Upgrading your rental property comes with many perks, however, are they worth the cost? The answer is yes if you take the time to plan it out.
With the new year here, it might be time for you to make a few improvements to your rental property to increase its curb appeal and overall value. Here are a few ideas to get you started.
Smart Upgrades for Your Rental Property
Fresh Coat of Paint
When it comes to improving your rental property's curb appeal, repainting the building is one of the most common improvements you can make for exterior upgrades. Even something as simple as painting your front door a new color can go a long way, and it won't be as expensive as other upgrades like major structure renovations.
Outdoor Living Space
A 2021 study shows that 90% of Americans believe that outdoor spaces are becoming more valuable than ever, which includes patios, decks, and porches. The post-Covid world still demands outdoor amenities for an attractive rental property!
You can add furniture so tenants can enjoy outdoor hobbies like grilling, gardening, and more. It can also attract potential renters who are interested in outdoor leisure activities.
Bathroom Remodel
You can modernize your rental unit by replacing bathroom fixtures and following layouts based on current trends. It doesn't even have to be a complete renovation. Even painting the tiles to make them seem new, installing a new shower head, or replacing the light fixtures can go a long way. An up-to-date bathroom will do a great job of attracting tenants to your business.
Storage Space
Prospective tenants will have plenty of their own belongings, and not having enough storage space can be a dealbreaker for them. You can add storage by installing new shelves, building new closets, or adding easy ready-to-assemble furniture. This will especially appeal to long-term renters and doesn't call for major home renovations.
Smart Home Features
One sure way to increase property value is by installing smart home devices into your rental units. You can add new hardware to allow keyless entry or simple upgrades like smart speakers to provide a level of automation for your tenants. Potential tenants are now looking for rental properties that utilize modern technology, especially since they can be more energy efficient.
New Flooring
This is ideal for vacant rental properties since it can take between 1-3 days to renovate your rental property's floors, depending on how big the unit is. Luxury vinyl plank is becoming more popular in the rental market, and it might be worth the cost if leverage this luxury when you market your investment.
New Appliances
This is advisable especially if your appliances are out of date. You'll find more interested renters if your rental property comes with stainless steel appliances like a refrigerator or a gas range. Having appliances that are resistant to stains and corrosion will definitely increase your property's rental value.
Kitchen Remodel
While this is more of a major rental property renovation, remodeling your kitchen can be just as useful as a bathroom remodel. It doesn't have to be a complete renovation. You can simply add new countertops, install new cabinet hardware, or replace the floor. It might cost you more, but it will add to the money you can get back in rent.
Opening the Space
You can open the space in your unit by adding more windows to the building or making it an open floor plan. This brings more light into the rental home, and it wouldn't hurt to add new lighting as well to complement the new layout of the place.
Rental Property Upgrade FAQs
Are Property Upgrades Expensive?
That depends on the improvements you intend to make and how you do them. A DIY project might cost less than hiring a professional, but you might not have the expertise to do it right, which could cost you more in the long run. Of course, there are low-cost upgrades like new interior painting or adding new features like ceiling fans or bathroom vanities.
Is There Long-Term Value in Renovations?
The major long-term benefit to upgrades is the increase in resale value should you choose to exit the business. While you might have to spend for the upgrades, it can also be a good investment to add energy-efficient upgrades since they will allow you to save money on energy costs.
Are Property Upgrades Time-Consuming?
Again, it will depend on the kind of upgrade you're making. If you intend to completely change the unit, you can expect it to take weeks or even months to finish. Adding a new roof could force current tenants out for some time and may affect your rental income, so you have to plan accordingly and adhere to local eviction laws regarding displacement brought by renovations.
What Are the Benefits of Property Upgrades?
The main advantage is the increase in your rental value allowing you to charge more money for rent. There's also the boost to renter satisfaction, which allows you to stay competitive.
Does This Guarantee Improvements in the Business?
It's never a guarantee, but it will likely help your business thrive by giving you the option to charge more rent, find more high-quality tenants, and potentially reduce maintenance costs through higher quality upgrades.
Hiring a Property Manager Can Help You Save
Although it sounds counterproductive, hiring companies like Blue Line Property Management might actually help you save more on renovation or upgrade costs. We have access to a network of trustworthy vendors and can coordinate everything for you, no matter how major the changes are.
Our services can also help add more flexibility to your schedule so you can venture into other business opportunities while you earn passive income. It's one of the many reasons landlords choose to entrust their business to us, and you can start enjoying those benefits as well!
To get started, explore our services on offer to learn more.
