When you renovate your property, you’re showing potential renters that you care enough to make your property as attractive as possible to potential tenants. Yet, Many landlords make the mistake of over improving a rental property. Rentals need to be hard-wearing, since many tenants don’t respect the property as they would their own home. When tenants leave, the landlord needs to turn the property around quickly to keep income flowing. If landlords are going to be spending money on improving their rental property to attract higher-quality tenants and boost property values, it’s important to focus on the right things.
Homeowners generally get the most bang for their buck in renovations of kitchens and baths.Generally with rentals, improvements don’t need to be as expensive as those in sold residences and flips. Landlords should spend their money on plumbing and cosmetic upgrades (kitchens, baths, flooring, and painting) to ensure against water damage or other upkeep and make the unit presentable. Spending extra cash on tiling, baseboards, or fancy fixtures is often money down the drain.
While renovating your kitchen, it’s easy to go appliance crazy and see no return for the money put into those new appliances. There isn’t a financial benefit by splurging on a $3,000 side-by-side when there are models that look similar and do the same job for a third of the price.
Now, there are a few reasons to update older appliances that should be noted. Since the kitchen is often the focal point of a home, new kitchen appliances may be just the thing that attracts prospective tenants. This could be done as simply as having them all the same color and hopefully from the same decade. Keeping your properties appliances in great condition can cut down on the volume of maintenance requests you might receive from renters. Also, renters appreciate the newer energy efficient models since they’ll most likely save them money on electricity bills.
It’s possible to achieve a high-end look with a mid-priced budget. Quartz countertops have a fairly uniform price and always look good. Vinyl plank flooring, when chosen wisely in lighter beachy tones, mimics trendy white oak well without having to shell out more money for hardwood and its installation.
Cabinets also can be made to look like they cost more than you paid. Refinishing, repainting and adding new hardware can look good instantly. If your cabinet fronts are old-fashioned, buying new fronts and then staining or painting them is a less-expensive alternative to purchasing all new cabinetry. It will add the “wow factor” without the expense of brand-new cabinetry.
This may sound obvious but the best way to maximize the money coming in from your rental is to make sure the running expenses are kept to a minimum. Investing in a few heavy duty or higher quality items throughout the property will ensure costly repairs aren’t eating into your profits.
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