In a competitive rental market like Phoenix, you need to ensure that your property stays up to the mark in order to succeed. It should be in great shape and make a positive first impression on potential tenants. Ultimately, it is the condition of your property that will determine its financial potential.
The condition of a property depends on its habitability and structural integrity. An asset is said to be in excellent condition when it is well-maintained, upgraded frequently with amenities, built using quality materials, and is fully rent-ready.
On the other hand, a unit in average condition is one that displays evident signs of wear and tear due to its constant use, is only adequately functional, and requires minor upgrades before being featured on the market. Furthermore, when a rental requires major repairs, is uninhabitable, has outdated features and appliances, and is not financeable in its current state, then it is said to be in poor condition.
The Impact Of Property Condition On The Phoenix Rental Value
One of the first things your potential tenants will notice about your property is its condition. Therefore, the rental unit condition plays a significant role in determining its value in a competitive rental market and fetching a high price. The condition of the property affects the following factors:
- Tenant Demand for Your Phoenix Home
The property’s condition directly impacts the desirability of your house. Most renters are drawn to properties in excellent condition, as they offer a wide range of amenities, are situated in desirable neighborhoods and require little to no repairs. Phoenix rentals in good (or even an average) condition also see more demand from tenants who seek budget-friendly options. Although such rentals display some signs of regular use, they are habitable and can be revamped with minor and cost-effective upgrades.
- The Rent Price
Properties in good condition can fetch a higher rent as compared to similar properties in average or worse conditions. They also tend to attract high-quality tenants who can afford higher rent. Phoenix properties in bad order often see a sharp decline in their market value. Their shabby structure and lack of amenities fail to impress in a competitive rental market like Phoenix.
- Long-Term Impact on Your ROI
The habitability of the unit is one of the basic factors that tenants consider while choosing a home. If it does not adhere to the Arizona Habitability Laws and causes inconveniences to the tenants, such as health and safety issues and overall poor quality of life, then the rental value of your asset is going to decline. Plus, it could cause you legal troubles, make you lose potential tenants, disturb your cash flow, and damage your reputation as the landlord.
How Do You Enhance the Condition of Your Phoenix Property?
Improving the condition of your Phoenix rental property can help you enhance its rental value. In addition to adding attractive home upgrades, keep your rental clean and decluttered. Also, rather than going overboard with heavy remodeling, we recommend initiating basic renovations like painting and floor upgrades. It can be a good starting point to increase the rental value of your house.
A local Phoenix property management company like Keyrenter Premier Property Management can help you make cost-effective and result-driven renovations for your rental that enhance its condition. Our experts can effectively guide you through the process and help you redefine its rental value.
For more information, contact us at Keyrenter Premier Property Management.