Each real estate investor wants their property to increase in value. The only way to increase property value is to wait for a housing market upturn. However, landlords have some immediate and tangible ways to increase rental properties’ value. We’re going to cover the best upgrades for a rental property to increase rent and your bottom line.
Rental property improvements are different from improvements to a primary residence. You need to strike a balance between investing enough money to increase the property’s value and attract top tenants and not spending too much on unnecessary things that won’t bring you a return. The best investments in rental properties will improve the property’s overall value without adding too much.
Upgrade to Rental?
Let’s state the obvious, higher rent. When you begin to make improvements to increase property value, you’re also giving yourself an opportunity for an argument to increase rent. Newer appliances, better floors, fixtures, etc. For nicer items, people will pay more. Here are some other tips to consider when renovating your rental.
Your Property It Will Be Different: When you renovate your property, you’re showing potential renters that you care enough to make it attractive to renters. Make your property attractive to potential tenants by renovating.
Energy Efficiency Improvements PossibleYou can lower the cost of utilities by installing new appliances, changing the windows, and/or thermostat settings. So, if you’re the one paying utilities for the property, it’s a big benefit to you.
Overall, Increase in Property ValueThe potential for a higher resale price will be increased by improving the property’s overall features.
Major tax deductions: A lot of what you spend could be tax deductible from the property’s taxable income.
Best Upgrades For Rental Property
So, you’ve put your budget together and you’re ready to invest in your property a bit more to help increase its value. Great! These are the best! Top 10 Here are some ways to improve your rental income.
Plumbing Fixtures
Bathroom fixtures such as sinks, faucets, and sprayers for the kitchen or bathroom can become worn and dirty quickly. You can find fixtures that are still in use. 10 Landlords should change them if they are over five years old.
Standard grade is usually associated with shiny chrome finishes. However, upgrading to finer finishes like oil-rubbed Bronze or brushed Nickel will improve the appearance of your rental property. Whatever landlords choose, they should make sure that all the fixtures are the same to bring harmony and unity to the home’s décor.
Of course, if you’re looking to do an overall renovation of something like a bathroom, you have to check out this video on how to do so on a budget.
Countertops
The lowest quality countertops are the plastic laminate ones that don’t stay nice for long as they are subject to discoloration from liquids and burns. Over time, laminate countertops just don’t hold up.
Granite, slate, quartz or any other solid surface material can be used to enhance the appearance of your kitchen or bathroom. There are many stone alternatives to countertops, including acrylic/polyester and stained concrete. These options are beautiful and long-lasting.
(*10*)Floor
It is a great way to increase the property’s value by installing a new flooring in some areas or throughout your rental property. The landlord and tenant will be able to replace standard-grade carpet with laminate or tile. Here’s a handy guide on Flooring options for rental properties.
(*10*)Storage
Renters are very concerned about storage, so landlords should make sure their properties have ample storage. You can increase storage by adding hooks in key areas such as bathrooms and entryways, organizing closets, and adding shelving to a pantry.
Some of the more involved storage property upgrades include the installation of permanent shelving in the garage or creating built-in shelves and in-wall storage.
(*10*)Windows
It may be time for new windows, depending on the age of your rental property. Windows not only help keep a property bright and clean, but they also play an important role in keeping heat and cool at bay.
Double-pane windows can be an option for landlords. This will provide greater insulation and reduce outside noise. Windows with blinds within the panes and insulated windows are other options.
(*10*)Roof
When a roof reaches approximately fifteen years old, it’s time to consider getting it replaced. Neglecting to replace your roof could cause severe damage during severe weather. Who wants that call in the middle of the night that there is a leak in the roof and it’s currently damaging the inside of your property?
A roofing inspector should inspect the roof of a landlord and recommend that it be replaced. A quality roof protects your investment and looks great.
(*10*)Cabinets
Think about it, old dingy cabinets give off a vibe that they shouldn’t be well taken care of. Sometimes the wood may have an unattractive smell and sometimes it might be so poorly made that they are prone to falling apart after a few years. So, let’s break this down a bit more. If the cabinets are falling apart and cannot be repaired, it’s time to get new ones. Cabinets can be costly, but they are well worth the money.
If the cabinets are old, but are structurally still intact and look good, maybe it’s time to get your DIY juices going and get out the paint or hire a contractor to do so. Fair warning: Make sure you use quality paint and take your time with the project. A bad job will only fuel the fire that you need to get new cabinets.
Paint
This is a great introduction to one of the most overlooked things in increasing the rental property’s value. It is extremely important to paint! Picture: Imagine a tenant walking into your apartment with yellow walls and $1500 in rent. Imagine the same renter coming in, but with walls painted in a simple cream or gray color.
It’s up to the latest design trends, as much as it can be, and you’re still charging that $1500. Which of these scenarios is most likely to get the renter signed up for a lease? My point is, paint can make all the difference and can create a lasting first impression, especially for someone who’s looking and ready to move into an apartment.
Curb Appeal
We’ll imagine the same scenario as above, but this time with curb appeal in mind. As mentioned, first impressions can mean so much, especially to a renter that’s ready and willing to sign a lease agreement. When a property looks as if it’s constantly being maintained because it has something like nice shrubs or grass that’s cut and trimmed, the renter is likely to feel that the landlord cares enough about the property to Not Let it go. With that in mind, the landlord will check in with the tenant to ensure that everything is in order.
Appliances
Oh, the age-old question — do you supply appliances in a rental or leave it up to the tenant? For one, we know that appliances are going to up that monthly rent because it’s going to be attractive to tenants that they do not have to purchase their own. Secondly, if you were going to sell the property, appliances always add a nice touch to the seller’s description for the same reason it would be attractive to a renter.
Are You Ready to Update Your Rental?
Landlords should be investing money in improving their rental properties. Attract higher-quality tenants and boost property values, it’s important to focus on the right things. A fancy kitchen won’t do much if the roof is leaking or the basement has mold.
Landlords should start with the basics, then move on to the more decorative improvements. Landlords should also Avoid doing too many upgrades Over-improve. Putting in top-of-the-line flooring material, for example, isn’t a wise idea in a rental where the landlord has little control over how tenants will treat the home.
Landlords need to find that fine line between investing in their property and doing so much that they won’t ever benefit from the fruits of their hard work.
The post Top 10 Rental Property Upgrades RentPrep.com first published this article
