Recent stock market volatility have you concerned about your portfolio? Real estate is one of the largest sectors of investment, both public and private. In times of volatility and uncertainty, we are reminded about the safety of a real estate holding. While it could never be guaranteed that something will definitely appreciate in price, the long-term trend suggests that real estate does appreciate in value over the long-run while not being subjective to wild price swings that you might see in an equity.
Many financial planners would argue that real estate should be a holding in any well-balanced portfolio. Additionally, real estate has the potential to create substantial yield while you hold the asset thanks to the ability of renting the property. Thinking about investing in real estate and planning to rent it out? We assist many clients with buying, whether resale or preconstruction, as an investment vehicle to rent out. It is always recommended that you speak to your financial planner and tax advisor to understand the role of real estate in your portfolio and tax situation.
We can help you hone in on an apartment that meets your needs for an investment, and additionally, can help you successfully rent it as we understand what prospective tenants are looking for and what they value.
So, you made your investment purchase and want to rent your apartment, what are prospective tenants looking for? What can you do to extract more value out of your investment?
What Prospective Tenants are Looking For:
Value- The state of the rental market will dictate just how much value a prospective tenant may seek, but value is always something a renter will be looking for. Hire a broker to help position your apartment on the market to remain competitive with other listings in the building and within a similar price range.
- How much are the application fees? Should you consider paying them as a concession to remain competitive?
- Will you pay the broker’s fee?
- What are the building amenities? Is access to them an additional fee?
Aesthetics- While this is something more personal, we do see, however, that the majority of renters are looking for a unit that offers light and some views as well as an overall clean condition. If you bought preconstruction, your unit should be in brand new condition for the first tenant. On the other hand, if you bought a resale unit, be sure to make sure the unit has a clean appearance to attract as many prospective tenants as possible. They will be paying attention to things such as:
- Condition of bathrooms, kitchen, and flooring – are edges of doors, counters, etc. clean? Do the appliances function properly? Is the flooring cracked?
- Does the apartment need a fresh coat of paint?
While some of these may seem like small items, they ultimately influence a prospective renter’s decision to pick one apartment over another, especially if they are deciding between units within the same building.
Ways to Extract Additional Value out of Your Investment:
There are additional ways to squeeze a bit more rent out of your unit and also have an increased likelihood to win over a prospective tenant as they are shopping around. While some of them are an expense upfront, they are some of the most common requests we see from prospective renters. Thus, you will most likely recoup the cost of these investments into your property.
- Consider building out the closets to maximize storage with systems such as California Closets
- Install Electric Shades/Window Treatments
- Ensure the washer/dryer are good machines. It may be worth it to upgrade the machines from the base units that came with the apartment
Hiring a broker will be crucial to maximize the rent received. They are able to position your apartment on the market to appeal to the right audience and spend the time to understand the intricacies of the board package and fees.
- Price correctly! Rely on your broker’s expertise to price correctly so you can rent sooner rather than later.
- Get the condo leasing application to review the fees. That way, your broker can speak to prospective tenants about all fees associated with the unit. Additionally, this is important to understand in case you need to offer concessions to remain competitive
- Good photos matter!
- Get a floorplan of the unit to place online with the listing
We currently have a wonderful selection of apartments on the market for rent:
50 Riverside Boulevard, 11L
4 Bed | 4.5 Bath | $24,995/MO - View Listing
One West End Avenue, 28C
3 Bed | 3.5 Bath | $14,995/MO - View Listing
188 East 64th Street, 2603
1 Bed | 1 Bath | $3,995/MO - View Listing
Additionally, we have successfully executed leases for our clients around the city including:
- One Beacon Court - 32C, 39D, and 34B
- 255 East 74th Street, 5B
- 20 Pine Street, 1007
Questions about investment in property with the goal of renting the unit for income? Contact us to arrange an appointment to discuss your goals and we can tailor a collection of units to meet your needs.