Improve Your Property in 20 Steps | Wheelbarrow Profits

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P r e s e n t s


















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IMPROVING A PROPERTY
Improving a property doesn't always involve major
changes and a huge expense. Sometimes, it's the
combination of smaller ßxes that can really pull
a property together.
IMPROVE OR REPAIR Le changes you make will be
classified as either an improvement or a repair,
and while both make the property more appealing
to tenants, repairs typically aren't very
expensive and are tax deductible for the year in
which they're made, while improvements are more
costly and are depreciated over the course of
several years. Repairs, such as a leaky faucet or
a broken doorknob, keep conditions livable but
don't add much in terms of value to the
property, but improvements, such as replacing a
roof and replacing the electrical wiring, do add
value.
FROM OUTSIDE IN When it comes to what we fix on
the property, we always start from the outside
and work our way in for the pure fact that the
outer appearance is what potential tenants see
first. If their impression is negative, they're
not even going to make it through the front
door. Change the perception of the property, and
you increase the interest of potential tenants.
INTERIOR FIXES Once the outside is taken care of,
we tackle the inside. We start by working on any
vacant units that need to be turned as it's
vital to get these units up and running to
generate revenue. To start, these units need to
be painted, carpeting and flooring should be
replaced if it's old, worn, or damaged, all
unattractive light fixtures need to be replaced,
and all plumbing must be in working order. THE
HEART OF THE HOME Le heart of the home is the
kitchen, and it's where we focus much of our
eRort. We replace countertops, change out sinks
and faucets if need be, and update appliances if
they're old and not working properly. Rather than
replace entire cabinets, we try to repaint or
reface them if possible. COMMON AREA On to the
common areas, which include the basement,
hallways, and laundry room. We install
fluorescent lighting to reduce the electrical
expense, and install photocells outside to
control electricity usage.
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20 ITEMS TO FIX
To follow is a list of the top 20 items that are
beneßcial to ßx in order to make the property
more appealing and retain quality tenants. Keep
in mind while reading the below information that
you only have one chance to make a great ßrst
impression, so any changes that can be done are
extremely beneßcial.
land?capin Trimming the trees and shrubs, mowing
the lawn, and trimming the weeds can not only
revitalize the property and make it more
attractive, but it can also let more natural
light in to the units. We also install
inexpensive shrubs around the property and water
the lawn so the exterior looks clean and vibrant
without costing a fortune. Pain? One of the
easiest things you can do to massively increase
the value and appearance of your property is to
paint the facade. You'll be amazed at the
transformation of your building once you've
applied a fresh coat of paint. We begin by power
washing the exterior to remove any dirt or rust
from metal structures, then we add paint to
stairwells, doors, and siding. We also
add budget-friendly shutters to the windows to
add a bit of contrast and decoration. Le vacant
units get painted in a two-tone color scheme,
the trim and doors get painted with bright white
semi-gloss, and the walls get painted shaker
beige. Tenants love the fresh clean look, and
it's one of the least expensive ways a landlord
can increase the perceived value. We've even had
tenants move from their apartments that were
lower in rent to newly turned higher rent
apartments all because they liked the new paint
job.
Mailbo e Ley're usually one of the first things
potential tenants notice when they pull up to
the property, so ones that are damaged or rusty
aren't going to be a very good sign. We suggest
replacing all the mailboxes to maintain
uniformity. Ley cost around 25 per mailbox, but
can be priceless in terms of making a positive
impression. DUMP? ER Le last thing you want is
potential tenants pulling up and seeing an
overflowing garbage dumpster that not only looks
unattractive, but also smells. It's certainly
not a positive impression. Our solution is to
put fencing around it so it's out of sight yet
easily accessible. We match the color of the
fence to the exterior of the buildings to give
the property a uniform look. u er? You don't
want rainwater puddling up against the building
where it could eventually find a way to
penetrate the foundation and create havoc in the
basement, which is where gutters come in handy.
Keeping gutters clear of debris can prevent
water from pooling near the structure. Because
gutters are so visible on a property, they're
also one of the first things that a potential
tenant notices. We install white PVC gutters, but
you can match the gutter to the color of the
siding.
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Drive?ay Sealing the driveway doesn't increase
the value of your property, but it does add a
fresh new look. It lowers the deferred
maintenance on the property if performed every
few years. Sealing adds a layer of protection
from the elements and improves the appearance
while increasing the life of the asphalt. Before
adding sealer to the driveway, be certain to
patch any holes. Once the sealer has been
applied, you can re-stripe the parking lot.
i na e Lis is one of our favorite items to
implement once we've assumed ownership. We like
to change the name of the property to announce
that the property is under new ownership. Lis
is critical when repositioning a property that
has a sub par reputation. Re-branding makes the
new ownership official and shows the tenants
that things are about to change for the
better. Signage includes relevant information
such as the office location and phone number.
6.

