Thinking about doing some upgrades to a rental property to attract higher-paying tenants? It doesn’t matter if someone has decided to rent their first property or if they’re a seasoned landlord; finding ways to increase property value for rentals can seem tricky. While waiting for the housing market to increase will eventually increase the value, some simple home upgrades can instantly increase home value.
It may seem tempting to gut an entire property and start from scratch, but that’s not necessarily how to add value to your home. By simply renovating the kitchen, bathroom, technology, and appliances, professional property managers can bump up their rental homes’ prices and still appeal to tenants. Read on to discover what updates will catch the eye of anyone searching for a rental!
Renovate the Kitchen
Whether people are cooking, eating, or just hanging out, there is a lot of time spent in the kitchen. While different surveys argue over which room is the most used in a house, the kitchen is always in the top three most important rooms in a home. The popular real estate app Trulia, the kitchen—along with the master bedroom—are the two rooms that could make or break someone’s interest in a house or rental. So, what kitchen updates are the best ways to increase home values?
Aesthetics are essential for any kitchen and will catch the eye of any potential renters. Keep in mind that you won’t need to buy the highest quality products; a kitchen that looks cohesive will do the job. Try matching all kitchen appliances’ colors, adding a new backsplash, or painting the cupboards to complement the countertops.
Speaking of countertops, give those an upgrade too! It’s unnecessary to buy the highest quality granite countertops, but changing the 1980s style countertops to something more modern will make the entire kitchen look newer. Some popular options include quartz, slate, or a stone alternative (concrete or polyester/acrylic composites).
Some other easy updates include:
- Add more storage (closets, cabinets, pantry)
- Update the floors to tile or laminate (especially if there’s carpet in your kitchen or dining room)
- New plumbing, such as faucets and sink fixtures
- Add an island (if there’s space, otherwise the kitchen will get too cramped)
- Make it an open floor plan
- Re-grout the kitchen tiles
One thing to keep in mind is that landlords don’t want to spend too much money renovating. Otherwise, the rent may not cover both the mortgage and the price of the updates. When deciding what to renovate, examine the space and decide what will be the most cost-effective. For example, don’t knock down an entire wall if adding a serving hatch will cost thousands less and serve the same purpose of opening up the kitchen.
Remodel the Bathroom
Ever walk into a bathroom and thought, “ick?” Well, tenants might, too, if the bathroom is old and cramped. Adding easy upgrades to the bathroom is definitely what makes property value increase.
Like the kitchen, start by remodeling the bathroom by updating the outdated cabinets, sinks, faucets, tiles, and draw handles. The goal should be to make the necessary updates to make the bathroom appear new and clean but not cost too much. Some other easy updates to make include:
- Improve the lighting
- Increase the storage for towels and toiletries
- Re-tile the floors
- If there’s only a shower, add a bathtub
- Add a double sink or update the vanity
If there’s room, consider adding an extra bathroom, especially if there’s only one bathroom in the home. According to the National Association of Homebuilders, adding a half bath will increase the property value by 10 percent, and adding a full bath will add as much as 20 percent.
Add Technology
In a world that relies so heavily on technology, it’s no wonder that adding some tech updates to the rental property will interest renters. But which technology updates are worth it?
Adding technology to the home doesn’t have to be difficult, and landlords can start with climate control thermostats. Tenants will appreciate these smart thermostats because they can control the temperature quickly and often from their phones!
Smart lighting is another good investment. Besides saving your tenants money on electric bills, smart lighting is a neat feature. The lights are compatible with phone apps, dim or brighten depending on the natural light, and are often environmentally friendly.
Some other great technology options to add include:
- Smart garage door openers
- Smart locks and keyless entry
- Built-in speakers
- Smart appliances
- Home security systems
Add Updated Systems and Appliances
Even if leases guarantee maintenance for any broken appliance or system, no tenant wants to deal with systems and appliances continually breaking down. So, when deciding on updates for a rental property, newer systems and appliances are a must.
This update may be one of the most important ones to make because even if the kitchen and bathroom have the perfect updates, a broken water heater, leaky roof, or poorly installed electric could ruin break the deal.
If the upgrades have to stick within a specific budget, the refrigerator, built-in stove, and high-efficiency washer are the most essential appliances to upgrade. This is especially true if the property doesn’t already have a washer and dryer.
In general, these updates will always pay off in the long run and increase the value of the property:
- Update the roof. A leaky roof will cause problems for both the landlord and renter, so always make sure the roof is replaced every 15 years or so.
- Automatic garage door. If the garage door is not automatic, have the system installed to make leaving and coming home easier for renters
- Bigger water heater. Not having enough hot water can be a real issue, so upgrade the water heater to avoid this issue.
- Add a working fireplace. Whether it’s wood burning, gas, or electric, make sure the fireplace works.
- New windows. Windows are more than letting light in; they are the most vulnerable place for cold air to come through. By installing windows with better insulation, tenants may avoid putting plastic wrap over the windows.
Final Thoughts
Of course, some ways to increase rent are out of your control, like property location, size of the unit, loud neighbors, busy highways, etc. But if you make updates to the kitchen, bathroom, technology, systems, and appliances along with some home staging, you’ll have no problem increasing property value, increasing the rent, and still finding great tenants.