Property Enhancements to Attract Tenants and Increase Profits Property Enhancements to Attract Tenants and Increase Profits
Published on: Wednesday, December 16th, 2015
Rental property investors should consider a variety of renovations and other property enhancements to increase profits and attract better-qualified tenants.
When deciding how to prioritize your property improvements, it’s important to weigh the cost against the potential return on investment.
Does it make financial sense, for example, to install high-end hardwood flooring? If your rental is in an upper-middle class neighborhood, then maybe. But choosing a less expensive and more durable wood-like laminate might make more sense in lower- and middle-income rentals.
In this blog post, we’ll give you some ideas for inexpensive upgrades and suggest some higher-cost renovations for future profit gain.
- Professional cleaning. Renters at all income levels appreciate a clean rental property. It shows respect for your property and for them. Try professionally cleaning the carpet and flooring before replacing it. Clean grime and scuff marks off the walls. Sometimes rental investors rush to repaint or re-carpet when all that is needed is a thorough cleaning.
- Repaint. If it’s been five or more years since the interior has been painted, it may be time for a new coat of paint. Are the property’s paint colors out of date? Is there drywall damage or chipped paint? Painting is relatively inexpensive, but will give your rental property a fresh look. Consider using neutral shades for the most universal appeal.
- Keep the yard mowed, fertilized and weed-free. Trim bushes and trees. Consider planting flowers, but make sure you’re committed to mulching, watering and weeding or you might invest in a yard service.
- Make inexpensive interior updates for a more modern feel. Consider replacing doorknobs, ceiling fans, light fixtures or kitchen cabinet pulls with today’s more modern looks.
- Replace broken and damaged mini or plantation blinds with lower maintenance curtains or string-free cellular blinds.
Higher-cost upgrades and renovations:
- Upgrade kitchen appliances. If your appliances work well and still have an acceptable appearance, replacement isn’t worth the cost. However, if they are more than 15 years old and are a lovely mustard yellow, you could likely replace them and command a higher rent.
- Resurface kitchen cabinets. Resurfacing cabinet doors and adding new pulls will be a less expensive option than full replacement, but consider total replacement if they are in really bad shape.
- Renovate the bathrooms. Instead of replacing the tub, get it resurfaced. Upgrade lighting and mirrors. Replace linoleum with more durable ceramic or porcelain tile. Add a rain showerhead for a luxurious spa feel. Realtor.com notes that kitchen and bath remodels offer nearly an 85% ROI, making them sound investments whether renting or selling.
Your renovated property has the potential to command higher rents with a few well-chosen improvements, but don’t go overboard or your return on investment will suffer. Look for opportunities to do repairs or minor renovations that will be appreciated by your tenants, but won’t break the bank.