Vacant units can lead to more maintenance and advertising costs and a halt in rental income. Landlords want to avoid this or at the very least shorten the time a rental is vacant. To do this, you need to keep your rental in its most attractive state to retain its value and draw in renters.
A well-maintained rental unit captures more interest and inspires loyal tenants. It’s then a great strategy to perform renovations to add more value to your unit. Just make sure to not over-invest or make improvements in the same way you would for your own residence. Keep your updates focused on function as this will appeal to the widest range of tenants.
How do you provide the best renovations for your renters? Look around and assess their needs. Once you identify the areas they prioritize, then you can create upgrades that will be appreciated. This can turn your rental into an even more profitable investment since the renters won’t find a reason to leave when you’re great at providing amenities for their needs.
What Rental Home Renovations Add Value?
Take time to study your target renters’ needs. Different demographics will value separate things. That said, there are some general improvements property owners can make that will appeal to most tenants.
Here are common improvements to consider making:
1. Make Changes in the Kitchen
Owing to the fact that occupants use the kitchen more frequently for meal preparation and eating, it should be top of mind as an area to perform upgrades too. Budget for energy-efficient appliances since this is one of the items that people look for during property showings. If you have the budget, look for ways to make the kitchen layout and storage more functional for tenants.
You should also try to present a coordinated look in your kitchen by going for matching finishes. This doesn’t mean splurging on top-of-the-line products, you can still find high-quality appliances at reasonable costs. You also won’t need to do this in one instant. You can keep adding and replacing as time passes.
Kitchen renovations to apply in your rental home:
- Enhance the appearance of your cabinets – Simple paint jobs or new hardware can significantly improve the look of your cabinets at a low cost.
- Purchase a new countertop – Pick a good countertop with quality material like granite that’s easy to maintain and can resist stains and scratches.
- Decorate with modern finishes – A less expensive update would be changing the kitchen faucets and lighting.
2. Remodel the Bathroom
Bathrooms are another area of the rental that prospective renters place a lot of value on. This is a good area to do renovations. You can replace the bathroom fixtures, create more space, repaint the space, and install storage cabinets.
Other bathroom improvements to apply in your rental home include:
- Place a sliding door for a more spacious bathroom
- Install new shelves and hooks where tenants can store their bathroom items
- Have a 1:1 ratio when it comes to bedrooms and bathrooms to accommodate privacy, especially if you’re renting out to different people on your property
- Build a walk-in shower rather than choosing a bathtub to create more space
3. Update Your Curb Appeal
Many landlords make the mistake of focusing all their efforts on the interior of the property, but you shouldn’t dismiss the exterior. Spend some of your renovation budgets on landscaping to enhance the appearance of your rental property from the outside.
Some curb appeal improvements to apply in your rental home include:
- Paint the outer part of your home
- Creating some garden areas
- Plant fresh grasses
- Put planters near the front door
- Trim overgrown tree branches and bushes
4. Update Your Flooring
Besides its classic elegance, hardwood flooring tops the list of preferred flooring materials by renters. It’s also popular for being low maintenance. Rather than choosing carpets that require a lot of cleaning, budgeting for floor upgrades is worthwhile.
5. Perform Cosmetic Changes
Budgeting to repaint the unit can elevate the appearance of your rental. Decorating with stylish and modern accessories such as lighting fixtures is also affordable.
Consider the following:
- When painting, use neutral hues such as beige, white, and gray as these will go with most people’s furniture. You can also permit them to paint an accent wall if they request a change in paint colors.
- When adding new lights, go for inexpensive ones that can improve the property’s aesthetic.
- Consider replacing the blinds, doorknobs, and handles as this can create a neat appearance for the rental.
Remember that you don’t have to upgrade for the sake of making changes, if items are still functional, you can simply have them fixed rather than spending a lot on replacement.
6. Add Popular Amenities
Some amenities are more desired by the renters than others and you can invest in these changes. It will set your unit apart from the others as well. Prospective renters are bound to make their way to your property when they see the added amenities.
You can also opt to increase the rent rate in response to the renovations you’ve done. When adding amenities that renters value, consider the following:
- Storage space helps keep rentals organized and cleaned
- Air conditioning provides great relief and comfort during warmer seasons
- Parking spots protect tenant’s cars during bad weather or from theft
- Outdoor living areas offer more space for entertaining and relaxing
Why Renovate your Rental Home?
A lot of benefits can result from conducting rental renovations such as setting your rental apart from the competition and increasing the resale value of a property if you decide to sell it.
Other benefits include:
- Promoting energy efficiency that leads to lower utility bills
- Delivering tenant satisfaction that makes them want to stay long-term
- Lowering the cost of maintenance
Bottom Line
Try these recommended rental property renovations to stand out from your competition and increase its value. If you would like help managing your investment properties, contact the experts at Realty Management Associates today!