Background Information
My clients originally purchased their home in 1997 and used it as a family home. However, they moved from the Bay Area in 2015 and decided to rent their home. They own two rental properties in different states.
They are do-it-yourselfers who often improve their own property, but do not have the time to dedicate themselves to lengthy improvements since they live on the East Coast.
Originally, they had a long-term tenant for five years, but in the past few years, they have had more frequent turnover. While they had various property managers over the past few years, they knew there were significant improvements for the property to rent for higher market value.
They were specifically looking for a property manager who could also help them manage various home improvement projects.
Problems
My client's home is located in a high-end market, however, they were accepting rent below market value due to the dated laminate flooring, laminate countertops, hardware, and fixtures.
The home also needed new roofing, gutters, an HVAC system with an air conditioner upgrade, refinished decks, and landscaping.
Solution
Harper Properties took over for the prior property manager who had listed the home with the caveat that the “owner is open to discussing repairs or upgrades to ensure your complete satisfaction”.
Rather than shifting the responsibility to the tenants, Harper Properties immediately began gathering estimates, creating a detailed project plan, and suggesting renovations to the home owners.
Over the course of less than two months, all deferred maintenance was completed with the owners choosing all finishes based on their tastes in partnership with Harper Properties.
This included quartz countertops, replaced and refinished hardwood floors, gutters, HVAC system with air conditioner, refinished decks, refinished siding, modern hardware/fixtures, professional landscaping and tree trimming.
After all renovations were complete, Harper Properties hired a professional photographer to highlight all the features of the renovated property and listed it on Trulia, Zillow, Hot Pads, and Facebook Marketplace.
Results
While the prior tenants were paying $7,600, the new lease was almost $10,000 which represents close to a 22% year-over-year increase! The upgrades also increased the value of the house more than $400,000 which represents a 400% return-on-investment.
Before Pictures
After Pictures
About the Author
Shannon Thoke
Owner & Managing Broker
Shannon Thoke is a real estate professional with more than 12 years of experience and serves as a leader at Harper Properties, Inc., a full-service brokerage specializing in leasing, property management, buying, selling, and renovation consulting. Her expertise includes real estate sales, marketing, renovation planning, construction, technology, and project management.
Shannon holds degrees in Finance and Accounting, Real Estate Studies, and Business Administration, and is a licensed California Real Estate Broker, Realtor®, and Project Management Professional (PMP®). She was also recognized as Dwellworks Corporation's Rookie of the Year for her outstanding achievements in the industry.
