Rental properties provide passive income to an investor and, naturally, the investor would wish to maximize the income. Property maintenance helps to achieve this but, at a certain point, renovations always become necessary.
There are a few reasons why investors would renovate their properties. The property may have been completely depreciated meaning that the property has lost value over time.
The investor might also be making improvements to grow the value of the property in preparation of selling it. The most common reason for rental property renovations, however, is to increase rent and maximize returns.
Whatever your reasons may be, there are some considerations to keep in mind when renovating a rental property. Most importantly, you need to make renovations that add to the property value. Highlight these renovations in your rental ad to attract tenants to your property and minimize the vacancies.
Here are some of the best renovations you can make to your rental property.
Kitchen Renovations and Remodeling
A beautiful kitchen can easily become one of the most attractive features of your property. Aim to increase the functionality of the kitchen by repairing cabinets, replacing worn-out appliances and matching the finishes of counters and islands.
To minimize the cost, try to judge what needs repair and what needs to be replaced. For example, kitchen cabinets don’t necessarily require replacement. You can usually restore them by simply sanding and painting them.
A few inexpensive upgrades can also help to improve the aesthetic. Installing a backsplash and a new faucet are some of the minor changes that would make your kitchen more attractive.
Upgrade the Bathroom
You may want to consider making some changes to the bathroom to give it a modern, contemporary look. A good place to start is replacing bathtubs with walk-in showers.
Bathtubs consume a lot of space and use a lot of water. Replacing them makes the bathroom more functional and you gain long-term savings on water costs.
It is also advisable to replace toilets if they’re not low-flush. Low-flush toilets will also help you save money on the long-term water costs. Make sure to get the same color for all the toilets in each unit so they will be easy to replace.
Create a Designated Space for Laundry
Most tenants nowadays refuse to move into a premise without certain ammenities, including a washer and dryer. If you own a single-family or multi-family home, you may only need one washer and one dryer. If you own an apartment complex or a similar building, adding them to every unit may be too expensive.
Alternatively, you could create a designated space in your apartment complex for laundry if there isn’t one readily available. You can utilize the space in an empty room or the basement to achieve this.
Creating a laundry room provides convenience to your tenants and it would make the property more attractive to live in. Make sure to rent the laundry appliances instead of purchasing them because their repair and maintenance could be costly and negatively impact your bottom line.
Add a Fresh Coat of Paint
A freshly painted property significantly increases its appeal. This can provide significant savings when tenants vacate by simply doing a touch-up rather than applying fresh paint to entire rooms all over again. Using neutral colors reduces the probability of renters wanting a different color.
To save on costs, you can paint the rental units by yourself. Alternatively, you could call a few friends or family members to help speed up the process.
Floor Replacement
A good choice of flooring can make or break the look of your property. Flooring is very important to the property’s aesthetic and it’s among the most noticeable features when a tenant first walks into a premise.
Investors have recently found themselves having to choose between carpeted floors and hardwood laminate floors. Each of these floors has its advantages and drawbacks.
Laminate floor products may be relatively expensive but they last for a very long time. They are also much easier to clean and would provide your property with a contemporary finish. The main drawback is that when fixing laminate floors, the result would be noticeable for a few years.
A carpeted floor on the other hand is less costly. Carpet companies may offer to move furniture during installation, making the process go much quicker. Carpeted floors also absorb sound, which is pleasing to tenants. The downside of carpeted floors is that they trap odors and would require regular maintenance.
Exterior Renovations and Curb Appeal
Curb appeal refers to how attractive your property looks when it is viewed from the outside. Your property’s curb appeal provides its first impression, so try to make it remarkable. There are a few steps you can take to achieve that.
Start With a Pressure Wash for the Exterior
A good pressure wash helps to remove dirt and stains from your exterior walls, leaving them completely clean.
You can easily do it yourself but be careful not to cause any damage as the water flow is extremely intense.
Add Fresh Paint to the Exterior
If the exterior needs more than a simple touch-up, a fresh coat of paint would make it look a lot better. Painting the exterior of your property might be more expensive than the interior, but it’s worth the cost.
Exterior paint makes the building look more attractive and, naturally, that would pique the interest of prospective tenants. It also makes the property look less run-down and that keeps your existing tenants happy.
Landscaping
This sounds like a fairly simple measure but it goes a long way in improving your curb appeal. Planting a tree or two on the front of the property, trimming any shrubs and mowing the lawn would make the property much more attractive.
Bottom Line
When renovating rental properties, try to achieve a balance between cost and functionality while adhering to the set standards. Remember, a tenant may not be as committed to taking care of the property as you would.
Once you complete the renovations on your property, we suggest seeking out qualified accountants to assist you with getting tax deductions.
At Gifford Properties & Management Company, we greatly value the property that you entrust us with. Our property management team takes the necessary steps to carry out preventative maintenance and keep your property in pristine condition. Reach out to our professional team to start enjoying our unparalleled property management services.
