Wise · Answer

Post pics of what it looks like currently.

Eliott Elias · Answer

You want to be up to par with your competition, don't just make it livable.

Drew Sygit · Answer

@Concepcion D. If you sent X contractors OR inspectors through a property you'd get X different answers - it's part of the process.

When we started out and didn't know much, we'd get 3 bids and have to merge the 10-20% differences to create an updated Scope Of Work (SOW).

Then we'd send our updated SOW back to all 3 contractors to update their bids.

Even then, we'd often find additional things that needed to be done!

Suggest you either walk the property with your PMC and the bids or have them send you narrated, in-depth video you can watch while looking at the bids.

Then YOU decide what needs to be done!

RECOMMEND you break your SOW into 3 segments:

1) Health & Safety + Property Preservation repairs - these should always be done to avoid lawsuits & further property damage- Handrails- Smoke detectors- Water leaks- Etc

2) Needed cosmetic repairs that will affect marketability- Ugly paint- Ugly flooring- Out of date kitchens

3) Miscellaneous that may or may not affect marketability- New windows (assuming old ones work fine)- Above range microwave- Anything that is slightly damaged, but still functional. Many new landlords make the msitake of wanting to replace everything, but to make money on rentals, you want to maximize lifespans

What makes a property rent ready?

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