What Adds the Most Value to a Rental Property?
If you want to increase your rental property's value and attract long-term tenants, you may want to consider renovations. Knowing how to maintain your rental unit is crucial, but additional improvements to your property can help you limit vacancies and gain a competitive edge in the rental market.
There are many ways to approach renovations, but it's always important to consider your renters' needs. This will help keep your current renters loyal while attracting potential tenants. If you'd like to learn which renovations to perform on your rental property, keep reading!
Why Over-Investing Should Be Avoided
As much as landlords might want to create an aesthetic living space, landlords must learn to curb overspending, especially on non-essential updates.
A tenant's needs may differ from a homeowner's. Landlords can save more by focusing on changes that increase functionality and bring comfort to renters. Tenants are also unlikely to take care of furnishings like homeowners do, so it's best not to over-invest in aesthetic changes that may eventually get damaged.
Know What Tenants Want
When considering what kind of renovations to perform in your rental property, it's essential to see things from the perspective of a potential renter. To do so, you need to ask yourself the following:
What amenities do renters benefit from?
What amenities excite renters the most?
What amenities add value to your property?
Having the answers to these questions makes it easier to proceed with your renovation project. Remember to continually invest in property improvements that make an impact and may justify a higher rental fee. With better amenities, you could engage more potential tenants; ensure the market you focus on can afford the rental rate.
4 Rental Property Renovations You Should Consider
Check out and consider conducting these four renovations to land more renters:
Make Kitchen Improvements
One of the areas renters pay the most attention to during property showings is the kitchen. As a landlord, you want the overall design to be cohesive and organized. You should ensure the finishes and appliances match.
Opting for stainless steel finishes creates a neutral color palette that goes well with most things. It won't clash with the renters' cookware, and you don't have to spend much time and money overhauling your kitchen, as there are reasonably-priced quality kitchen appliances.
Besides appliances, here are other items you could renovate in your kitchen area:
Cabinets. You don't have to install new cabinets to improve their appearance! You can sand and polish the existing ones and add a fresh paint coat. This will make them look new while limiting your spending.
Countertops. Investing in a granite or quartz countertop is recommended, as it may be an attractive feature for renters. Granite or quartz will last longer than other materials and are easy to clean.
Modern fixtures. Specific details can enhance the look of your kitchen at little cost. You may want to install new faucets to create a more elegant look or add glass tile backsplashes to protect your walls from cooking splatters.
Remodel the Bathroom
Bathrooms are another area to make improvements on. It's best to provide a cohesive and neutral design like the kitchen. You can buy new shower heads and faucets and assess how to maximize space.
Here are some ideas to upgrade your bathroom:
Bathroom doors. You can replace existing doors with sliding doors or barn doors. This is a budget-friendly option to create more space without knocking down walls.
Walk-in showers. If space is tight, replace bathtubs with walk-in showers to conserve space.
Storage. Install additional shelves, towel racks, and hooks to store more items.
If you're looking to perform a more exhaustive renovation, a good ratio to follow is having one bedroom for every bathroom. Offering that additional privacy would make it easier to accept more tenants.
Boost Your Property's Curb Appeal
Since prospective tenants will likely check out a rental property's exterior before looking at its interior, it's essential to generate interest by showcasing an attractive exterior. One way to achieve that is by investing in proper landscaping.
Ensure your yard is clean and free of clutter. Consider implementing a regular and straightforward maintenance program, as renters are unlikely to spend much time maintaining your rental's exteriors. If there are any specific standards you'd want your tenants to respect, include them in the lease agreement.
The following are some tips to update your curb appeal:
Leave space for a garden. No matter how tiny an outdoor area is, having plants can brighten the room. Including planters or a small patch for gardening can be a big draw for tenants.
Select beautiful plants. Choose your plants carefully and prioritize low-maintenance ones to create an attractive outdoor area.
Paint the property's exterior. Apply a fresh coat of paint to enhance the look of your rental's exterior.
Update the Flooring
Hardwood floors are among the most sought out and desired amenities. They come with various benefits, including being easy to maintain and appealing to look at. As far as investments go, they can be reasonably expensive, but a high-quality material will last you longer and may result in less wear and tear over time.
It would be best if you considered installing hardwood floors because they:
Increase your property's value due to its high appeal.
Require less maintenance than other types of flooring.
Create a warm atmosphere.
They are durable and can thus create a better ROI.
Bottom Line
Understandably, landlords may hesitate to upgrade their units, as renovations require time and money. However, renovating your property can help you maintain a competitive edge and retain tenants, which ensures your income remains consistent.
If you're seeking a reputable property management company to handle your rental unit, contact Freedom House Property Management today to benefit from a full suite of outstanding services!
