5 Renovations That Will Increase Rent and Add Value to Your Rental Property

Will Johnson's picture
5 Renovations That Will Increase Rent and Add Value to Your Rental Property

5 Renovations That Will Increase Rent and Add Value to your Rental Property

 

As property managers and real estate investors, we view our rental properties as a business. Whether we own or manage rental homes or apartments, we make our decisions based on what we think is best for our bottom line in the long t-term, the short term or both. More often than not, this includes doing everything we can to limit expenditures, while trying to increase rent as much as we can to gain maximum profitability.

 

It follows, then, that it is natural that we try to limit and avoid renovations unless they are absolutely necessary. However, when they are necessary, or there is opportunity make our properties more marketable and demanding of higher rents. Here are five areas to invest in smart renovations to maximize property value and increase rents.

 

Fresh Paint/Flooring

A fresh coat of paint does wonders for first impressions of a home or rental unit. New paint gives a fresh, clean look to a home. Better yet, paint is very inexpensive. While slightly more expensive, new flooring has the same effect. People want to live in a clean environment, and prospective tenants will be attracted to, and pay higher rent, for a place that feels fresh and new.

 

Kitchens

While paint and flooring cover the most surface area, people spend most of their time at home in and around the kitchen. Just like your own home, renters see value in a nice kitchen. Clean and repair the countertops. If they are dated and your budget allows, counters can be replaced relatively inexpensively. Cabinets are more expensive to replace, but a fresh coat of paint and new hardware can make older cabinets look new again. Clean appliances that are in good working condition are a must if you want to charge maximum rent. Swapping out the faucets is another inexpensive upgrade to make a kitchen look clean and new.

 

Bathrooms

Like the kitchen, bathroom renovations can bring high value to your rental property. Make sure you deep clean and repaint the bathrooms every time you turn a unit. Make sure to repair or replace the counters, flooring, shower/bath and toilets, if they are showing wear. Upgrading faucets, the towel bar and other hardware are inexpensive ways to improve the bathroom.

 

Curb Appeal

Whether someone is selling, leasing, or simply entertaining curb appeal is very important. People, or at least the type you hope for as tenants, want their friends, neighbors and passers by to view their home as appealing. Make sure the house or apartment looks clean and well maintained from the outside. As always, a fresh coat of paint goes a long way. Make sure windows & doors are in good working condition and appear clean. Tidy up the landscaping and keep the common areas free from trash & clutter.

 

Basic Maintenance

Perhaps the most important “renovation” you can perform on your rental property is simply keeping up with basic repairs and upkeep. While many landlords choose to defer maintenance until the last moment, this is a terrible practice. Putting off basic maintenance of your property will almost always lead to bigger problems and more expensive fixes down the road. Further, fulfilling maintenance requests in a timely manner and exceeding the service expectations of your residents, will lead to higher retention rates and less complaints when the market demands a rent increase.

 

Will Johnson is Publisher at Rental Housing Journal

Rate this article: 
Average: 5 (4 votes)