If you have a rental property, you may be like some of our professional property management clients: you want to rent your property while it appreciates so you can sell it down the road and lock in profits. If that’s the case, adding value to your home through rental upgrades is a wise choice.
Maybe you’re not sure where to start. Thankfully, we’re here to help. Here are three high-value, rental-friendly upgrades for your rental home.
You can make your rental property more attractive to tenants, command higher rents, and get more money for your property when you go to sell, all in one fell swoop. Here are the three best value upgrades for your rental property.
One of the easiest ways to add value to your home is to replace key portions of the house. Replacement projects don’t have to be anything significant. Simply replacing doors, windows, siding, and fixtures can make your home look brand-new and more appealing to a potential tenant or a buyer.
Finding energy-efficient versions of doors and windows or more durable siding that also looks attractive makes replacement projects especially more appealing to the market. New siding, in particular, can pay off; on average, homeowners recouped 92.8 percent of the cost, according to one study.
Another excellent replacement project is flooring. It’s hard to get flooring just right, as every renter will have their particular preference, but it’s nice to keep it up to date and to look fresh. As a rule of thumb, wood flooring tends to be the optimal choice.
Another option considered to be a high-value rental property improvement is the remodeling of a kitchen. Kitchens are high-visibility rooms that almost any buyer wants to see. It can be a make-or-break deal.
According to a study, a renovation of the kitchen, including revamping appliances and countertops, can recoup as much as 92.9 percent of the cost.
Kitchen remodels add value because people want great-looking kitchens with plenty of usabilities. It’s not just about what your kitchen looks like; it’s also about what it can do, and that typically means having solid appliances.
A great place to start with a kitchen remodel is with your countertops. It’s common to see laminate countertops, especially in rentals, because they are known for being one of the least costly options. Unfortunately, though, you get what you pay for with these plastic countertops. Not surprisingly, they do not hold up well to burns, and liquids and are subject to unsightly discoloration over time.
When looking to replace your countertops in your rental kitchen, consider a more substantial surface, something like quartz, slate, or granite. Not only will you boost the longevity of your countertops, but you’ll help boost the visual appeal as well. If you’re looking for the most affordable options, you can check stone alternatives like stained concrete, ceramic tile, or acrylic/polyester composites.
Finally, remodeling a bathroom – or even going as far as adding a bathroom – can pay off in a big way. Bathroom remodels consistently provide a great return on investment. People look to bathrooms as well as kitchens to determine if a home has serious value or not. A great-looking and comfortable bathroom with plush amenities can go a long way in making your home look great.
Bathrooms are especially crucial if your home has one fewer than most homes in the neighborhood. If you have one bathroom and the norm is two, you might want to consider adding another bathroom to the house.
While these projects might seem lofty for what you are looking at getting started on right now, don’t worry. There are plenty of other rental property improvements worth considering that might be easier to tackle right away. Here are a few of the top ideas.
One of the simplest yet the highest returns on investments in rental properties is as simple as adding a fresh coat of paint. You can purchase your paint in bulk to help reduce costs and make touch-ups easier for you in the future.
When it comes to fixtures in both bathrooms and kitchens, they can get very dated, dingy, and just gross over time. Not to mention their functionality is likely to suffer in an extended lifetime. As a rule of thumb, you should always consider changing out your fixtures at the latest when they become ten years old, regardless of the condition.
Renters across the country are constantly seeking out additional storage. So, it comes as no surprise that as a rental property owner, increasing storage capacity in your property should come as a top priority. Creative storage upgrades might include adding a new shed, framing a new closet, or creating built-in shelving throughout the property.
A washer and dryer for your rental property is a great addition that can quickly provide you with a good return on investment. If you’re worried about costs, you can consider adding them to your monthly rent amount. You’d be surprised to see how many renters are willing to pay more for the convenience of their washer and dryer on the property.
So, whether you’re ready to break ground on some major renovations, like a large-scale replacement project, a kitchen remodel, or a bathroom remodels, or you’re looking for something smaller, like fresh paint, upgrading fixtures, increasing storage, or adding a washer, the decision is up to you.
Ultimately, adding value to your home through any of these rental property improvements is a wise choice. These upgrades will help you rent your property while it appreciates to sell it later on for greater profits. Contact us for more property management advice about getting the most from your investment.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.