NEW
OWNER
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common area Revitalizing the common areas is
essential. Some landlords neglect these spaces,
which include laundry rooms, club houses,
hallways, stairwells, parking lots, and store
rooms, because they think they lack importance.
We view laundry rooms as a necessity for
tenants, especially if the competition has them.
We contract the service out to Coinmach and sign
an agreement with them to service the units for
a split of the revenue. Le company oRers an
up-front incentive to solicit the business, and
the landlord receives new machines and one less
headache (and less expense) to worry about. Lese
areas should always be maintained for liability
reasons as well as for aesthetic purposes. We
appreciate our tenants and the the business they
provide, so it's only fair to oRer a clean, safe
environment. It will also be easier to rent to
prospective tenants if they see that the common
areas are well maintained. fence Railin We're
still surprised when properties that
ou door Li h in Before you take over the
property, take a trip at night to observe if
there are any areas that are not well
illuminated. Tenants feel much safer if the
property is well-lit, and it will reduce a
landlords liability if someone were to fall at
night. We like to install photocells, which are
lights with sensors that turn on in the evening
and shut oR in the morning when the they sense
sunlight. It reduces the amount of electricity
used and there's an assurance that the lights do
turn on and oR properly. We've used timers in
the past, but found them problematic because
they have to be re-programmed as the days
lengthen and shorten. We install sensors in the
hallway that turn the lights on when tenants
enter, and shut oR after a couple of minutes.
You can even install sensors in the laundry
rooms so the lights will shut oR automatically
when the rooms are unoccupied. Lis simple change
means saving big when it comes to the electric
bill.
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are on the market have rusty railings or
dilapidated fencing. Lese are easy repairs that
cost very little yet yield substantial returns.
A little paint, a little rust removal, and some
power washing can do wonders for the aesthetics
of a property. We start out by using a pressure
washer to remove any rust from railings, then go
on to paint the railings, doors, and
shutters. Depending on the property, we may also
install fencing.
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cabine? Le kitchen is the most expensive, yet
most advantageous, room to rehab in an
apartment, so trying to find ways to save money
is vital. It all depends on the type of
properties in which you're investing. If you're
investing in A or B properties, then you may be
forced to install new cabinets, but in C
properties, not so much. It's not usually
necessary to replace cabinets, but to repaint or
reface them instead. We either reface the
cabinets or paint them white and change the
knobs and handles. It results in a whole new
look for the kitchen at a fraction of the cost.
One of the biggest mistakes a new landlord makes
is over-fixing a property. Our goal is to keep
costs down while oRering clean, safe, and
aRordable housing that doesn't break the bank.
floorin? When you acquire a property, every
apartment should be assessed to see if the
flooring needs to be repaired or replaced.
Unless the carpeting in the bedroom is in good
condition, we replace it with vinyl wood
flooring. If we decide to go with new carpet
instead, we shop at the factory outlet to get it
for a fraction of the price. Our long term goal
is to replace all of the carpets with vinyl wood
flooring. Tenants love the look and feel of it,
and it's easier for us to maintain every time
the unit is vacated. Carpets need to be steam
cleaned and, over time, are more likely to get
damaged. You'll typically find that tenants are
willing to pay more in rent if the unit has
vinyl flooring rather than carpeting. door
hard are Lis is one simple area that most
landlords overlook. After we finish either
re-facing or repainting the kitchen cabinets, we
move onto replacing the hardware. Le knobs on
cabinets show the most wear and tear and take a
lot of abuse. For a few dollars a piece, your
cabinets will look brand new. Considering
doorknobs are used on a daily basis, replacing
them can create a dramatic improvement. indo
rea men? In addition to providing your tenants
with added privacy, incorporating window
coverings will allow you to collect more in
rent. Coverings also add relief from the sun,
protect the furniture
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ceilin fan e hau
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Bathrooms that don't have exhaust fans to remove
steam from showers are a breeding ground for
mold. Installing exhaust fans will remedy this
problem and add a modern look to the bathroom.
Le installation process is inexpensive, and most
tenants appreciate it, especially during the
summer months. Lese fans can also double as a
light fixture.
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and flooring, and instill a homey feeling. Lis
