As time passes, your rental property will age. To remain competitive with other units, it’s essential to raise the value of your rental by performing renovations. You want to avoid a string of vacancies that can diminish your finances. A rental property that’s well-maintained and attractive will continue to spark interest from potential renters and keep your current ones long-term.
When you’re starting a renovation project for your rental, focus on the improvements that renters prioritize. Too much attention to an aesthetic, for example, may waste your money. Analyze what’s valuable for people renting the unit and conduct upgrades with those ideas in mind.
Here are 4 renovation tips to consider:
1. Installing New Floors
A sought-after renovation that renters prefer is hardwood flooring. The maintenance is easy compared to having carpet flooring which needs a regular deep cleaning. Although hardwood flooring is more pricey, the advantages are numerous.
Hardwood flooring has a classic look and makes your rental more attractive. It lasts for a long time and the color doesn’t fade. It's solid and durable. The value of your rental will also increase when you install hardwood floors. This means you can set a higher rent price.
2. Curb Appeal
One of the first things that can catch the eye of your prospective renter is how your rental looks from the outside. Even someone just passing by can notice and form an impression on your property based on the exterior. This makes curb appeal a heavy priority.
You want to grab potential tenants’ attention and seal the impression that your rental would be a great place to live in. To succeed in this goal, you need to maintain the front yard and/or building facade. Hire a gardener, painter, or even make it a DIY project if you have the time and skills.
Here are ways to make your curb appeal more noticeable:
- Planting grass
- Creating a garden corner
- Adding a fresh coat of paint to the property exterior
- Trimming overgrown trees
- Hiring a good landscaper
- Placing planters near the entryway
- Enhancing the outdoor area with stylish night lights
- Improving the walkway up to the door
3. Kitchen Remodeling
Potential tenants often evaluate the kitchen area when scheduling a property viewing. They look at the appliances to see whether they’re in good working order and energy-efficient. If a kitchen has appliances that are old models, then the utility bills are going to be significantly higher.
Landlords can then work on replacing appliances and purchase matching finishes to coordinate and provide a sleek appearance. Renters are also particular to durability in the kitchen. They prefer to have solid countertops to avoid damage. Otherwise, their security deposit will be used for repairs.
As a rental owner, you can give your attention to the following areas:
- Cabinets. A relatively easy DIY project, you can save more by applying a new coat of paint, varnish, and sanding your cabinets. You don’t have to install new ones, though a simple replacement of newer hardware will have your cabinets looking fresh and current
Countertops. Granite countertops can elevate the kitchen’s appearance. It can also handle scratches and stains. Renters prefer an easy-to-clean countertop for quick maintenance. Aside from granite, you can also check out quartz and marble countertops as good alternatives, though these are pricier
Additional fixtures. When renovating the kitchen, you don’t have to spend lavishly. You can spend on little touches that can improve your kitchen area such as tile backsplashes, stylish lighting, and modern faucets. There are plenty of inexpensive options that can still contribute to making your kitchen attractive
4. Bathroom Upgrades
Compared to other major areas of the house, rental owners will spend less when remodeling the bathroom. Simply replacing the toilet, bathroom fixtures and installing cabinets is easier. A lot of bathroom fixtures are also inexpensive and range in different styles and materials.
Renters appreciate a spacious bathroom, so this is important to remember when planning a bathroom upgrade. Here are suggestions to enlarge the space:
- Install pocket and sliding doors
- Prioritize a walk-in shower over a bathtub
- Put up extra shelves for additional storage
You can also recycle old materials such as dressers for more counter space in the bathroom. If you have an extra budget, following a 1:1 bathroom to bedroom ratio is a major selling point, especially if you plan to accept different renters in one property.
Purpose of Renovating a Rental Unit
Some landlords may ask if it's practical to spend on property renovations. They may think having an occupied rental is enough and they don’t need to perform improvements anymore. They may not want to spend extra on rental upgrades.
The rationale behind renovating your rental space is the income you can optimize as a result of the improvements. Updating and replacing your appliances, repainting the walls and exteriors, keeps the value of your home high. It also inspires current renters to renew their leases.
Other Benefits of Performing Property Renovations
A Way to Stand Out From Other Rental Homes
If your amenities are similar to other rentals, then renters will not be as attracted to your place. You need to differentiate yourself by having unique and useful features that renters desire. This also allows you to price your rental a bit higher than the others.
Incorporate Energy Efficiency
Adding solar panels, appliances with inverter technology, and programmable HVAC systems can help lower utility bills. This helps the tenants save more so they’d pick your rental home over your competitors.
Brings Better Satisfaction to Tenants
When you renovate your rental with durable furniture and fixtures, your renters will be motivated to stay long-term. They will also reduce their maintenance requests given that the appliance units are newer and less prone to damage.
Increase of Rental Property Value
The better the amenities are in your rental, the higher the resale value of the property if you decide to sell it in the future.
It’s vital to conduct rental property renovations in order to maintain your real estate investment’s profitability. Start with these recommendations! If you need any help with taking your rental property to the next level, whether it's from lease agreements to tenant screening, contact Limestone County Properties today. We’d be happy to speak to you about our services!