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Property Management Blog

How to Maximize Your Return on Investment on Your Brentwood Rental Property

System - Tuesday, May 3, 2016

As a rental property owner, you want to maximize the return on your investment, and to do that you need to be able to balance the cost of improvements with your income potential. There are things you can do to increase the money you earn and the return you gain that don’t cost a lot.


Identifying Potential Improvements

An excellent example is a property that we recently rented out. We had a home that was three bedrooms. However, the master bedroom had a bonus sitting room and there was a den downstairs that had a closet but no closet doors and no closet hardware. We knew that this property could have been turned into a five-bedroom home if the owner would just make a few small improvements.

Increasing Cash Flow and Value

The property owner took our advice and closed the closet in the den with a door and put up a wall to separate the sitting room from the master bedroom. The rent difference was so much more than what the cost was to install the closet and the wall. A lot more rent was earned – the property now rents for almost $2,500 a month. That has improved the investment dramatically, and resulted in additional monthly rental income for the property owners. It cost less than a month’s rent to make these improvements, and those changes increased their gain. It will also set up them up for a higher home value and an increased cost at resale time.

How to Maximize Your Return on Investment on Your Brentwood Rental PropertyWe try to make these suggestions for all our owners, whether they are small or large. If something doesn’t cost very much but you know it will make a huge difference on the return you gain on your rental home, you should never hesitate to make that improvement.If you have any questions about maximizing the return you can earn on your investment property, please contact us at Select 1 Realty.


Select 1 Realty

1500 A Street, Antioch, CA 94509
Antioch 925.706.9000
Brentwood 925.308.7311
Fax: 925.706.7735
Toll Free: 800.887.3532
Email: info@select1realty.com
BRE #00791162
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