Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
When looking at a down real estate market there are opportunities for buyers and investors alike. One of the best ways to leverage a down market on Long Beach Island is to buy a property, rent it out and then update it with the plan to sell as the market rises. This takes advantage of all areas of the LBI real estate market and gives you the plenty of options.
As I mention above this investment strategy seeks to take advantage of all aspects of the LBI real estate market. It combines elements of buying a rental property with elements of building a spec house and together can create a nice mid-term investment.
The key to this investment strategy is to find a location and house style that will appreciate. An older contemporary is a great example. Finding a home that offers the design many buyers look for today (reversed living, roof deck, etc) but is in need of cosmetic updates (flooring, paint, etc) is ideal. Likewise a Cape Cod that is above base flood can offer classic beach charm and be renovated into a beautiful beach house.
While all locations on Long Beach Island will see interest in rental market, there are some ways to maximize perspective tenants interest. Oceanfront, ocean block, and Oceanside properties tend to rent more quickly than their bayside counterparts. Homes in Beach Haven or in close proximity to local attractions will also see increased activity.
Keeping property looking neat and clean is perhaps the most essential step in a successful LBI real estate rental investment. An investor should remember that there LBI home is not the dumping ground for old furniture. Rather it must be furnished and decorated to attract the proper clientele. This will increase the weekly rates and should the property more profitable.
Any updates made to the property should be done with the long term goal of resale. For example you can add hardwood floors that may be worn during the rental season but can be refinished to look brand new when the time comes to sell.
A solid rental history can be a great asset when selling a house on Long Beach Island as the proven rental income can help increase the marketability of a property and attract additional interest. It is important to remember that even with the added bonus of rental income, condition matters a great deal to buyers in the LBI real estate market. The following are a few basic and relatively inexpensive steps that can be taken when Preparing to Sell Your Rental Property on Long Beach Island NJ to help increase the sales price:
Above all else, clean carpets may be the most important step to take when Preparing to Sell Your Rental Property on Long Beach Island NJ. Carpets can show stains and dirt more than tile or hardwood flooring and can also retain a “musty” smell. It is in fact often the carpets that account for the “beach” smell that many people attribute to older homes on LBI. In some cases replacement of the carpets may be the best route, however often times a simple cleaning by a professional company will not only remove stains but also give the house a clean smell.
After the carpets, paint on the walls can very often be a tell tale sign of a rental property and lead buyers to believe the house is not well cared for. With the volume of renters checking into and out of the house (in most cases every week) it is common and expected that walls will become scuffed and soiled. While painting may be a daunting task, a touch up paint job or regular cleaning of marks will help give buyers a better first impression. The entire painting of the interior is indeed a large and costly expense, however depending on the condition of the property, it may be a justified cost to ensure favorable showings and the eventual sale of the property.
Lastly, the furniture in the house may need to be addressed. If a particular item in the house such as a couch or a chair has become dirty beyond the normal expectations of daily use, it would be wise to remediate prior to listing the house for sale in the LBI real estate market. It may be possible that the same company used to clean the carpets can also clean the furniture thus saving time and money! If the item is beyond cleaning, remove it from the house. It would be better to have nothing in the room rather than old and dirty furniture which can give a negative impression to buyers.