Whether you have just purchased a property that you want to turn into a rental or you have been renting out a home for several years, you may want to look into home additions that can increase the rental value. Although it depends on unique details regarding your property, your best bet to maximize the increase in rental value is to invest in a new bedroom over the other options that are available.
Rent Out a Two or Three-Bedroom Home
If you have a one or two-bedroom house to start with, you will benefit greatly from adding an additional bedroom. It is not ideal to add an extra bedroom to a property with three bedrooms, mainly because most people who are looking to rent a home do not want or need a four-bedroom property. If you have the funds and want to maximize your rental income, you could even take a one-bedroom property and turn it into a three-bedroom property by adding two bedrooms at the same time.
Fairly Easy Home Addition to Tackle
While some additions are a little more demanding, such as bathrooms, because they need both plumbing and electrical work, bedrooms fall into a category that is rather easy to accomplish. Adding a garage might seem like a useful addition, but it is not something that will noticeably increase the rental value. Also, as long as you have one or two bathrooms, you should be more than okay. A bedroom’s main features include a door, window, and a closet, which generally do not come with any complications. When you consider these details, you can expect the overall project to take less time compared to other ones.
Appeal to More Potential Tenants
Having more bedrooms is exactly what you want with your rental property to increase its rental potential. Not only will it attract more potential tenants, which will reduce the time that it takes to get rented, but the greater competition will allow you to easily charge more for rent and generate more income.
Increased Square Footage and Value
Another positive feature that comes with adding a new bedroom is that you will increase the square footage of the home. Many renters look for properties that are decently sized, and while even adding a bathroom will increase the square footage, a bedroom addition will add substantially more space. With another bedroom added to the property, you can expect the value of the home to increase. If you ever decide to sell the property, you will find that the extra bedroom can make a huge difference in your experience with having it on the market as more home buyers will be interested.
Focus on an Energy-Efficient Addition
When you take the time to get a new bedroom in your rental home, you can take advantage of the most energy-efficient additions. For instance, you can get an energy-efficient ceiling fan and windows, which will save you or the tenant money, depending on who pays the electrical bill. It is also possible to invest in making sure the walls are well-insulated to maximize heat retention in the new bedroom.
Although you will have plenty of opportunities to improve aspects of your rental home, with projects such as replacing the front door, getting new windows, or repaving the driveway, you should not overlook the potential impact that adding an entirely new bedroom can have on your rental income. It might be one of the larger projects that you can take on, but it is worthwhile in the long run.
If you have any questions about home additions or want more information, contact us today.