is one improvement that will allow for a quick
return your investment. We can charge an
additional 10 to 15 per month for a unit with
window coverings, yet they only cost around 150
to install. We recoup our investment within a
year, and we have a happy tenant as well.
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coun?er op? Tenants spend a great deal of time
in the kitchen, which is why it's so important
to have stylish, sturdy, and functional
countertops. We'll only change the countertops
if they're damaged or extremely unattractive. A
and B properties will need to be furnished with
granite or marble countertops, especially if the
competition oRers this feature. In C
properties, we can install inexpensive Formica
tops. You'll be amazed at the quality of Formica
tops that are currently on the market.
li h? fi? ure You can often tell the age of a
property by the outdated light fixtures. Lis is
another simple fix that most cheap landlords
overlook. Go to a lighting store and select
modern light fixtures for the kitchen and
bathroom. Your tenant will thank you.
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ara e/ carpor Tenants are more likely to favor a
property that oRers them additional storage
and/or parking room. Not only do they have a
place to properly store their items or park, but
as a landlord, you get the added benefit of
having junk stored away instead of strewn all
over. Le property will rent quicker and will
always have more long term value. Practice
frugality if you're reconditioning these
structures. Le goal is to accentuate the
exterior while providing security for the
tenants belongings.
a her Dryer?
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Lis may seem like an obvious fix, but
many landlords allow their laundry machines to
fall into such disrepair that they become
inoperable. Older machines tend to break down
quicker, and most landlords dont want to sink
any more money into an old unit. Our solution is
to sell all the old machines and bring in a
laundry service company, such as Coinmach, which
will furnish us with new machines and pay us an
upfront commission. For around 50 of the
revenue, they're responsible for maintaining the
machines and emptying out the change on a
monthly basis. We love the arrangement it frees
up our maintenance crew to tackle other jobs and
we dont have to worry about replacing machines
when they decide to stop working.
U ili ie
20.
Our first investment property that we purchased,
a four-plex, had one electric meter that
serviced the entire property. We would drive by
and see the lights left on and the air
conditioners running while the windows were ajar.
We quickly realized that if someone wasn't
paying for a service, conservation was the last
thing on their mind. My solution was to have an
electrician split the utilities and install
separate meters for each unit. It was a painful
solution in the short run, but we recouped my
investment within three years. All of a sudden,
the lights were being turned oR and the air
conditioner only ran on the hottest days. A
property where the landlord pays for all
utilities is called All Bills Paid. We've learned
to try to avoid this situation, unless the
utilities can be split or the landlord can
institute a Ratio Utility Billing System, which
is a system where the landlord bills the tenants
for their share of the utilities. Studies have
shown that once tenants begin to pay for their
own water usage, consumption drops by as much as
40. Le arrangement, however, typically depends
on the area. If the apartment complex down the
street is paying for tenants utilities, chances
are you won't be able to push oR the utility
expense to the tenants. Unfortunately, utilities
such as water and heating oil seem to be
increasing every year and
results in a substantial percentage of a
landlords expense. As a business owner, it's a
huge risk when you have no control over those
escalating expenses
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RENOVATION INSPECTION
CHECKLIST To help you determine what needs to be
done, look over the below Renovation Inspection
Checklist and check items o as you walk around
your own property.
E ERIOR ood fi Replace
Doors
Windows
Brick/Siding
Paint
Landscaping
Walkways
Driveway
Curbs
Garage/Carport
Fences
Roof
Drainage
Lighting
Signage
Gutters
Balconies
Chimneys
Garage area
Foundation
Mailboxes

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In?erior ood fi Replace
Carpet
Ceramic tiles
Doors
Drapes/Blinds
Smoke detectors
Electrical
Water heater
A/C unit
Paint

ki chen ood fi Replace
Cabinets
Countertops
Stove
Refrigerator
Sink
Dishwasher
Garbage disposal
Flooring
Light fixtures

ba hroom
ood
fi
Replace
Cabinets Floors Tub/Shower Vanity Lighting
Wall tile Wall paint
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livin area ood fi Replace
Walls/Ceilings
Doors
Floors
Light fixtures
Outlets
Windows

common area? ood fi Replace
Lighting
Floors
Washers/Dryers
Doors

Keep in mind that all of the aforementioned
doesn't need to be done, but the more you can
complete, the better it's going to be for
increasing the value of your property as well as
attracting new tenants and retaining the ones
you have.