Best Home Renovations To Increase The Value of Your Rental Property
Every investor knows that a few key home renovations can do a lot to increase the value of your rental property. Not only do these improvements increase the market value of your investment, they also help your bottom line in other ways.
Whether you manage yourself or use a property management company, having a well-renovated rental property helps you attract tenants more quickly. This gets your unit off the market and kick-starts your cash flow. It also helps you attract—and keep—high-quality tenants. When renters are satisfied with the quality of their unit, they are more likely to renew the lease for multiple cycles. Plus, when you’ve ensured everything on the property is in good working order, you’ll pre-emptively save time and money that might otherwise go toward dealing with tenant maintenance requests. Using a property management company can be the most cost-effective way to handle routine maintenance, but you’ll save more when you avoid these costs altogether.
Whether you’re between tenants or preparing to list a new unit—through realty management or on your own—here are 7 of the best home renovations to increase the value of your rental property.
7 Best Home Renovations to Increase the Value of Your Rental Property
Polish the Unit’s Curb Appeal
When thinking about home renovations, it’s easy to focus on the interior. But remember, the first thing a potential tenant will see is the outside, and you want to make a good impression. If the property is not well-maintained, it will stand out as a rental from the other homes in the neighborhood. While costly renovations to landscaping are not a great investment, small adjustments can give the place an impressive polished look. Consider putting on a fresh coat of paint, power-washing the driveway, fixing broken fencing, trimming any overgrown plants, and maintaining the lawns. These cost-effective fixes not only increase the value of your rental property, they’ll also be sure to give potential renters a positive first impression that they’ll carry with them into the home.
Upgrade the Kitchen
One of the first rooms people look at when they walk into a rental property is the kitchen. Focusing your home renovations on the kitchen can set your property apart from other rentals and check a lot of boxes on potential tenants’ must-have lists. Granite countertops, a nice backsplash, new cabinets—these are all kitchen renovations that make the room look modern and inviting. Also consider investing in new matching appliances. Not only will they look great, but they often come with a warranty that will save you money in the long run. When everything is running well, your tenants will have fewer maintenance requests throughout their occupancy—and again, a happy tenant is more likely to renew their lease.
Swap Out Flooring
Switching from carpet to hardwood flooring is one of the best home renovations to increase the value of your rental property. There are several great reasons to rip out that old carpet and start fresh. First, it will increase the market value of your home. Second, it’s easier to maintain than carpeting and lasts much longer, which is important when you’re renting it out and changing tenants every few years. No more stain removal, shampooing, or even replacing old carpeting to prepare for new tenants. Lastly, as hardwood floors are a highly desirable asset, this renovation helps attract a higher caliber of tenant to your unit.
Updating the fixtures in your rental property is a quick, relatively inexpensive way to increase the value of your unit. Light fixtures affect the overall look of your property; new, sleek installations can quite literally make a tenant see the whole home in a more positive light. In addition to updating light fixtures, you can change out a number of smaller fixtures as well – like light switch covers, handles, and doorknobs. These small investments can go a long way in making your property look refined.
Make the Bathroom Pop
It’s also important to give the bathroom extra TLC when renovating your rental property. Check the state of the cabinets, counters, sinks, bathtubs, showers, and toilet. If everything is in good repair, consider making a few small aesthetic upgrades. These might include swapping out linoleum flooring for tile, upgrading the light fixtures, and painting the walls a neutral, elegant color. The bathroom is a great opportunity to wow potential tenants and leave them with a good impression of their possible new home.
Create Maximum Storage Space
Maximizing storage opportunities is another home renovation that will increase the value of your rental. This can be a large project, like installing better kitchen cabinets or built-in shelving, or even building a shed in the backyard of your rental. It can also be minor projects like adding bathroom hooks or coat fixtures right into the wall. This helps a tenant maximize space by eliminating the need for stand-alone storage items—and decreases the likelihood that they will damage the property when trying to install their own hooks, racks, and shelves.
Replace the Roof
The average roof should be replaced every 15 years. While this might seem like an expensive preventative fix, it can save you a lot of money in the long run. Better to replace the roof at the recommended time than perform even more costly repairs when a leak causes major damage to the rest of the property. Not to mention, a major issue like a leaking roof that ruins a tenant’s possessions is likely to make them look elsewhere for housing. Maintaining your roof is a vital way to protect your investment.
North Texas Property Management Services for Your Rental
Ready to rent out your property? Managing your own but want to make the switch to using realty management services? TRGhouses’ north Texas property management company is here to help with your properties in Allen, Celina, Frisco, Little Elm, McKinney, Plano, Prosper, and Richardson! Our property management services make things easy by taking care of the logistics—from finding tenants to preparing leases to handling maintenance requests—so you can sit back and profit from your investment.