We deal with a lot of rental property owners and one of them had a good point that I thought I would share with everyone. One of the biggest challenges that you face as a landlord is how to get more rent out of your units with investing a lot of time or money into them. If they are outdated or in need of repair, they are going to be harder to rent and you will get less rent for them (that is just a fact of life). So when a customer approached us about buying 10 kitchens at once, I had to find out why. He made a great point about rental units that I had never thought about.
He said there are 3 things that stick out in an apartment or rental unit: the carpet, the kitchen, and the bathroom(s). If any of them look worn or outdated, you will have a hard time renting a unit. Since kitchens can be expensive, he searched high and low to find a cost effective solution and he came across us. He said that for roughly $3,000 per unit (10 units) he could update the kitchen cabinets and the bathroom, and raise the rent an extra $250 a month! That basically means that he has the renovation paid off in a year, and he is now bringing in an extra $250 per unit from here on out. Not only that, but the fact that they had updated kitchens and bathrooms made the units more marketable to renters. I never really thought about it that way. Most landlords are looking for ways to avoid spending money, when this guy was out there spending money to make more money. He didn’t want me to mention his name, but he said it was okay to share his secret.